Thursday, November 15, 2018

Delta Neutral Update....11.15.18

An intra day turnaround turned out well for our DN model.  We did not get stopped out in the long side in the morning session as the market dropped but did get stopped out on the short side in the afternoon session and were able to book a net .5% gain for the day.  Volatility continues to decline per the ATR and Open//Close skew.

Wednesday, November 14, 2018

Delta Neutral Update....11.14.18

We're seeing a little divergence in the TrendX signal so volatility mat taper off for a bit.  We've also see this in the best odds limit stop which is auto calculated based on the ATR and open/close spread, among other metrics.  This value has sunk from 3.2 to 2.8 over the past 7 days.
Once again, a strong open led to a gradual price erosion throughout the day and Maxine Waters threats to current financial regs singularly led to the reversal in the financials today.  Definitely a rampant risk environment and we're sticking with the Lazy Man delta neutral model for now.

Tuesday, November 13, 2018

Delta Neutral Update....11.13.18

A little lull in volatility today as traders evaluate the risk environment and a possible pullback to recent lows...or worst. 
Delta Neutral still looks like an easy way to book some coin and still sleep at night without worry of overnight big moves. 
Yes...there are opportunity costs that may be lost but our prime directive is risk management and capital preservation and out QLD/QID model has worked out well so far.
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Monday, November 12, 2018

Delta Neutral Update....11.12.18

And that was a perfect delta neutral day!!!! No risk and a nice one day pop.
Looks like more to come based on the TrendX and Skew.


Sunday, November 11, 2018

Delta Neutral looks best for now....11.11.18

This week could get squirrelly as earnings are not showing a lot of promise.  Our QQQ leveraged long/short ETFs have so far provided us with a nice linear equity curve with only modest risk exposure and for the short term this is our default trading venue.

Thursday, November 8, 2018

QLD in cash....11.08.18

We followed our own advice re the downslope TrendX and avoided today's swoon. In the market's typical bizarro behavior both the SPY and the VXX were red today, reflecting most probably the changing paradigm in the current VIX term structure and the overdue inherent decay function of VXX.  Should have been short...I know....just can't win em all.

Wednesday, November 7, 2018