Sunday, April 28, 2019

PONZO Updates for SPY and QQQ....04.28.2019

The new PONZO updates reflect an almost neutral short term outlook for the broader market.  The previous updates almost 6 weeks ago were dead on for PSY and QQQ but wrong for TLT which has shown considerable resilience in the face of the current bullish trend.....which is cautionary.
Best bets now are for some butterfly action although we are still id-earnings season so may be more prudent to wait a couple weeks before going too heavy...or simply scale it.

Thursday, April 25, 2019

Delta Neutral Update 04.25.2019

We haven't posted DN results for a while because we are in one of those extended lull periods where volatility has leveled off and intraday reversals are common.  Those are tough times to trade as we get stopped out of positions on a regular basis as opening gaps up or down get reversed during the course of the day so that the other side of the DN trade gets stopped out and we're left with little gains and often small losses as our trailing stops trigger.  What's interesting right now is that volatility appears to be on the upswing and if that happens with a vengeance then we'll be back in the money making mode.  For now we just play it one day at a time and enjoy the longer term gains.