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Where we are on the SPY


The SPY continues to grind its way higher on the back of investor complacency. As you all know I have been a devoted believer in the rally until recently. We got my minimum expectation of 30 points lower on the SPY and during yesterdays session we traded right back up to highs on the SPY and near lows on the VIX. So apparently there is no fear in the market, but it still just does not feel right. I don't have a huge position on, but with the market up yesterday I was short an equivalent of 60 deltas and was actually up $220 on the day.

Notice in the above chart the range that I drew in blue. Yesterday I decided to put a very wide Iron Condor with December expiry. And those blue lines represent my breakeven points.

Last week I got short JNJ via some putspreads that I covered on Monday with JNJ trading down over a buck. Well yesterday I had an opportunity to put the same trade back on around 10 cents higher than the original trade. This thing is up 15 consecutive weeks in a row and still has a reading of over 81 on the RSI on a weekly chart.


I am only using about 20% of my capital and am going into this mornings open with a short delta equivalent of short 155 shares of SPY.

Good Luck Trading!

In The Money Trades

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