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Monday March 11, 2014

RandomWalkTrading.com

1(855)RWT-0008

The Year of Selling Premium Has Started in POT

More selling on the open. 

Next Online ClassScreenshot 2014-02-27 05.56.09

Condors, Iron Condors, Iron Cockroaches and Unbalanced Condors all included!

Saturday March 15. 

yesterday

Market ConcernsDowJones

The Dow closed down 34.04 at 16,418.6

We had an initial selling (on the open) of about 40 – 50 points and then some capitulation (or concern) begin to permeate. The Dow then sank to 16,334, which was down about 118 points. But no sell-off seems to be able to hold any ground as we bounced back and closed down only 34. This is definitely the sign that people are starting to buy stocks regardless of value, and the end is getting closer and closer. 

AAPL

AAPL closed marginally higher. It settled up 0.48 at $530.92

The stock seems to have huge buying interest every-time it falls below $530, which is why I got long some deltas for the POT examples. For example, when the Dow was down 110, AAPL shares were down on the day by about $1, then immediately bounced to up $0.50 on the day – when the market was looking its worst. 

VIX

The VIX closed higher to settle at 14.20, up 0.09.

The volatility index / fear index was above 15% at one point, and settled at its dead lows. 

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Up 0.15 at 106.04. Thanks Maui 14!

Current TLT position:

Silver and Gold

GLD = closed up 0.04 at 129.13

SLV = closed down 0.07 at 20.01

TESLA

Tesla closed down 7.37 at 238.84

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Yesterday

Most of yesterday was summarized in the DOW writing above, but there is one thing of interest to point out. More money flowed into the markets last year (2013) than had come out from 2005 – 2010, the end of the banking crisis sell-off. All that money had to go somewhere. 

Today

Today’s numbers are a joke, but it could serve as reason to take the market up once again. Keep in mind that all the major indexes, with the exception of the Dow, made new highs last week. But people don’t take it seriously because the mainstream news only reports new highs when done by the Dow.

So we are now currently 170 points away from making a new high in the Dow, which I think needs to be done in order for this market to kick into its final phase of buying. Remember, I have been touting this since last June, so I am not going to back off after being right (by luck) for so long.

The real numbers don’t come out until Thursday and Friday with the PPI, Initial Claims, etc. 

POT

POT-

On Friday we bought a $15 wide SPX put spread. At the lows yesterday we sold another $15 point put spread much further OTM. We now have on the mother-of-all condors. The problem is that we didn’t open down enough to get it on for free, so I have $1.20 invested in it. I will get that back. I hate spending money on hedges. 

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New POT people. Keep in mind that new people are always lost for a while. You are coming to a movie that has been going on for a while, so it will take a few days to catch up to the plot and characters.

Too True To Be FunnyWTF

(Never a joke, but always funny)
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How could they be out of business and Dominoes is still going strong?

And if that were not a sign the bull market is getting closer to an end, the next one will confirm it. 

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Attorney StuffMug

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