Morning Update: March 26, 2014

DOW closed up 91.19 at 16,367.88

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AAPL closed up $5.80 at $544.99

POT people….. Remember that we did a bullish risk reversal Monday when the stock was at $535. Yesterday we did the opposite on a smaller spread further OTM to hedge it. What was unique is that the call side has great potential to infinity, while the downside is now an unbalanced condor. The net debit is $160, but since there is a $1060 profit in the trade I am going to adjust the position to get back the net debit. How cool is that? 

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The VIX closed down 1.07 at 14.02

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The TLT closed down $0.41 at 108.58

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GLD = 126.41 up 0.23

SLV = 19.22 up 0.01

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Closed up 0.27 at $220.44

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Yesterday

A very bullish market yesterday but not as exciting as it would appear. The market opened on the highs of the day and sat for a little while. A couple hour into the session the Dow fell 100 points off the highs, but then sprang back to life. It essentially sat in a range of up 80 to up 110 most of the day.

Yesterday I stated, “Since this thing refuses to sell off on bad news, it is likely having to go higher”. That is what we saw as the Dow closed up 91 points, about 220 points away from an all-time high of 16,588. The SPX is closer to the all-time highs. 

Today

Again…..more climbing the wall or worry. Even with the SPX and other indexes making new highs last week the majority of people were not impressed as the Dow was still far away. Friday we did make an all-time high in the SPX (1893.30) but that doesn’t show up since it was only a morning print settlement.

The markets have a lot of people selling into it, but they still run higher. I suspect that this is the smart money leaving while the party-crashers are just trying to sneak in now. This is likely going to be messy when it finally falls. 

POT TONIGHT!

POT is held each Wednesday night at 7:00pm eastern.

Contact the office at 1- 855 – RWT – 0008 for more details.

Tonight’s Topic: Questions over the last 3 weeks answered. 

Too True To Be Funny

(Never a joke, but always funny)

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