Wednesday, October 13, 2010

Bookkeeping: Adding more SPY Calls

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Unfortunately, as I bought a scad of equities yesterday, I drew down my SPY call exposure by an equal amount meaning I am less rich today than I should be, per Bernanke directive.  Thus far our gentle leader has added well over $1.2 Trillion of wealth to Americans in 6 weeks.    You want a stimulus program? I got a stimulus program for you!  Boo yah!

My bogey for S&P 1170 as a top has been broken and now our gains are limitless.... we are only limited by your imagination (or the lower bound of the U.S. peso aka $0).   To that end I bought back some SPY calls (about 4.5% exposure) and moved out from November 117s to November 118s.  Still own about a 2% stake in the Nov 117s.



Frankly other than the psychological barrier of S&P 1200, there is no real resistance other than yearly highs of 1220.  And resistance is a relative term.  Bernanke speaks Friday morning so just like we did yesterday when he mentions the need for easing we can act surprised, put a hand over our mouth in shock, and buy stocks on the "new information" that QE is coming.

The 13 day moving average is 1156 ... as mentioned yesterday the S&P 500 has not traded below it since late August.  Until that is broken, full steam ahead.

(We are now up 140 straight S&P points without relent aka 13.5%)

Long SPY calls in fund; no personal position


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