Wednesday, October 13, 2010

Bookkeeping: Adding more SPY Calls

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


Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012