• 366 days Will The ECB Continue To Hike Rates?
  • 366 days Forbes: Aramco Remains Largest Company In The Middle East
  • 368 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 768 days Could Crypto Overtake Traditional Investment?
  • 773 days Americans Still Quitting Jobs At Record Pace
  • 775 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 778 days Is The Dollar Too Strong?
  • 778 days Big Tech Disappoints Investors on Earnings Calls
  • 779 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 781 days China Is Quietly Trying To Distance Itself From Russia
  • 781 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 785 days Crypto Investors Won Big In 2021
  • 785 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 786 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 788 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 789 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 792 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 793 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 793 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 795 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other


2/15/2008 6:30:04 PM

Our services' net portfolio gain for 2007 was 107.8%! For a full break up of this performance, CLICK HERE.

Summary of Position Last Month

We entered a Feb 1280/1270 Put Option Spread on January 17 and received a premium of $150 per spread. This equates to a net return of $147.72 per $1,000 of margin or 14.77% after commissions for one month (using Interactive Brokers commission rates). The CBOE settlement price for the February SPX options was 1347.20.

While it was a tentative month with some wild swings, in the end the volatility was contained within a trading range between about 1300 and 1400, which had our position expire safely out of the money.

After going through our worst performance last month, this month we had our best performance on record. Life works in mysterious ways and I suppose as the saying goes, "it's always darkest before the dawn".

Current Position:

On February 15th we sold an SPX Mar 1200(SZPOT)/1190(SPTOR) Put Option Spread for a net credit of $0.80.
(i.e. a total premium received of $80 per $1,000 of margin)

Our system remains in Buy mode.

SPX Chart - Bigger Picture

From the bigger picture perspective, the sideways consolidation pattern between 1320 and 1380 is continuing.

SPX Chart - Shorter Picture

In the shorter term, the symmetrical triangle (discussed last week) seems to be shaping up very nicely for a break out one way or the other. Support remains around 1320 although 1340 is minor support now and resistance is around 1400 with minor resistances at 1360 and 1380.

This past week the upper and lower trend lines on the symmetrical triangle held, which should set up an explosive break out. For next week, a close above 1360 will be positive and a close below 1340 will be negative for the market. With only 20 points to move and getting tighter each day, there's likely be some fireworks next week and we are biased for an upside break out.

From the perspective of our new position for March, we have a 150 point buffer from any downside moves in the short term, with some significant support points underneath also.

The quote this week is from Nelson Mandela, "The greatest glory in living lies not in never falling, but in rising every time we fall."

Annual Subscription Offer

If you haven't taken up our annual subscription offer yet, you can help your monthly returns by saving 20% on your subscription fees. By taking up our annual subscription offer, you get a year's service for the equivalent of $39.92 per month (or 20% less than the current monthly fee).

Please click on this link for your annual subscription: Annual Subscription.

Please contact customer support if you have any issues at: customersupport@stockbarometer.com.

Have a great weekend and feel free to email me at angelo@stockbarometer.com if you have any questions or comments.


Back to homepage

Leave a comment

Leave a comment