Market Update
Bulls gone wild…
The market is showing impressive strength in view of all the bad news. Tomorrow is D-day for the banks’ stress-test. With all the leaks coming out from the media, we’re not too sure what will be new news tomorrow.
Of course, looking at our current trades, we ‘re very concerned. As the rally goes on day after day, the probability of a pullback is getting higher. The worst thing that can happen to us would be to adjust our positions only to have the market moving in our favor tomorrow. But we should always follow our trading rules. Both our RUT and SPY iron condors have hit our mental stops. So we’re waiting for a good time to adjust our positions.
To keep you updated, we’re looking to roll up our RUT call spreads. We may get a chance to fill it today for a good price.
It’s a very difficult decision to be made with out SPY iron condor. SPY is set for a pullback or correction in the coming days. We don’t know when and we don’t know how sharp. But we do know that when that happens, we can close up our call spread for a much much lower price than what it is today. We may even lock in a small profit! But yes, we’re aware of the acute pain now. We know we have rules and we should follow our rules but there are times like now that it will seem more sensible to bend the rules. We shall see what happens tomorrow before we decide on what to do with our SPY iron condor.
We’re waiting for a fill for our RUT roll. We’ll inform you real-time once we get filled.
Good trading,
Gary
