Market Journal and Preparation for Wednesday, May 14th

Brief comments tonight:

Tuesday’s consolidation session was weak. Mid Caps and Small Caps underperformed, which caused the breadth to be negative. Internals are not doing well, but nothing bad is happening on the price charts. I like our open positions. They are a good mix and they have the right balance of options greeks and neutrality.

Open Positions:

Long IBB
Short SMH
Long from 5.14 Ratio. Stop at daily close at 4.80 or lower.

Short 1 SPX June 06 Weekly 1875 Call
Long 2 SPX June 27 Weekly 1925 Calls
Long from -3 (9.50 X 2 – 22)
Long VIX May 15 Put from 0.85

Long IWM
Short SPY
Long from 0.5927 ratio.
Long IWM May 109 Put from 1.30

Long VIX October 20 Calls from 1.60

Long NDX May 30th Weekly 1600 / 1700 / 1800 Butterfly spread from 32

Day Trading:

If the market makes higher highs and internals are not very strong, it is a short for a few Spooz points. Watch the VIX on market strength – it could be a tell. Market is beginning to pay more attention to currencies. It means I have to watch the Yen and the Euro more closely. I have a slight bearish bias for tomorrow and no specific ideas, so my plan is to scalp or to find a day trade on the downside. I will concentrate on spooz only tomorrow. If I don’t see a good opportunity before the last two hours, I will not do anything.

Note: I day trade in my personal account sometimes, but when I manage capital, day trading is virtually nonexistent as a part of the portfolio.

Have a profitable day!