WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR MeWe PAGE!


The market rallies again

Account Net-Liq: $$5,340.51
SPX value: 3,251.57

It is becoming quite frustrating that the market rallies again. It is weird. Everybody is pessimistic, everybody says that we are in a recession, we have new COVID-19 spikes and everybody is worried, yet the market rallies hard?!?

Did everyone forget about the COVID? How come we sold off hard in March during the first outbreaks of this (in my opinion) fake virus bogus and today, when everyone is, AGAIN, talking about shitting down the economy AGAIN, and the market doesn’t bother about it anymore? Why no one is scared today?

I opened a few new trades using XLE butterfly and had to roll my SPX call spread higher again to keep it away from this raging bull no one believes in. It is totally outstanding that it completely defies anything I keep hearing and reading out there. Well, I guess, the best approach is to take it as it is and ignore all the naysayers.

Last night I watched Linda Raschke’s video on Stock charts. I didn’t finish it as it was too late, but she pretty much predicted that this rally could continue just because of this pessimism, too much money out there sitting on the side. She pointed out M1 money supply spike but the money has not been used to invest so the supply is sitting somewhere… not in the market. This supply will be used to pour more money into the fire one day propping this market higher. I agree with this logic, though.

It is really outstanding how strong rally SPX shows. But it seems, this is driven by only a few tech stocks as almost all my other holdings are losing big. IWM is also losing (-0.33% down as of now). Everything is red but SPY (SPX).

It is tech stocks propelling SPX up. It is crazy:

SPX 2020

As you can see, IWM is in poor conditions compared to SPX. Most of the stocks are red:

SPX 2020

Here is a picture of today’s rally. I had to roll my calls up again and it seems I will have to roll them up again tomorrow:

SPX 2020





Leave a Reply

Your email address will not be published. Required fields are marked *