Nothing yet announced. They are trying to pass a financial reform bill (led by Senator Dodd) and keep emphasizing it's passing on CNBC. One of the clauses proposes is “n addition to addressing concerns over how to maintain the financial system's stability, the bill takes aim at regulating the risky financial instruments that have been blamed for contributing to the financial crisis and protecting consumers from risky financial products that have also been blamed for their role in the crisis.” Anyway, I will keep you posted if I hear anything more but I just have this feeling that they are going to ban the 3X ETFs at the top. Here is the most recent article I could find: http://www.reuters.com/article/idUSTRE62D1YI201…
Alright. Just trying to get a grip on things. Thanks. Wonder what they are going to announce with this financial regulation – probably that all 3X ETFs have to be liquidated.
there is a 87% probability that AAPL's current uptrend since 1/09' is it's terminal ATH in it's current lifecycle, so where ever it stops will be highly ritualistic, I haven't had a chance to look @ terminal values : date, you won't see AAPL straying 10%+ from it's reg. limit
it's terminal de-leverage pt. is 134.45, all long positions above that number will eventually become underwater
If you think we are going to 1250 by late summer, then a vertical call spread would be the safest play. You could buy the 1150 (which is “in the money now”), and sell the 1250.
You would want the market to go up to 1250 before they expire, and of course you don't want the market to go down below 1150.
I'd rather stay out the market now, as I still see some selling coming soon. The choice is yours of course.
Question for you: I think we are headed for 1225-1250ish by end of may (just my 2 cents) but I do think we get a big correction some time between August and November. I'm a stock and ETF guy more than an option guy but I know you like to use options. Which SPY puts would you buy for that correction?
More recent article from today here:
http://www.reuters.com/article/rbssBanks/idUSN2…
Nothing yet announced. They are trying to pass a financial reform bill (led by Senator Dodd) and keep emphasizing it's passing on CNBC. One of the clauses proposes is “n addition to addressing concerns over how to maintain the financial system's stability, the bill takes aim at regulating the risky financial instruments that have been blamed for contributing to the financial crisis and protecting consumers from risky financial products that have also been blamed for their role in the crisis.” Anyway, I will keep you posted if I hear anything more but I just have this feeling that they are going to ban the 3X ETFs at the top. Here is the most recent article I could find: http://www.reuters.com/article/idUSTRE62D1YI201…
i don't N.E.W.S. so what are they doing banning inverse ETF's?
Alright. Just trying to get a grip on things. Thanks. Wonder what they are going to announce with this financial regulation – probably that all 3X ETFs have to be liquidated.
there is a 87% probability that AAPL's current uptrend since 1/09' is it's terminal ATH in it's current lifecycle, so where ever it stops will be highly ritualistic, I haven't had a chance to look @ terminal values : date, you won't see AAPL straying 10%+ from it's reg. limit
it's terminal de-leverage pt. is 134.45, all long positions above that number will eventually become underwater
Over valuation + overbought + yield pressure = -10% over several weeks…. ***IF*** historical pattern holds.
The only thing missing is trend confirmation….. tick tock tick tock….
If you think we are going to 1250 by late summer, then a vertical call spread would be the safest play. You could buy the 1150 (which is “in the money now”), and sell the 1250.
You would want the market to go up to 1250 before they expire, and of course you don't want the market to go down below 1150.
I'd rather stay out the market now, as I still see some selling coming soon. The choice is yours of course.
A quick note: The topping process continues. We may have reached the apex already. Short confirmation pending. No confirmation, no action.
Hey Red,
Question for you: I think we are headed for 1225-1250ish by end of may (just my 2 cents) but I do think we get a big correction some time between August and November. I'm a stock and ETF guy more than an option guy but I know you like to use options.
Which SPY puts would you buy for that correction?
Thanks
Think Carl got some inside info from his cronies at GS!