Saturday, May 30, 2009

Weekly Update

Even after the run up from March the current chart patterns still look bullish.
Virtually all the technicals remain in a upslope with only minimal evidence of overbought conditions.
A continued advance towards the LR30 channel means could easily tack another 10% to current levels.
IMHO not a time to get aggressively short and I'm also inclined to minimize the butterfly exposure that I was enthusiastic about earlier in the week.
On the other hand, a rather conservative buy/write on the June GE 13s will still return 3% over the 21 days till expiration, which seems like a pretty good R/R at these levels.

2 comments:

mana said...

great great blog. wanting to review and run tests on your end of day systems, also using options to trade them. i've got a fair amount of posts to review searching the site for 'kit of parts', is there an eod system tag or keyword I might employ as well? also, any posts on options for this type of system you could recommend? thanks :)

bzbtrader said...

mana,
Sorry but I haven't organized all the posts into linkagable categories. If you do type in "Kit of Parts" , you'll find quite a few of my earlier posts on the subject, which began around May10 of 08 when I first began exploring using a small basket of ETFs in conjunction with a basket of sytems to minimize risk and at the same time produce a trading model that the average retail trader could manage with limited capital. I often daytrade options on the Qs and sometimes GE and, again, these posts are buried in the achives for you to find, if you're so inclined. Someday I may index all the posts, but for now the blog search function is the best available tool.