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Market Breadth Analysis
Get a Price Discount & Reduce Risk -- by combining options and selling some premium.
Options Income Trades - Short Strangles on SPX (/ES futures) when volatility spikes; Lately have been selling premium in the Bond Futures (ZB), Gold (GC) & Oil (CL) because they're less correlated to stocks.
Market Breadth: McClellan Oscillator, Summation Index; $VIX , Put-Call Ratio, Advance-Decline, $TICK, $TRIN.
** FUTURES -- selling premium (short options for income) in Bonds ZB: and Crude Oil CL; some tail-risk hedges are in place.
PORTFOLIO HEDGE: long QQQ March 168 Puts @ $4.40
long:JD, KWEB, NTES, EEM, ITA, NFLX, AAPL, BIDU, ALKS, GILD, BX, KBH, /CL - crude oil
2016-2017: Selling Option Premium in Futures: Gold (/GC); Bonds (/ZB); Crude Oil (/CL); S&P's (/ES).
Selling Strangles, Puts & Calls -- Managing the Risk with Delta Hedging.
April12, 2017 - Volatility has been spiking recently. Safe-haven assets; Gold, Bonds, Yen are rallying.
$VIX measures the implied volatility of options on the SPX index
$VVIX (this chart) measures the implied volatility of options on the VIX index - (these are priced off /VX futures).
When this is high people are buying protection with VIX options.
11/18: When Volatility is LOW, I'm buying SPX Calendar Spreads (Delta .40, short 30 day/long 60 day)
exit @ +10%.
Breadth is strong.
Watch the 80-line (on the Stocastics 60 period) for the next sell signal. This is a very good signal.
**Slow Stocastic, 60 period: this is a great signal for when to lower risk or add risk in a portfolio. **
Aug 17th: Getting very close to a sell signal
Aug 10, 2017: McClellan Oscillator is OVERSOLD; also Sto 14 is oversold
4/1/17: Market Breadth is still strongly positive. Holding Longs
'The Summation Index is a breadth indicator based on Net Advances (advancing issues less declining issues).
When market breadth turns down (declining stocks are increasing relative to advancing stocks), it's a good time to lower risk.
Aug 14, 2017: Breadth is still solidly positive .
Measures market breadth: Watch Zero Line for hedges.
Hedge portfolio when Summation Index is below Zero
'The Summation Index is a breadth indicator based on Net Advances (advancing issues less declining issues). The Summation Index is simply a running total of the McClellan Oscillator values. Even though it is called a Summation Index, the indicator is really an oscillator that fluctuates above and below the zero line.'
August 14, 2017: NYMO - (Mcclellan Oscillator) got very low.
July/August 2016: We have a Monthly volatility squeeze breaking to the upside:
3/7: Portfolio Hedge: copy and paste this link:
4/1/17: Consolidation throughout March
4/23 overnight: closed hedges Sunday night, after the French election
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