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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
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
Tues May 9th: Did a pairs trade: long IWM, short SPY
2/26: MACD turned positive
2 / 12 -16: positive divergence again. Solid Up-move
Jan 2016: high imp volatility - selling premium in NDX & SPX futures - trying to keep position deltas neutral. (delta low, theta high).
11/16: nice bounce off the 38.2% FIB level.
10/1: positive MACD divergence
**We've formed a potential Higher-Low on the Daily SPX. The MACD is forming a Positive divergence. We have a possible low.
1/22: broke the downtrend. 38% fib is just above
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