Wednesday Trades

WED (11/17) : [take profits into strength. don’t hold weakness]

3-year treasury yields open up 5 basis points higher than yesterday. All other treasury yields open lower.

CME showing great relative strength. While the market was in a consolidation it gained throughout the day.

Progress
IEF – Hedge had Delta (size) difference of less than 15%; nearly 1-1. The benefit of still holding the neutral hedge is that it reduces Theta (time decay) on the long PUTS to only 9% of their original value.  It’s held for free until there is a short term trend change downward in the 10-years.
S – Good volume on the DEC10 4 CALLS. Added to long.
OI – Good technical level. Added to long.
MAR – Added to short.
MELI – Looking good.
CME – Looking good.

Watching
DO – Possible entry soon (TA).
GLD, SLV – Lots of selling due to margin requirement increases. Look for oversold levels.
S, OI – Pattern breakdown would indicate an exit.

Out
SDS – Took profits on anticipated market strength.

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One Response to Wednesday Trades

  1. Pingback: Setups – Week of 11/29 « Zevon Investments

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