TLT has fallen about 2% yesterday from its Friday close sitting at 126.89 from a close of 129.5 on Friday. We closed most of the TLT portion of the SPY/TLT trade on Friday during the rise and we’re left with about 25% of the TLT portion. Not a great day for TLT but the SPY portion made up for some of the loss on the TLT. I gather we should still be able to get out of this thing at break-even or slightly below. We’ll see. TLT has about a 30% chance of double-bottoming at 126. Markets are getting over bought on many indicators so we may see a bit of strength in TLT as we start to stall in the markets and as participants start to accumulate TLT as they usually do during these prolonged topping or perceived topping patterns. After consecutive ups, SPY may spend a few weeks in a range. During this phase, TLT generally does go up because more and more people start to expect a pullback (during bull markets) buying bonds to hedge an expected pullback is a better way than to short SPY directly. Going to give what’s left of the trade a bit more time. SO hasn’t closed their trade either (100% of it). I’ve closed 70% of it.
I closed most of my MIC from February. It did well. Happy with it and the new parameters.
The MIC for March is doing well. RUT isn’t really moving all that much which is great for the trade. No adjustments required. I did enter a small amount of call spreads at 1243 yesterday and added the corresponding put spreads after it fell a bit at about 1237. As well, when it rebounded to 1242 I put on the debit spreads. When I leg in I do it with very tight stops and only small portions. If RUT proceeded to 1246 I’d have immediately added the put spreads.