Category Archives: Broader Market Analysis

Dear Everybody! I started this blog in November 2010 when I was a postdoctoral research fellow in Physics. My main goal was to increase our understanding of financial markets and trading via exchange of trade ideas and market commentary. I … Continue reading →

Dear Everybody! We have benefited a lot from the ~ 13% rise in S&P500 index from the beginning of this year to the beginning of May. Sell in May and Go Away? From the intraday high of 1415 on May … Continue reading →

Happy New Year Everybody! Wish you all a fantabulous year ahead. We had a great year in 2011 in terms of trading (even though the S&P500 index closed Flat for the year). Hope we will continue to be profitable in … Continue reading →

Exactly a week ago, we had initiated a long Straddle position on SPY (Dec Quarterly) with strike price 124. Our original cost was 7.04. The straddle currently has a market value of 7.15 (see above). Below is a chart of … Continue reading →

On November 28, we took off our hedge (VIX Call spread) and enjoyed a nice rally over the last three trading days. VIX has dropped to 27.75 at the time of writing this post. Current Thesis: S&P500 is trading close … Continue reading →

Greetings! Hope you all had a Happy Thanksgiving Break. On Nov 11, we had initiated a 30/40 Call Spread on VIX for 2.25. As of the close on Friday, VIX was trading at ~ 34.40 and the spread was worth … Continue reading →

As we discussed yesterday, the market is at a very critical level right now. Although some good news out of EU can help fuel the next leg up, we have to be careful also about the potential downside. Since the … Continue reading →

In my last post, I discussed the 1225-1275 range. In one day of trading yesterday, the market went down from roughly the top of that range to the bottom. The 1225 level is still holding. So we are still net … Continue reading →

We discussed in our last post how the market was ripe for a breakout. After the breakout from the 1225 level, market has retested that level on Tuesday, and has rallied over the last couple of days. This is a … Continue reading →

We have witnessed (and were able to trade) the range-bound movement in S&P500 over the last couple of months. S&P500 closed today near the upper end of the range. Can we break higher? Or are we headed back down? We … Continue reading →