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Saturday, November 6, 2010

Wow! That's All I Can Say.

- I'm glad to have followed my indicators and reentered long positions at 118.4 and 119.48, after having exited at 116.6. This market is exceptionally strong! That having been said, SPY is in very overbought territory, so I'll be vigilant about seeing any bearishness in the indicators.

-Implied volatility has dropped to 16.4, which is closer to FVE value of 15.3. Both values are at very low levels, so I'd be vigilant as well about developments in the market that could spike volatility back up. I'd not be adding to existing short gamma/vega positions.

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