Friday, February 1, 2013

What goes up...must go higher?

The markets continue to ride this bull run higher. As we all know, the market is just one big auction where buyers and sellers take turns being in control. But there are times when it seems like one side or the other takes a longer term than they deserve. It is times like these where the market seems one sided. But as they say, the trend is your friend and being long is working in this market.

As I have been saying over and over again the last few weeks since I started blogging again, the only real positions that I have been able to initiate in this low vol environment are long dated high yield dividend plays with covered calls. I am slightly short some SPY's via a short call spread, but my short delta exposure here is very small. I don't plan on adding to this position until we get signs that the market is ready to let the bears into the driver seat for a while.

This morning we are going to see markets gap higher as the overnight markets trade higher and a well accepted US jobs report. I think the report said the private sector added some 157,000 jobs with the unemployment rate at 7.9%.

I will admit that its been a struggle to sit on my hands. But it is honestly hard to initiate new longs at these levels. I did however put on a covered call position in AT&T (T). I know currently have about 40% cash in my portfolio.

Don't get emotionally attached and don't try to force a position. The market doesn't care what your position is or what you think.

Good Luck Trading!!!

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