Saturday, January 28, 2012
Thursday, January 26, 2012
Wednesday, January 25, 2012
Hedging NQ
As I stated in a different post, I wanted to hedge part of my short NQ position and I thought this 3 year chart of ES-2NQ was interesting. Even though I think both are overextended, ES-2NQ is at the lower end of it's range. By buying ES versus the short NQ position I am hoping to hedge myself against further increases in NQ but gain if the relationship reverts back to the mean. I went long ES at an average of 1314.75 last night which was near the high, and this position is losing now but the overall position is improved as NQ has also come down a bit from it's highs last night. If bonds increase I plan to add a short there as well as an additional hedge.
Monday, January 23, 2012
Wednesday, January 4, 2012
Trading ES/ZB
Swing trading the ES for the bigger moves has been working okay (at least better than the tiny scalps for a net loss after commissions I had last time I posted). I was able to ride 3 contracts from 1250-1279, sell two of them, and then buy them back a little under 1265, so right now sitting on 3 long ES again.
I want to add short ZB to the mix but not quite sure how to do it. I want to be short ZB, but if I am short ZB and long ES then I am afraid I might be getting too big and setting myself up for big swings in the P/L. If stocks and bonds offset each other then it would be best to be either long/long or short/short - but I have no interest in ever being long ZB at these levels. That being the case, it seems that I need to wait until I want to go short ES to short ZB, which probably won't be until ES gets to 1300 or so (if that happens) - but if that happens I presume ZB will be a good deal lower than it is now. Any thoughts?
I want to add short ZB to the mix but not quite sure how to do it. I want to be short ZB, but if I am short ZB and long ES then I am afraid I might be getting too big and setting myself up for big swings in the P/L. If stocks and bonds offset each other then it would be best to be either long/long or short/short - but I have no interest in ever being long ZB at these levels. That being the case, it seems that I need to wait until I want to go short ES to short ZB, which probably won't be until ES gets to 1300 or so (if that happens) - but if that happens I presume ZB will be a good deal lower than it is now. Any thoughts?
January Trade Updates
Will be closing out a bunch of January positions in the near future - started today by closing the short JPM Jan 27 puts when price came down to a nickel. This trade worked well,started as the short Dec 29 puts which were rolled down to Jan 27 for a credit, so in the end it was good for about $2800.
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