Market Musing 2-28-2018, Bitcoin and Dollar Range Bound, Higher Market Volatility, Selling Puts
Back from travels to Minnesota and New York. Missed writing this weekly musing.
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https://s3.amazonaws.com/cherry-picks-s3-bucket-newsletter/live/18_02_27_tastytrade_Research.pdf?mc_cid=f067162988&mc_eid=e9e24bad07
https://www.tastytrade.com/tt/shows/wdis-options-101/episodes/brittanys-story-01-03-2017High Volatility!: VIX > 18, US Markets have bounced off the lows of .February 9. The VIX has dropped dramatically but is still in high volatility territory. Selling Puts, Jade Lizards, Ratio Spreads and Butterflies have all worked. After taking off hedges during the crisis, I am slowly putting on more Risk Twisted Spreads in SPY and short term Put Calendars in the RUT.
E-currencies vs US Dollar: Bitcoin has bounced up from the $5880 bottom and is now range bound between $9,000 and $12,000. This is a traders environment, where you can buy a small positions and take profits quickly. Are you mining cryptos in private wallets yet? The US Dollar is range bound between 88 and 90.5. Will we see inflation in the US this year?
https://www.coinbase.com/charts?locale=en-US
https://www.worldcoinindex.com/coin/steemFed Reserve Impact - New Chairmen Powell Testified in Front of Congress yesterday. Did he cause the Dow to drop 299 points and SPX to drop 35? Why is the Fed Balance Sheet getting larger while they are normalizing monetary policy (ie. reducing Quantitive Easing)? With higher interest rates on the $4.4+ Trillion, how much money with the Fed make in 2018? Check out their quarterly reports using this link.
https://www.federalreserve.gov/monetarypolicy/quarterly-balance-sheet-developments-report.htmTRADE Log: VIX > 15 High High Volatility Trades are back
- Long GOLD, BITCOIN
- Jade Lizards, Broken Wing Butterfly, Dynamic Iron Condors
- Sell Puts
- Risk Twist Hedges
Videos:
Doc Severson - Theotrade: Market Reacts to Chairman Powell With Key Reversal
Interesting your post.....
The writing is clear and easy to understand @traderdad
ibnuhubban, Thanks for the complement. I use this musing to collect my trading thoughts for the week and those who are following me. In my home town Indianapolis, we run a weekly meetup in the morning with retail investors. In the afternoon, I teach an options trading class at a local high school. My true joy is to do a weekly hangout with 2 of 5 daughters.
good job ... good luck and have a nice day :-) :-)
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If you are interested in technical analysis then check out my blog and consider following.
stepanh, Excellent content. Following you now... TraderDad
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appreciate the resteem and upvote. Following you now..
I really like this post traderdad!
five34ab, I actually think Bitcoin and the Crypto space is the new safetry trade. In the past, Gold Silver and/or Platinum were all safe trades as the Markets sold off. It seems that Bitcoin could be the new "Gold" Safety play. Hoping the rest of the Crypto's follow Bitcoins rise.
Definitely agree. I view Bitcoin as a more convenient gold.
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