Smoking Securities

Half Baked High Finance

Posts Tagged ‘BXM

Buywrite vs Index ($BXM : $SPX)

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BXMSPX090712BXM:SPX compares the relative performance of selling S&P 500 covered calls against holding the equity unhedged. When buywriting outperforms the underlying index, it implies that the market is weak because option writers are keeping premiums as strikes remain out of the money.

Since the credit crisis began in late 2007, the relative strength of BXM vs SPX cannot be denied, as it continues to trade in an uptrend above a rising 20sma. The pattern being formed is similar to late June 2008, as well as December 2007 and 2008. With plenty of bearish signals out there, stay vigilant and live to trade another day.

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Written by chucklesamadeus

July 12, 2009 at 10:36 pm

Market Glance

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The 5 least correlated positive return ETFs show numerous markets cracking critical support and making new lows.

S&P 500 indicators are bearish across the board.

The market remains fahklempt, buyers beware.  The only positive things I see are emerging markets holding above the November lows, and Treasuries failing to make new highs, despite ominous news from every channel on the planet.

I’ve avoided stress by staying in cash, day trading and acquiring a girlfriend.  Cash remains king, and while there are remarkable intraday opportunities, my focus is elsewhere.  To paraphrase Han Solo, “what good is money if you ain’t around to spend it?”

Written by chucklesamadeus

March 4, 2009 at 1:16 am

Posted in BPSPX, BXM, DBC, EEM, IWN, IYR, SPX, SPXA50R, SPXHILO, TLT, UST, VIX

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