Wednesday, March 12, 2014

IWM / QQQ Hedge Add to

I don't see very good or strong intraday divergences right now that are suggesting significant downside or pullbacks that I like to use open call positions in to, you know from earlier I want to increase the size of the hedge which was a very small position yesterday long QQQ/IWM calls.

I do show a little something in futures, a intraday VIX futures 1 min positive, NQ negative and slight TF negative on the 1 min, and a very small $AUD negative on a 1 min, but it's more or less a wash as the Yen too has a 1 min negative.

The 5 min charts are stronger and more important and they are leaning toward the market getting ready to start what will probably be an afternoon ramp, I'd prefer to have the calls in place before then so I decided to add half of what I intended, if there is an IWM/QQQ pullback and the intraday charts are positive I'll add the second half, which will bring these (at full size) up to normal option position sizing, but the leaning is still net bearish because these are only 2 long hedges vs several puts like NFLX, PCLN, XLF, some leveraged short ETF's etc, the point is the whole of the tracking portfolio still leans about 80% bearish after the calls are at full size.

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