After setting the lows at about 1850~ few weeks ago, the market continued to move up in a positive week. There is still fear in the markets, as the implied volatilities are still high. It is hard to know if this is a bull trap or not, but this doesn’t look like it is a good time to enter the market – A better time would be after the market had a chance to retrace. It is a good opportunity to initiate a short position (if you believe the markets are headed down in the long run) with a tight stop.

I used the high IV and relative rapid increase in price to hedge my position and sell OTM calls and buy some put calendar spreads for protection.

$SPY is on resistance after a sharp bounce

This week the dividend capture list is short since it is relatively not a good time to enter into many positions.

Here is the current market sentiment:

For our dividend capture strategy,we look for good companies with over 3% yield. The companies distribute dividends in the next 10-30 days.  You can follow us on Twitter,  where we often publish more trade ideas.

The dividend capture watch-list:

Charts:

(4 Results. Charts are visible on site and not in email)

 

 

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