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THE WEEK IN REVIEW Ceiling above tolerated oil prices by the stock market was raised this week. ---------------------------------------------------------------------------- Transactions made: June 13th, in the morning (see 06-13-05 11:42 AM thread) - liquidated short positions on bonds...

Liquidating my short position on bonds at 25/64 per option. Not much money but better than nothing, which is where I've been expecting the Jul 116 Put to go after identifying the programming error that made me select this position to hedge my long DJIA position.

Be careful. This week might be a dangerous one to be short because if one of the main factors behind the recent surge in oil prices was hurricane Arlene, which turned out to be much milder than forecasted, then I wouldn’t be surprised to see oil falling to around $51, and that might enough to...

THE WEEK IN REVIEW Deadlock. The recent spike in oil prices is keeping many buyers on the sidelines. ----------------------------------------------------------------------------- Portfolio Value: May 16th (at market open) 2 x JUN05 DJIA 10200 calls @ $1,650 = $3,300 2 x JUL05 30YR 11600...

Excellent journal Gapster. In theory, your system is very promising because it provides you with a lot of control: - You know when you're wrong and when you need to get out and - Your profits come in quickly when you make a right move. As a way to keep improving the system, I would be...

Thanks Choad for your comments. I have a confession to make about my original decision to buy Treasury puts. I never commented on why I shorted bonds because my decision was simply based on the output of a program I built to select that position as an hedge to my long DJIA position. I was...

THE WEEK IN REVIEW The stock market was very quick in moving from a phase where it doesn't fear the Fed anymore to believing that there is not enough growth. I would dump my long DJIA position if I believed that employment was slowing down but I don't think it's the case after looking at...

THE WEEK IN REVIEW A new stock market rally was interrupted a week ago on Friday, May 20th, and postponed until next week, after Memorial Day weekend. Bonds should have started going down but benefited from the interest of international investors, who are switching from European equities to US...

Erratum: The second to last line in the previous post should read 2 x JUL05 30YR 11600 puts @ $1,140.62 = $2,281.25 (with $1,140.62 instead of $1,625)

THE WEEK IN REVIEW The stock market's reaction to price and employment data released this week confirmed that there was a building consensus that the Fed is not alarmed by the healthy pace at which the economy is growing...

Consensus on the state of the economy has shifted towards a strong, accommodated, economic growth scenario. Recommended position: - Buy DJIA - Sell 30 Yr Bond Monday morning (05/16/2005).