05 May 2009

Portfolio Changes

Sold out my TZA position on Friday and today, after the S&P crossed over the 875 resistance level with some gusto. Yes, I should be using the underlying Russell 2000 chart instead of the S&P, but the failure of the major resistance level on the S&P put me over the edge.

Sold for an average price of $28.89, from a cost basis of $41.83, for a loss of 30.9%.

However, I replaced some of the underlying TZA stock with some May $25 TZA calls at $3.70.

Bought some May $7.50 FAZ calls at $1.15.

Needless to say, the afternoon market surge knocked the value of these positions down a wee bit. But tomorrow's another trading day.

And related to absolutely nothing, it seems that 91% of the S&P 500 is now trading above its 50-day moving average, as shown in the increasingly ridiculous chart below:

No comments: