The Founders Group has nibbled once again on a QQQ and a SPY at-the-money call, February 18th monthly expiration. Eventually, we will sell a higher call to neutralize any potential volatility compression, creating a debit spread.
While I am inclined to manage the positions tightly and get to a break-even stop as soon as possible, it can also make sense to begin building a long position. I will contemplate that a bit longer. These positions are only about 5% of our $10,000 beginning year account.
While we don’t have an Algo buy signal yet, we are at a logical pivot point, and the risk to stop is minimal. The more confirmation one seeks in a turn, the higher the dollar risk to stop. I will keep you posted.
Going long here is certainly not for the faint of heart, but the pessimism is both rising and comforting. It is not extreme, though, which is why I want to keep plenty of powder available. I would love a straight capitulation and flush to get uberly aggressive. But we never get exactly what we want. The safe play has been the Monday/Tuesday pivot after Friday expiration. We add the Fed announcement Wednesday for some extra color.
For now, The market reminds me of watching the grass grow. It feels heavy and almost too orderly.
A.F. Thornton