Trading AXP, T, M – 30092017

Written by schattenmann

Axp and M were bought back with profits. I am in M and will look to sell more options next week. Although all retail business is challenged by the “amazoning” moments and see a shift in the core business, they are all giving efforts to find the turnover and get back on the path of groth. We do not know if they will succeed but M seem to be a lot undervalued and has a blended P/E of 6,6 and a dividend yield of 6,9 % which is looking attractive.

I sold new options on T with APR 18 expiration and would like to buy that company at 31/32 levels if it ever comes to there.

The general market (SPY) is closing again at new ATHs and looking strong bullish. Although the VIX is very very low (9,51) we should keep an eye on the volatility index of the Russell 2000 (RVX). The Russell 2000 made also a new ATH and closed there but the RVX is increasing and not decreasing. If the broader market (IWN) and the RVX are simultaneously increasing there can be (but must not) something wrong.

We do not know what market will do next but there is some probability of a retracement in the first half of October. If the market retraces, the highest probability of success is to buy the dip. The trend is too strong that it will turn immediately to the short side. If the bulls loose power the highest probability is a sideways market, but time will tell the story.

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