Trading BEN, SPY – 07.04.2018

Written by schattenmann

Last week i had only 2 trades. I closed another 10% of my initial portion in my SPY hedge (for profit taking) @ 255,78 and i bought a first stake in BEN. This week had nearly the same “structure” like last week. It was a follow through up, down, up down moves which is unsettling people. Some “experts” do see a bear market, i personal do not agree. At the moment we are undoubtly in a trading range @ 253-286 levels. Market is doing his job and trying to find value and preparing the next move.

There are so many risks (geo political, trade war, currency wars, much to high valuations etc) and market is closing in the lower portion of that range @ 259 level. Nobody knows what will happen next (despite the fews who rule the world) so therefore we only have a chance to survive by sticking to our trading plan.

In 2016+2017 i traded a lot of naked put options, today i have not a single one. For me the market personality has changed, i do not trust this story that it will go on forever this long lasting bull market. My plan is it to hold my long positions because i believe that i own a good portfolio with some outstanding dividend paying companies. I am happy to have my hedges which pay out now (i had 2 years of pain). I slightly take money off the table because i do believe that there is a chance that market will drop more. If this happens i would like to “change” my hedges into money and buy more stocks which i still own. If market will go up and test the level of 280 area again i will sell more SPY (at least the portions that i have realized by taking off). Time will tell the complete story.

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