Hello again friends, I’m back.
As I mentioned in my last blog post in October, 2010, I’ve been very busy with two new projects recently. I’ll tell you about them in a bit.
As my regular readers know I usually prefer to trade bearish. Well, I picked a good 5 months to start my new businesses and not trade as the market has been going straight up since December, until now.
I like to use exponential moving average cross overs on daily and weekly charts of the S&P futures in order to guess (predict?) general market direction. As you can see below the 5 day moving average has been above the 20 day moving average since December. (Click any picture to make larger)
Interestingly, you can also see above, in the November – December pull back the 5 day MA never went far below the 20 day. The recent pull back is much more severe with the 5 day well below the 20.
Monday I decided to get a little short delta and long Vega. Good timing considering Tuesday’s big decline. I put on an OEX May back ratio spread: short 10 May 580 puts, long 20 May 540 puts for a net credit of $3.35 per one by two spread. The P&L looks like this as of today:
I’m already out of most of this. From 20:10 to 6:3 left. I sold portions for credits of $2.80 and $1.80. My remaining 6:3 is bid at $0.25 and I have an order to get out of the rest at $0.05. Net profit so far is $1,585. Not bad for two days.
Going forward if the market decline continues will be looking for more OEX spread and some individual equities. I’ll keep you posted.
AND NOW, FOR MY NEW BUSINESSES:
The first business is up and running with new clients already. in April 2010 I decided I wanted my podiatry practice to be at the top of the Google Maps Search. Along with a web developer friend of mine we worked and worked and got me there.
I started seeing new patients right away. A year later, I’m up to about ten new patients a week from it. It worked so well, we decided to start a business to help get other businesses to the top of the local search engine results pages. Check out our site: www.bestmarketingnyc.com and try it for yourself. We are currently accepting new clients. We offer two months for free with a commitment to pay for just the third month and then it is month to month. If not happy, quit the service at any time. Feel free to ask any questions and contact me at firstname.lastname@example.org
The second new business is a topical medical for nail fungus. Being a podiatrist, I’ve tried every topical medication for nail fungus on the market with my patients. None worked that great so I set out to make my own. I took all the active and inactive ingredients that I thought worked best from other products and formulated my own medicine. I’ve tried it on dozens of patients, and while it doesn’t work for everyone, it worked on many more patients than anything else I’ve tried. I’ve also used it for non-fungal nail problems and it works there too. The medicine is made and I’m just waiting on my web site to be finished and the labels and packaging to be finished at the printer. Any day now… I’ll post the website here when it’s done!
Thanks for reading and I look forward to getting back to trading and sharing all my trades with you.
See you soon, Lawrence