Morning Update: April 3, 2014

The Dow was up 40.39

We are now only 15 points from ALL TIME DOW highs. Yesterday I mentioned in the update that I expected us to do nothing and sit perched within striking distance of the all-time highs.

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AAPL closed up 0.90 at 542.55

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The VIX closed down .01 = 13.09

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Down 0.62 at 107.27

POT people: Recall that we are long the risk reversal that kicks in at 107.5 on the downside. 

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GLD Closed up 0.93 at 124.32

SLV Closed up 0.128 at 19.188

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Tesla was up 13.32 at 230.29

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Closed down 0.18 at 24.01

POT people, remember that we are still long 20 cts of the April 22 calls. 

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Yesterday

A perfect placement for a new record day today. The Dow just meandered around and closed a little higher, sitting 15 points below Dow record levels. I know that the Dow is almost nothing with the professional group, but the general public still equates the markets with the Dow. If that is not in record territory it doesn’t matter if anything else is.

Today

The Dow is in the PERFECT place to make all time highs. Add to this the markets were within 0.06 of said highs, but had sellers come in adds to the bullishness – believe it or not. Sure, sellers coming in at the dead-highs is predictable, but we didn’t sell off hard. And if you remember that these people will have to cover at some point, they may be the same people squeezing this market to new highs.

If not done today, I am not overly concerned. There is NO good news out and we keep climbing. We have a New Fed chair that has not had her test yet, but is saying the soothing things a horny market wants to hear. Yellen could charge $1.99 per minute to talk about a soft landing and have 1 million traders listening.

So if not today I would be surprised. We are in uncharted territory on the SPX, OEX and only 15 points away in the Dow.

KEEP IN MIND

You will likely hear the exact same type of news in 2, 3 or 4 months, and it will cause the Dow to fall instead of climb. The market does what it wants to do regardless of the news. The news is rational, not the reason. 

POT is held each Wednesday night at 7:00pm eastern.

POT people….

Last night we discussed for 2 hours and 20 minutes:

• Current hedges

• Getting longer

We got longer yesterday near the middle of the day. We also added another hedge.

• Hedge comparisons

• etc.

Contact the office at 1- 855 – RWT – 0008 for more details. 

Too True To Be Funny

(Never a joke, but always funny)

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