Happy St Patrick’s day to everyone. The market continuing up is enough to turn most of us green. A blow off top is under way in my humble opinion. Still, income trades can be started and adjustments planned. If the market continues to cause adjustment after adjustment to your positions consider exiting the trade all together and re entering with a trade that is more market neutral again. Sometimes stopping and starting over is as effective and cost efficient as multiple adjustment. Times like these are the hard part of income trading, take notes, learn and survive to trade another day.
{ 5 comments… read them below or add one }
hi mark,
what do you mean by “A blow off top is under way…” ?
i’ve never heard that expression before.
RUT has made me green. That is for sure.
Hi Mark :
I love the BLOG in here a lot. I read it everyday even before look at the market or login thinkorswim. May I have a comment in here? English is not my first language. When you said “The market continuing up is enough to turn most of us green. ” I wonder what does “green” mean in here? Green is a good and safe color. For sure better than Red. Does it mean good sign? If we, as human being, turn green , it is not good.. . Does it mean not good?
Hi Fushan,
Turning Green is in a bad sense here. It was also a play on words since the 17th is St Patrick’s Day when you typically wear something green.
JCig, a ‘Blow Off Top’ was coined by William O’Neil I believe. It is the last run of a cycle which is very fast, and overdone.