Extra Foam

For what its worth, the market is starting to feel frothy. Tops are a lot tougher than bottoms and the fact that this Friday is expiration does not help matters. I bought back some deep out of the money November SPY Puts that I was short. This is a baby step and makes me very slightly shorter.

3 comments:

Anonymous said...

have u seen the sept month end open short interest in the nyse. basically the s&p went up 10% and open interest did not budge from record highs.

Tsachy Mishal said...

Most of the indicators I follow are in the too much bullishness camp, although are not yet extreme.

I like to stick to the indicators I always use because one can always find an indicator to back their view. This way my biases will not get in the way.

Anonymous said...

maybe there is hi short interest and massive put selling to hedge, ie vxx/vix collapsing. and that's why nobody's freaking out on their short stock positions. sentiment indicators show options activity, if sentiment is bullish, maybe they're just extremely hedged.