Abra Cadabra

It seems that the early April hocus pocus is working thus far. There is actually a perfectly reasonable explanation for the seasonal strength in April. It is the height of tax refund season, some of which finds its way into the market, and it is the IRA/pension contribution deadline. Tomorrow is another seasonally strong day, after which seasonality turns neutral for a few days. We then get another burst of strong seasonality mid-month.

If we get another strong day tomorrow I will consider rolling up the strikes on my SPY Puts or writing covered calls against longs. I would not get too excited about the market as I believe things will get a lot rockier by next month. For now I'm staying at the party with an eye on the door. Have a good night.

No comments: