You will have to pardon the gloating found on this blog earlier in the day.

Taking the seasonality strategy out for it’s maiden voyage and closing all three positions having hit my profit target provided a welcome sense of accomplishment.  Sure, my brazen nature may have irritated the Stock Market Gods (though, let the record state that I did proclaim victory in their honor); therefore I’m likely to eat a big old mouthful of crow at some point in the future.

I’m just superstitious like that, so I’m going to cool it.

Nevertheless, I give my thanks to the iBC team for providing me with a forum to present the idea with everyone via this blog.  In my opinion, the takeaway here is in the process of devising a trading plan.  I love this shit…and am always trying to build upon my knowledge in an effort to extract money from the market.

Without a doubt, the part of the plan that has (rightfully) drawn the bulk of the criticism has been the lack of protection to the downside.  Having locked in realized gains, I think I’d be pretty fucking pissed if I watched all of those gains (and much more) get wiped out.

In the remaining days of this month, I’m going to mull over an amendment to the strategy that will cut losses at a certain point.

I cut loose another 1/3 of my $XLF July 14 calls today at 0.72 when the price of the underlying hit 14.50.  This sale has taken my cost basis is down to 0.29, regardless I’m going to get the hell out of these if things start to look dicey.

In other trades today, I took a fairly small position in the weekly $VXX 17 calls, getting in at 0.46.  Should the market shit itself tomorrow and/or Thursday, these will appreciate generously.  If not, I’m still about 75% long and will look to build upon the quick unrealized gains I have experienced in $RGR and $SAVE.

I mentioned in a comment on Rhino’s post that a muted response from the market (i.e. ‘digestion’ of recent gains) would probably be the most productive course of action if you are bullish.  Well, other than a complete and total conflagration of the bears, of course.

Lastly, there goes $THLD doing what it has done since mid April.  The price of the stock has bounced between 6 and 7.5, but I have repeatedly extracted profits out of this sucker, building a base position to the point where, after the buying last week, it now houses almost 20% of my invested monies.  If this thing ever breaks out of this range to the upside I’m going to be very excited, though that would be icing on the cake.

For now, I’m having fun just playing the ups and getting lighter during the downs and then reloading and doing it all again.  Eventually it will stop working and the fun will end.

My best to you all.

-EM

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