S&P 500 Sector ETF Momentum Rankings

S&P 500 Sector ETF Long-Term Momentum Rankings:

$XLU $XLRE $XLP $XLV $XLY $XLK $XLB $XLE $XLI $XLF

Short-Term Momentum Rankings:

$XLU $XLRE $XLP $XLV $XLK $XLY $XLE $XLB $XLI $XLF

 

I decided to have a chart template for collars and a chart template for scalping. I'd go scalping except I filled up my portfolio with collars. Oh, well, I think I'll eventually pay off my LEAPS puts and make profits.

 

I decided to use the scalping chart all the time because there's no use in having the ability to read a chart and not using it.

 

Gin a body meet a body
Comin thro' the rye,


Gin a body kiss a body,
Need a body cry?


Gin a body meet a body
Comin thro' the rye,


Gin a body kiss a body,
Need a body cry?

 

The middle PPO is used as a 14-day MACD and for scalping and for pointing to the longer-term bullish and bearish PPOs.

 

Collars are basically a long strategy, and this is a bear market. I could hold those collars over two years and still not get the LEAPS puts paid for by covered call sales. There is such a thing as a reverse collar if you're allowed to sell short, but why mess with stocks/ETFs at all? Stocks/ETFs are hot potatoes: don't own them.

I took my beating and bought back the calls and sold the stocks/ETFs and am out of the collar business and am going to trade by my newfound chart reading ability.

 

I put in a Fast Stochastic to encourage me to scalp at appropriate times.

 

After all this volatility, I've come to believe in neutral delta and straddles and strangles and guts.

Buy anything with %K higher than %D between 0 and 50 on the 9-day Slow Stochastic, sell anything with %K lower than %D between 100 and 50 on the 9-day Slow Stochastic, but hedge your bets with neutral delta.

 

I revised my trading system. I was going to go delta neutral, but I read that's just for when you're hedging and when you don't know what you're doing.

 

I still am attracted to the idea of a neutral delta portfolio. I figure the delta ought to be smarter than I am about what to do. I have settled on a long guts strategy. I saw it suggested you sell options against your losing legs, but that doesn't look like it would be worth doing. Just roll them ahead and eventually they ought to be profitable. Having both long puts and long calls keeps the money from getting away from you.