A cheerful morning to you all! I wanted to bring you up to date on my own positioning. I sold my SMH calls yesterday afternoon at a decent profit (and before the end-of-day price plunge, which was nothing but good luck on my part). I still think semis could be in for a good counter-trend rally, but I honestly didn’t want to stick around.
I also covered my way-too-large XLU short for great profits, although I have retained my NEE puts for the longer haul. NEE is a major utility, so it’s a similar trade, and I think the setup is a beauty.
Yesterday, I lightened up some on my DEV and COP energy shorts, but those stocks just keep falling! Below is COP, which is a magnificent pattern. I’m just going to hold on for the ride at this point, since the President has made clear his intention to beat crude oil prices down.
Wendy’s (WEN) is a January 2026 put position of mine, and the diamond pattern on this one is exceptional.
My one bruise this morning was EFA, against which I had a medium-sized short position. I got stopped out instantly. I’ve got to say, seeing EFA at a new lifetime high is a bit of a surprise!
However, domestically, I think we bears are in terrific shape, considering how this price channel for the /ES has quite plainly been broken. My trouble is that I’m running pretty thin on great setups, so I might have to content myself with a big cash position, which I do not like.
