SPX at 1513. Everybody are trying to call the top. This market will continue to grind higher in the following week, with perhaps, a small shakeout of new weak longs that will once again have us testing 1490-1505 area. But more likely than nominal levels, this is about relative levels, i.e. a 1% decline from high to low in a market that has around 3-5% more upside before the possibility of a larger correction, i.e. MA 20, MA 50 correction.
Continuing to sell equity volatility on any increase in premiums is a very profitable strategy in this environment, as long as premium does not reflect the fact that markets will be dead (prices set by central banks) for some time still. After a 1-2% decline I would be selling atm puts.
I still prefer selling the commodity spectrum (especially precious metals) on any upticks, and especially when we are close to "risk market highs", which we are at the moment. Then the long equities, short commodity trade makes a lot of sense to increase in position size. Also to take advantage of the super short squeeze we have seen in some fundamentally very weak names like RIMM/BBY, NOK, AMD, LXK, XRX, PHILIPS, FB, LOGI. Short these against long positions in the likes of GOOG, IBM, GE, MCD, PG etc...
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