Exec – Spec
2016 KDELTA Stocks portfolio update 06-02-16
2016 YTD KDelta P/(L) = +0.72% vs SP 500 Index = +5.20%
SP 500 benchmark is testing its June futures contract highs although still well short of its record cash peak almost a year ago. Bullish sentiment from the past 2 weeks has now reversed to Bearish on the 5 and 10 day option sentiment ratios, while the longer term sentiment requires a couple more weeks of elevated prices before turning negative. AAII Bullish sentiment is still only a week out from a very low Bullish read.
A strong employment report Friday close to 200,000 (175k+) jobs created with unemployment ticking lower may cause a quick correction in stocks for fear the Fed will tighten rates on June 15th. Current probability given to a June Fed rate hike is just 20.6% and falling. Consensus rate hike odds may be underestimating the Feds urgent desire to raise rates at the first signs of renewed 2016 growth. The Fed has been telegraphing that a rate hike is coming soon! A number under 150,000 jobs would continue the recent trend of negative economic data over the past month and for most of 2016 to date.
Each position= 5% portfolio unless specified: TBD=To Be Determined
Pending trade order (Buy Stops entries unless specified)
Stock: Buy Stop: Exit price: Projected gain P/L Stop post entry
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