Overall 33% stocks, 67% cash and equivalents. Stocks position is down 12% from last week due to weakness in Apple which shook me out.
This rally is looking tired. Take a look at the TSV-price divergence on the left. The 28-bar TSV with a 10-bar moving average shows the rally of the last 10 sessions has not been supported by TSV. TSV is essentially price change times volume so a declining TSV can indicate lack of buying as much as outright selling. In this case, I think its just lack of buying. Price is the ultimate indicator however, and I would follow the price before following the TSV.
On the trading side, the rally in AAPL was loosing steam early in the week. Recall I bought 100 shares at about 140.50 in each account on the breakout above 140. I sold those shares in each account on Monday in the low 141's and took a small profit in each account. That left me long 2 June 100 calls purchased last week at 43.30 in each account last week. This position deteriorated as the week went on but seemed to hold above 140. On Friday, AAPL opened decisively below 140 and I sold the 2 contracts at 38 and 37.80 in each account. So I took about a $1060 hit in each account on this sale. So to answer last week's question - was this position smart or dumb - the answer was - dumb!
That loss was a bit demoralizing, but I have good profits in some other positions. The younger me would have taken a profit in another position to offset this loss. But i've learned over time to cut your losses and let your winners run. Take a look at my weekly update which has mostly winners since the losers have already been eliminated.
The real challenge for next week is how to handle RIMM earnings. I'm long 100 shares in each account from about $79.50 showing a decent profit in each account. I'm also long 1 June 80 call in each account which is about 80 bucks underwater. Here's what i'm considering - on a rally back to $85 dollars, sell the long stock and take a $5.5 profit. Then take that profit and buy 1 80 put at about $3.00. So this is essentially a long straddle where I can take all the profit above say $87, but i'm covered 1 for 1 below 80.
The chart on the left (courtesy of our friends over at OptionsXpress) show the profit/loss graph for this position. If i'm able to sell the long stock for a $5.5 profit, then I will be profitable between $75 and $85 with the maximum possible loss at about $300 in each account if the stock settles right at $80.
If you read my entry on RIMM from mid-week, recall I am also long 1 $85-90 call spread with a maximum $200 loss at $300 profit.