We went for the 875/885 on the RUT this month for a couple of reasons. First, weâ€™re again able to get a spread above the all-time high. Secondly, the RUT was offering a nice premium above and beyond the SPX. The worst times to be in a RUT spread are when youâ€™re expecting a wave 3 up. Itâ€™s possible we may get one this cycle, but we rank it as a lower probability and if we do, it should be of a lesser degree. The SPX faces large resistance is the 1420-1430 area if we continue moving up here, but weâ€™re even doubtful about that happening given the Chairmanâ€™s speech yesterday and we could be starting the â€˜sell in Mayâ€™ syndrome. Too early to say yet. Thereâ€™s no question the market is impulsing upwards, but the big question is it really an impulsive wave? Thereâ€™s a big distinction between the two and we should see soon enough
Mario Randholm Blog. Mario is the founder of Randholm & Co. S.A.C., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods.