We visited eze and Monaco rock yesterday. Eze is a medieval town outside of Monaco which reminds me of an extremely miniature castle version of Mdina. It’s got shops and restaurants nestled within the stone. We only had an hour there so we enjoyed some Provence rose and headed by bus to Monaco rock which is the old Monaco district where the palace and church are. Also where Grace Kelly is buried. She died untimely on the roads of Monaco many years ago (she was married to prince Rainer). A tidbit: Monaco means monk. The reason why it’s monk is because of Grimaldi who disguised himself as a monk and knocked on a monastery, slaughtered it’s inhabitants and took over the area. For some reason this seems celebrated here. Whatever.
Today we visit Sanary and le Castellet
The market had its first four day losing streak since 2013. It was a solid 2 percent down day. It’s approaching over sold but the downward RSI is strong so we should expect more down ahead after perhaps a little bounce. You need some positive divergence in the RSI before reaching a bottom. There is none -yet. We’ve seen violent unrelenting bounces before without divergence but it feels different this time around. A lot more geopolitical events now (Greek exit, insanely falling oil, euro/usd fall)
Our spy/TLT trade isn’t doing terrible considering but it’s still down. As time passes and upon any VIX reduction and upwards move we should profit well. I entered at multiple times and as well even some was entered yesterday during the strong down move. We’ve got 205-200, 204-199, 203-198, 202-198 and 199-194 now. So we added ours all the way down. It’s better than having entered them all at 205-200. TLT is acting well as the pair trade. Over all we should do well enough. I may add 10 percent more TLT On a bounce in spy and fall in TLT as a slight hedge.
