I’m watching the SPX Augen score inching up into high territory. It will hit 6 today. As you recall, the score is the number of 1-Standard Deviation up moves in a 21 day period. The higher that score gets, the more it points to a little too much frantic buying. I’ll look through everything this weekend for clarity on that score going up after a big correction. But anyway, for right now my plan is to stop any new buying at a “7”, take profits at “8”, flatten at “9”, get VIX calls or SPX short delta at “9-10.” In fact I have already taken steps to look through my whole portfolio and ask myself if I really want to hold certain positions. In the last 20 min I have cut:
ISRG $1215 net profit
IBM $200 net loss after many many income rolls
CARB $472 net gain on covered call
SBUX cut my short for $100 gain
TSLA $ not sure, don’t have a baseline
Took profit on VXX puts.
SHAK $244 net profit

I’ll write more this weekend about observations on the Augen score going up after a correction.