While the market appears vulnerable to rising interest rates and the possible recession, We continue to remain in a wave 2 corrective wave with a possible C wave still yet to come. My current equity positions consist of Jan 24 covered call positions for dividend generating stocks. Additional protection is added with March SPY put spreads.
Should this analysis prove correct, the coming Wave 3 can be quite powerful. In wave theory, Wave 3 cannot be the shortest wave so one can make an initial assumption that wave 3 will at least equal wave 1. The move could possibly result in a 100% gain from the eventual wave 2 lows.
Contemplating some current weakness but longer term gains, I am adding a 10% position in equities that drop 10% after the initial purchase. Thus far, this as proven to be a good strategy with GOLD, PAAS and INTC. Each fell 10% after the initial purchase but have rebounded nicely. Adding on to the positions in this manner at least leaves me with longer-term exposure should these dividend=paying stocks be called away.
Should this analysis prove correct, the coming Wave 3 can be quite powerful. In wave theory, Wave 3 cannot be the shortest wave so one can make an initial assumption that wave 3 will at least equal wave 1. The move could possibly result in a 100% gain from the eventual wave 2 lows.
Contemplating some current weakness but longer term gains, I am adding a 10% position in equities that drop 10% after the initial purchase. Thus far, this as proven to be a good strategy with GOLD, PAAS and INTC. Each fell 10% after the initial purchase but have rebounded nicely. Adding on to the positions in this manner at least leaves me with longer-term exposure should these dividend=paying stocks be called away.