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trend trading stock, trade stock
[Weekend Summary]
Dear Member,
Could you tell that many of the professional traders were in the Hamptons this past week? SPY on which I own the Dec '07 115 and 120 calls managed a 1.51 gain for the week, but remains tenuously close to the 50 day moving average. The Nasdaq was up 20 for the week and also holds just above the 50 day. The Dow-30 is having some trouble getting above the 50 day even though it managed a minor 50 point gain for the week.
The bad news for me was my first losing trade in a while. I bought the Jan '07 LEAPS calls on Home Depot (HD)on Monday and was stopped out on Tuesday for a loss of 16%. I am still watching HD for a reentry since it looks like it may continue the uptrend.
I am still in my bearish puts on Pulte (PHM), but now I have twice the number of put contracts as I started with since the stock split 2:1 today. The number of contracts doubled and the strike price halved so I now own the Jan 42.50 Puts (instead of the Jan 85's). Today, the stock bounced down from a resistance.
I am also still in my Jan 40 Puts on Freeport Mcmoran (FCX). The stock made a pretty good run against me this week, but it seems to have stopped and, perhaps, turned back down from resistance. There is some indication of the reversal back down by the piercing pattern the stock evidenced today. In any event, it is definitely on probation.
Knight Capital (NITE) had a good week in that it remains in an uptrend and has broken through and closed above a price resistance.
Micron (MU) was also up modestly for the week, but it hasn't been able to break weekly resistance around $12.41. If it does, it will be necessary to buy back (buy to close) the Jan '06 12.50 calls I sold for income a couple of weeks ago.
Briggs and Stratton (BGG) was up $1.36 for the week and my Oct 35 naked put position is looking fine for now.
EBAY showed some life, moving up $0.72 for the week. SEBL did nothing. On SEBL, you may recall that I bought out of the money '07 LEAPS calls quite cheaply. A spike in volatility and/or an upward move would help.
YHOO appears to be at a critical juncture. It closed at the intersection of a trend support with a horizontal price support. If it drops, I'll sell some calls against my Jan '07 35 call position to bring in some income and reduce risk further. If it rises, I'll follow along with an exit below the trend.
REMEMBER, SEPTEMBER IS FREE!!!! I'll be on vacation for a couple of weeks starting September 10th and won't be trading during that time. Next week, I'll be sending alerts to let you know where all my stops are placed before I leave. There will be no charge for September!!!
Let's do what we can to help those folks who have been beset by such tragedy on the Gulf Coast.
Bill
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