[Weekend Summary]
Dear Member,
I just returned this week and found I had been stopped out of a number of positions as I'll discuss later. I remain in Micron (MU) where I own the Jan '07 $10 calls. MU rose dramatically up $1.56 to $13.30 over the last two days with a gap up on huge volume today. Siebel (SEBL) is now essentially a play on Oracle and is currently flatlining around $10.30. I own the Jan '07 $12.50 calls at an initial cost of $0.80. EBAY had a strong week closing at $41.19. I own the Jan '07 40 calls.
I was stopped out of my positions in FCX, SPY,YHOO and BGG during my absence. FCX was probably the worst loss, but that was overcome by gains from the sale of my SPY LEAPS. After rolling several times, I a total of about $35 on my remaining naked puts on BGG. I lost $0.20 on NITE. Overall, nothing to brag about, but with the stops in place I had little concern while on vacation.
Upon my return, I tried to get back into SPY which looks pretty strong to me at the right price. I am searching for a reentry either on a retreat to the trend line or on a break through resistance. I am also looking at CSC, SYK, TRN and WPI for potential plays early next week.
I like SPY since the SP-500 that it "tracks" is near a critical junction of uptrend and resistance which it broke yesterday. The next important resistance is 1245.86. The DOW Industrials are channelling between 10,400 and 10,700 and a break on strong volume in either direction would be significant. The Nasdaq Composite is in an area of compression on both the daily and weekly charts and a breakout from such a compression is often followed by a fairly strong move in the direction of the break, but I need to be cautious of any "head fakes."
I am looking forward to the fall trading season.
Thanks for bearing with me during my vacation. I really feel refreshed and ready to go.
Sincerely,
Bill
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