[Weekend Summary]
Dear Member,
Overall, this was a pleasant week for me. I bought some '07 $2.50 LEAPS calls on CDC Corp. (CHINA) and the stock was up about 7% from its' open on Monday, largely as the result of an announced buy back of up to 100 million Hong Kong Dollars.
Micron (MU) remains in an uptrend and jumped about 9.6% from its' open for the week. I own the Jan '07 10 calls and have sold the Jan '07 15 calls creating a covered or spread position.
EBAY followed suit and was up about 8% from the Monday open. It is now bumping against resistance. If it breaks through, all is well and good. If it turns down, it could provide an opportunity to sell some calls creating a spread as in the case of MU, thereby reducing risk and bringing me some income.
The call side of my Mar strangle on QQQQ has neared resistance. If it turns down, I'll consider taking the profit on the call leg. If it closes above 40, I'll look at another adjustment that will result in further reducing risk in the position. My SPY 121/122 bear call spread is the only position that is bothersome at the moment. SPY went through the short term downtrend line on Wednesday and I thought about adjusting then. However, the Japanese Candlesticks are suggesting the possibility of another downturn so I haven't yet made a move.
The real question is whether the bull has returned. The Nasdaq, Dow 30 and SP-500 all broke through the short term downtrend this week. Now each is near a resistance. A break through the resistance with strong volume may well herald a bullish move, but they haven't yet accomplished that move.
I hope you have a relaxing and enjoyable weekend. Thank you for subscribing.
Bill
|
