[Weekend Summary]
Dear Member:
A very tough week for the bulls. Looking at the weekly charts, the Nasdaq was down 92 and closed just slightly below support on a bit weaker volume. The Dow Industrials were down 351 to the weekly price support and to a weekly trend support. Weekly volume was down on the SP-500 and it fell almost 30 but to the area of support.
Looking at the daily charts today, the "Naz" was down on high volume and the Dow Industrials fell to support on just above average volume. The SP-500 also dropped to a level of support on high volume.
Nothing has yet signalled a reversal up yet. There has not been a classic capitulation so the message is mixed even if it leans to the bearish side. Until the market signals a turn I am not ready to leap into bullish mode.
All that having been said, it wasn't a bad week. I was able to sell and buy back the Jul 180 calls on BBH and make over 70 cents a share in just 2 days. I sold the Aug 128 calls on SPY (against my long term long call position) and that short position is already quite profitable.
My 110/111 bearish call spread on the "Diamonds" (DIA) is looking very good and with only a week to go before expiration, no adjustment may be necessary. The puts on the Q's are back in the black as well.
Conoco Phillips has gone sideways and it may be time to close the call leg of my straddle next week if the upward move remains stalled. If that happens, I'll then look to see if I can get a gain on the puts as well.
The short leg of the spread on Sirius Satellite (SIRI) is also profitable and I'll close it when SIRI turns back up. Micron (MU)ended down for the week and looks as though it may be ready to reverse back up. Since I have a spread position, I am satisfied with the play so far.
Only the Tech ETF (XLK) may need the creation of a spread to reduce risk and bring in some income in the meantime.
Though option trading can certainly be risky, this week has demonstrated how money can be made in down moves as well as up.
Thanks for subscribing and have a terrific weekend.
Bill
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