Dear Member:
The continuing strengths of the markets is amazing. Economic news continues to be excellent. The Dow keeps hammering out new highs and on even higher volume Friday. The NASDAQ, and SP500 are also holding right in there. The only suggestions I see of a potential downturn were Friday's Japanese candlestick formations on the NASDAQ and S&P 500. However, those formations have not been completed, and, without confirmation do not yet mean anything. There has been a slight upturn in volatilities, which could be an early suggestion of reversal and the survey of advisers was extremely bullish, which often can be a contrarian indicator. While the markets will turn down some time, we don't know when some time will be. I am approaching my bullish positions (which are in the great majority right now) with my finger on the trigger so that I can get out quickly in the event of a downturn.
Friday was expiration day and Thanksgiving is next week. Nothing particularly surprising occurred today, and we can expect lighter volume next week with the arrival of a holiday.
I entered and exited a leaps position all on Armor Holdings (AH) this week for a 4.1% gain before commissions. It looks as though there may be a reentry into some position on this stock. I also sold my Sanmina (SANM) leaps for a 5.5% gain in approximately 5 weeks. I was able to exit Sanmina just in the nick of time since it dropped 9.5% on Friday.
I also added more leaps on SPY. When I bought the December' 08 140 calls. The S&P 500 broke a resistance this week and has remained above that level since then.
Citigroup (C) remained essentially flat for the week, and I am satisfied with my spread position.
The Biotech ETF (BBH)was up for the week and I'll either be selling some shorter-term calls against my January position or I'll roll the January position out.
The tech ETF (XLK)has continued to show strength. I'll probably look to exit that position with a downturn in the market.
Sirius Satellite Radio (SIRI)was down modestly for the week and I am satisfied with my spread on that stock.
Have a wonderful Thanksgiving,
Bill
|
