[Weekend Summary]
Dear Member:
Frankly, I'm surprised, but the rally continues. The Dow, NASDAQ, and SP-500 were all up for the week and held on today as well. The Dow is at a double top and needs to break above 12,342.52 to continue the upward march. There are some warning signs in that the volatilities are beginning to increase. An increase in volatility often predicts a downturn in the market. So far, however, we have not seen the downturn.
My naked puts on Northfield (NFLD) are looking great. When I opened the position I sold nothing but time value, and time is rapidly running out in my favor.
My 123/124 bearish call spread on the Diamonds (DIA) is right on the cusp. I sold the 123s and bought the 124s as the protective leg. The Diamonds closed today right at 123. As long as they stay at or below 123 no adjustment will become necessary. I shall just need to keep watching this position closely. It looks like it has some likelihood to be profitable.
The Citigroup (C) and SPY spreads both look fine at the moment.
I entered a new bearish call spread on NVIDIA (NVDA) that will yield 42.8% if the stock can't break resistance and stays below 37.50 until January expiration.
Sirius Satellite (SIRI) has returned to support and could offer a profit on the short leg by closing that leg in the near future.
BBH remains in an uptrend. I am just biding my time on this one.
Have a great weekend.
Bill
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