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[Weekend Summary]
Dear Member:
Somewhat predictably wild times in the markets over the last several days. It is both earnings season and today was April options expiration for retail trades. The Dow marched higher through the week finishing with a big move Friday on strong volume. The SP-500 and Nasdaq also moved up. The interesting thing was that market breadth was negative for much of the week until Friday. Much of the jump Friday may be related to options expiration and it was particularly interesting to me that the Nasdaq stopped at the level of the February high from which it immediately tumbled farily far and fairly fast in February. I mean that as an observation, not as a prediction. I believe that market movement next week will be particularly significant. I consider myself to be a relatively conservative trader, since I do trade my own money for my living, and was particularly wary this week coming into option expiration in the middle of earnings.
I tried to enter a LEAPS call position in On Semiconductor (ONNN) and just missed on my limit. The stock is trading in the same range and is on the radar for next week.
The spreads on SPY, Citigroup (C), and McGraw-Hill (MHP) continue to be fine for now. I considered an adjustment on MHP on Thursday, but decided to wait until next week to make the final decision.
I still have my September puts on QQQQ which is at a critical juncture. If the Q's move up next week, I will probably sell some puts against my existing long position to convert it to a bullish position and bring in some cash while reducing risk in the long puts.
Sirius Satellite Radio (SIRI) has been behaving like a cur, not just a dog. All I want to see is some movement so I can sell some calls against my long term (Jan '09) calls. An increase in implied volatility even if not in price would provide the catapault for some positive action. Meanwhile, I am remaining patient.
Have a great weekend.
Bill
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