[Weekend Summary]
Dear Member:
After a relatively wild week, it looks like we might finally be getting a signal that the markets may be returning to the bullish side. The Dow, Nasdaq, and SP-500 all have poked their heads back up through the downtrend line today to barely save the week for the bulls. Clearly, the President helped with the efforts to assist homeowners in trouble with their mortgages by easing the ability to refinance. Next week should really help tell the tale as the big boys return to the marketplace. For the moment, at least, things are looking more bullish.
Sirius Satellite Radio (SIRI) got a little life back as it moved up this week. I like the $2.50/$5 LEAPS spread I'm holding as I do the SPY spread with SPY moving back to the upside.
Citigroup (C) has also turned back up and looks like it may give me another chance to sell some higher strike calls against my underlying position to bring in some more income.
I rolled out my puts on the Q's this week before the President's announcement about the mortgage issue when it looked to me like the market may be getting ready to really tank. Now I will use the position to write calls against it to generate income and reduce the relatively small risk I currently have.
Those of you who read the free Newsletter will see I mentioned QLGC as a possible LEAPS play. I liked what I saw today, but am very wary about entering a directional position going into a holiday weekend. I'll re-evaluate this one on Tuesday.
I hope you have an enjoyable Labor Day weekend. Thanks for subscribing.
Bill
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