[Weekend Summary]
Dear Member:
The bad economic news is finally catching up with the markets. All the major averages fell this week and my guess is they have some more to go. I would not be surprised to see the Dow drop another 250 points to the 12750 range where it found a bottom in August and the S&P maybe fall another 50 points or so to the 1400 level. The Nasdaq was hit fairly hard this week and could also retrace to the August lows which are about 177 points away. If the averages fall below the August bottom it could well be "Katie, bar the door." All of which does not mean that there isn't money to be made. Even in the face of the downdraft this past week, I had profitable trades in the two most bullish services, the $10 Trader and the Trend Trader. Of course, bearish trades can be fashioned in Option Trader with greater ease, but money can certainly be made in the markets in many different ways regardless of direction.
I adjusted the Citigroup (C) spread this week by creating a bear call spread and bringing in 1.58 a share. That new short leg is already enjoying quite a bit of paper profit and I may adjust again to bring in more income again next week. The spread on the Q's may well need adjustment unless there is a bounce early next week. The SPY spread has plenty of time until expiration in December of 2008.
I like what I see in the Sirius Satellite (SIRI) spread so far and currently need do nothing there.
The condor on the Russell 2000 (RUT) continues to hold its own with only a week until expiration. I may need to close the short put leg on that one, but I won't be able to tell until Tuesday or Wednesday of next week.
The puts on Safeway (SWY) are making money now and are coming up on a support so I'll be watching them to try to preserve profit.
Have a great weekend.
Bill
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