[Weekend Summary]
Dear Member:
Strong upward price movement in the Dow, S&P 500, and Nasdaq though not supported by volume. Interestingly on this options expiration Friday, all the indices came to rest close to important levels. The Dow and S&P are dealing with a multiple top resistance. The Dow managed a close just above and the S&P just below the respective levels. After a gap up, the Nasdaq composite came to rest just above the important 2400 level and managed to scratch above the 100 day exponential moving average. Mostly, the week looked bullish, BUT these resistances still need to be dealt with before I am willing to claim the bull is back. From the bullish standpoint, I would also liked to have seen better volume, but, on the other hand, volatilities were sinking and that is generally a bullish indicator.
This week, I closed the final positions in the Apr SPY and Russell 2000 (RUT) condors. Both did quite well. Before commission, the SPY play realized a 32% return on risk in 17 days and the RUT returned almost 29% in 26 days.
I still hold my Dec 140 calls on SPY against which I have regularly been writing calls over a long period. The spike today pushed those options up nicely today.
Citigroup (C) had a strong bounce and that is a positive for my LEAPS bull call spread.
Watson Pharmaceutical (WPI) has been all over the place, but has honored the down trend line that began around the time I bought my cheap out of the money puts. So far, the play is still OK with me.
Sirius Satellite Radio (SIRI) has formed a little double bottom and started a move up. I'll wait and see when the best time might be to sell some more calls against my LEAPS calls.
Thanks for subscribing. And thanks to those of you who have bought "Trade Your Way to Wealth."
Bill
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