[Weekend Summary]
Dear Member:
The major indices each closed up a little for the week and above recent resistance. Things are looking more bullish. The major caveats are that the moves were not accompanied by very strong volume. In addition, as I write this, there has been news that an American ship may have fired on some Iranian boats. Open conflict in the region could certainly change things in the market. Depending upon the accuracy of that report and the seriousness of any international incident, we could see another reversal down. However, if the episode has been blown out of proportion or is not major, it looks like the bull is gaining a small foothold.
I brought in some income early in the week selling some out of the money calls on SPY creating a spread against my Dec calls and reducing risk in the underlying position.
Toward the end of the week, I bought some Jan 35 puts on Cognizant Technology (CTSH) as it continued a ride down a down trend line. The stock closed down a little today and remains in the downtrend, and those factors are a positive for my bearish play.
The spreads on Citigroup )C) and Sirius Satellite Radio (SIRI) have a long time to go, but at this time nothing to do but let them develop.
So far, the May condor on the Russell 2000 (RUT) is doing well.
Watson Pharmaceutical (WPI) on which I own some puts closed at a very critical junction of a resistance and a downtrend line. If they hold, I might have a decent play here. It the stock breaks through, I'll have to take a loss. Next week should tell at least some of the tale.
Have a great weekend.
Bill
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