Archives


 

trend trading stock, trade stock

[Weekend Summary]

Dear Member:

As oil prices continue to soar, the markets took a real beating this week. No question the bears were in control. The Dow fell nearly 500 points for the week while the Nasdaq Composite lost nearly 90 and the S&P 500 around 40. From a technical standpoint, it looks like there may be more to come. The question is where will things turn? The Dow's next support as I see it is almost 600 points away near 10,700 while the S&P 500 is already at the important 1275 support both on the weekly and the daily charts. The next level down on the Nasdaq Composite is around 2250 so it has another 65 points to go to test that level. In short, I still see more bearishness than bullishness. In general, in my services, I have played things pretty close to the vest, closing a profitable trade in the $10 Trader, opening a new spread position in Option Trader as well as selling some options against existing positions to bring in some income, and generally keeping mostly to cash in Trend Trader.

I opened a bullish put spread this week on Weatherford International (WFT) and that has done well for the week.

I also sold calls to create covered positions against my long call positions in Citigroup (C) and SPY. These moves resulted in some income coming into my account and the reduction of risk in the long call positions. As of this writing, each of the short legs I opened in these stocks this week are showing a profit.

I finally closed my position in Sirius Satellite Radio (SIRI) after adjusting many times to reduce risk.

Cognizant Tech Sol (CTSH) dove this week which was generally helpful to my Jan 35 puts. I do have a short leg (the Oct 30 puts)that form the second leg of a bearish diagonalized calendar put spread so I am presently content with the position.

Stec, Inc. (STEC)fell for the week making the put leg of my straddle profitable. The stock price stopped at a support on Friday so if it moves up from there, I will consider the first adjustment of this position by taking profit on the put leg. I'll just see how it goes next week.

Finally, Knight Capital (NITE) has continued to honor the uptrend line and my Jan 2010 17.50 calls are still in the money. I had sold the Jul 20 calls against the long position and on a dip, that leg is showing profit.

I would not be surprised to see even more volatility in the shortened trading week coming up.

Thanks for subscribing.

Bill

Home  |  Subscribe |  All Rights Reserved |  Privacy Policy |  Advertising |  Contact Us |  Terms of Use |  Disclaimer |  Links


trend trading stock
trade stock