Bucket 3: New Trade
Bucket 3, new trade: short WBMD June 30 calls The stock is down 26% today on news of the CEO resigning and the company not being up for sale any longer. Sales guidance is very murky at best This is a classic Bucket 3 options strategy trade for us where we sell far out of […]
Is The 200 DMA Useful For The S&P 500?
Yesterday the S&P 500 closed right near its much talked about 200 day simple moving average; the closing print for the S&P 500 was 1377.51 and the 200 day moving average closed at 1380.71. As we are once again at this crucial support for the S&P 500 I wanted to take a moment to discuss […]
Two Stocks With Upside Potential This Football Season
After another action-packed weekend in the NFL I decided to look at a couple of companies with exposure to the football season. To be clear when I refer to the ‘football season’ I exclusively look at the September through December period of any given year. HIBB Sports Inc (HIBB) operates a chain of sporting goods […]
S&P 500 Five Day Average True Range
The five day average true range of the SPX is again just below the average for the year…currently near 13. Each time this happens I take note and mentally at least prepare for bigger moves down the road.
Morning Thoughts July 9
New 1yr low for the euro on Friday (-86bp at 1.2285). Spanish 10yr back around 7%. IMF’s Lagarde said likely to revise global growth outlook lower. US NFP disappointed at 80k vs 100k consensus. However, bulls will point to the increased chances of QE3 Broad-based weakness with all 10 sectors lower and 23/24 L2 sectors […]
Gaps on both sides of the market here…
The chart below is of the S&P 500 emini futures and depicts 30 minute intervals. Note the gaps on both sides of the market. One or both of them should fill in the not too distant future
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Reducing GMCR Position
Given the monkey move higher in GMCR today we are reducing our short position some now. Clearly the break lower that we saw was too obious for it to work in a classical fashion. So, we are reducing size and should we get a break out to the upside in coming days we could even […]
New Bucket 2 Trade:
We are short GMCR as of Friday jan 6th as the stock is breaking out of a very tight consolidation range to the downside. Short GMCR at 43.23
Morning Thoughts January 9
This morning it's all about timeframes…and that's what we do! Friday's trading session was rather flat and uneventful, which was to be expected after busting out of the gates the way we did on Tuesday when they opened the markets for 2012. The 'easy' trade to the upside is likely over, although we still expect […]