The S&P500 had a typical oversold bounce which stopped right at resistance 1340...draw a line going back two and half months and you'll know the significance of that level. I'm still leaning towards a washout selloff coming in the next 3 trading days to 1311. If however we break 1340 and stay above it for over a half hour i expect the next wave to 1400 has started. Until then, i'll be waiting to buy June calls on the spy. I'll begin buying calls under 133.
On bullish on offshore oil driller called HERO. Buying the June 7 calls too.
Wednesday, May 18, 2011
Tuesday, April 26, 2011
Weekly Trade $SPX (S&P500) headed to 1320
Good Morning.
Another Fed Week which means another great trading opportunity.
I'll be trading the SPY weekly options that will expire Friday.
SPY 133 Puts - I want to Purchase them in the .40s range
My expectations is for the SPY to trade down to 132.3 by Thursday.
While it does, I'll be looking to buy the SPY 133 May Calls at about the $1.40 range. I expect the spy to trade to 138 by next month, which equates to S&P 500 1380 in 3 weeks.
Boldness renders Fortunes.
Another Fed Week which means another great trading opportunity.
I'll be trading the SPY weekly options that will expire Friday.
SPY 133 Puts - I want to Purchase them in the .40s range
My expectations is for the SPY to trade down to 132.3 by Thursday.
While it does, I'll be looking to buy the SPY 133 May Calls at about the $1.40 range. I expect the spy to trade to 138 by next month, which equates to S&P 500 1380 in 3 weeks.
Boldness renders Fortunes.
Tuesday, April 12, 2011
A Bounce Back Coming S&P 1350 (2nd Trade)
After sideways action followed by a selloff today, the market looks ripe for an in your face fuck the shorts rally. And that's what i only expect.
Molycorp worked out great, but this time I will give your more options.
Pick #1
EEE (Clean Coal Play)
After hanging in the doldrums, some life has entered it recently. With Oil staying above $100, and i believe it will stay above it for the next two months. Alternative energy plays should gain traction.
Play EEE Call Options by buying the June $4 calls for .20 .. It gives you ample time and for such a cheap amount to maybe see a serious return.
Pick #2
WNR
Crack spreads are taking out new highs.
I bought the stock today and expect it to hit $25 soon
Pick #3
ROYL
Nice size short interest. Could see it take out its recent highs
Molycorp worked out great, but this time I will give your more options.
Pick #1
EEE (Clean Coal Play)
After hanging in the doldrums, some life has entered it recently. With Oil staying above $100, and i believe it will stay above it for the next two months. Alternative energy plays should gain traction.
Play EEE Call Options by buying the June $4 calls for .20 .. It gives you ample time and for such a cheap amount to maybe see a serious return.
Pick #2
WNR
Crack spreads are taking out new highs.
I bought the stock today and expect it to hit $25 soon
Pick #3
ROYL
Nice size short interest. Could see it take out its recent highs
Tuesday, March 1, 2011
1st Trade Order via Blog
Never do I contemplate blogging about a trade, but the rarity of documenting my spontaneous trade ideas has forced me to finally sit down and spill. My new trading idea is as rare as i blog. The idea began when news recently turned uber bullish on the sector, as China limited exports on this sector and the world demanded more and more of it. If you're still clueless about what I'm alluding to, the sector is none other than the Rare Earth Metals.
My trade is focused on MCP (MolycorP) the only producer of rare-earth oxides in the Western Hemisphere, currently ramping up production at its facility in Mountain Pass, Calif., one of the world’s richest and largest rare-earth deposits.
Thesis: Not only have rare earth prices spiked in the past 6 months, there appears no sign of lower prices as week after week China reasserts its policy of limiting exports. However, the metal price alone is not what's driving me into this trade. As Oil prices continue to climb as I predicted on Facebook back in November with a price objective of $150 within 6 months, (I know pple thought i was CRAZY!) alternative energy will be the talk of the town. Wouldn't you know what most alternative energy are composed of, the currently hard to find rare earth metals!
The Trade: As the company has digested its secondary offering, hovering below the $50 mark, I expect a new fuel of buyers to march the stock above the $60 level before April.
I bought MCP $60 April calls for 75 cents.
I intend to milk this for as long as i can, meaning i'll wait until April to close it even if im up 300% on it.
My trade is focused on MCP (MolycorP) the only producer of rare-earth oxides in the Western Hemisphere, currently ramping up production at its facility in Mountain Pass, Calif., one of the world’s richest and largest rare-earth deposits.
Thesis: Not only have rare earth prices spiked in the past 6 months, there appears no sign of lower prices as week after week China reasserts its policy of limiting exports. However, the metal price alone is not what's driving me into this trade. As Oil prices continue to climb as I predicted on Facebook back in November with a price objective of $150 within 6 months, (I know pple thought i was CRAZY!) alternative energy will be the talk of the town. Wouldn't you know what most alternative energy are composed of, the currently hard to find rare earth metals!
The Trade: As the company has digested its secondary offering, hovering below the $50 mark, I expect a new fuel of buyers to march the stock above the $60 level before April.
I bought MCP $60 April calls for 75 cents.
I intend to milk this for as long as i can, meaning i'll wait until April to close it even if im up 300% on it.
Sunday, January 2, 2011
No Talk of Hindenberg Omen NOW?
We actually witnessed the occurrence of another Hindenberg Omen for 2010. This technical indicator has been a prelude to many market crashes and corrections alike. The previous signal happened in August of 2010 and many spoke of the gloom ahead. However this never happened and what resulted was a large rally and false signal which happens. We must remember its a probability business and never a sure thing. With that said, this new Hindenberg Omen signal which took place on Dec. 23rd has gone unnoticied by many. It must be largely due to the fact that it occured during the holiday season and most are on vacation, and also because many are thrilled by the rally and cant see a crash occur.
Remember, its a game of probability. There's about a 1/4 chance no correction (5%) occurs, 1/2 chance a %5 correction, and 1/8 chance a Crash occurs (20%+). This time i feel its VERY PLAUSIBLE we get a Correction(5-10%) given the sentiment of the market, but i doubt it would be any more than that mainly due to the Fed's money printing.
The H.O. expires in Apri.
Forcast:
Sideways action into March 8th 2011. (Mid January Selloff and Early Feb Selloff 5-10%)
March -July-> Dow 13,000 by July 2011 with sideways action for the rest of the Year.
Remember, its a game of probability. There's about a 1/4 chance no correction (5%) occurs, 1/2 chance a %5 correction, and 1/8 chance a Crash occurs (20%+). This time i feel its VERY PLAUSIBLE we get a Correction(5-10%) given the sentiment of the market, but i doubt it would be any more than that mainly due to the Fed's money printing.
The H.O. expires in Apri.
Forcast:
Sideways action into March 8th 2011. (Mid January Selloff and Early Feb Selloff 5-10%)
March -July-> Dow 13,000 by July 2011 with sideways action for the rest of the Year.
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