I expected the earnings season and mainly this week (this week is very important to determine if the market gets a new impulse to reverse and continue upwards or further deteriorate) will bounce the market up. It happened and the market (SPY) rallied today and closed at 132.73 (which is at the intermediate resistance level). Continue reading →
Making 45% Annually Trading Options Against Dividend Growth Stocks
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Trade 07/15/2011
Today I have bought 1 August 17 SPY put 131 strike contract expecting the market to decline further down since it broke through 50 day SMA on high volume. I am expecting the market to go further down to the second resistance at 130 points. The market is in sideways overall, but potentially creating a Continue reading →
Indecisive market and today’s disaster
Will you believe me if I claim that today’s market trend was a disaster? Well, if not take a look at the daily chart. In the morning we gapped up and everything looked bright, but we ended down. Extensively down, compared to the morning’s start. Two days ago I tried to explain, why I was Continue reading →
Market update – Bear correction or new bull?
Today, the market reacted as I expected. After a strong run up in a very short period of time it was imminent that the market will correct. Being bullish near the first resistance or shortly above 50 day SMA was very dangerous. I myself was originally expecting the market bounce back down off of the Continue reading →
Stock market overextended
Today the market was yet another surprise. S&P 500 gapped up and basically broke through the major resistance level. All happened because of job claims data. When I reviewed them I didn’t consider them that amazing. Apparently good enough to bring another wave of enthusiasm to the market. But the volume was once again quite Continue reading →
Where is the market heading now? Down?
That’s a million dollar question investors are probably asking now. I am asking as well. The truth is that last week move upward was impressive. They say, it was the best 5 day move since 1928 (I think). But was this move a bullish reversal or is this a bearish correction? I think, now is Continue reading →
Rally attempt – short lived?
Once again the market rallied as I expected. It came out of the choppiness few days ago and rallying higher. I think it is partially due to the end of the quarter and mutual funds want to improve their results. As I mentioned in my previous post, we may expect the market to rally up Continue reading →
Market at the bottom
Yesterday investors panicked enough to push the market at its bottom. We are at the bottom or near it. We may now go sideways or start recovering. How far recovery would go? Nobody knows. It can be a pullback before it will go further down. S&P 500 may recover to somewhere at 1350 points or Continue reading →
Is there an investment for volatile market?
Many times investors look for protection and search for “anchor” investments to protect or stabilize their portfolios. During the unstable and volatile market investing in precious metals or natural resources such as natural gas may provide such stability. However, for a new investor it may be difficult to invest properly and some guidance may be Continue reading →
How to invest or trade in a weak market?
Today the market ended down again. The S&P 500 lost 1% today and confirmed that we are still in correction. How a small investor shall trade or invest in this market? On the internet you may find a lot of information how to deal with this market. Some say sell or reduce your positions, others Continue reading →
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