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Robert Edwards
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Contrarian daytrading technician who specializes in locating high probability short term trades while predicting price movement directions with over 85% accuracy. Most of my trading involves either extremely short term micro scalping of stocks or commodities (using 1 minute bar charts), or swing... More
  • WEEKLY TRADING ACTION Update For 2/15/13 0 comments
    Feb 14, 2013 11:47 PM | about stocks: AAPL, MCO, NUAN, GMCR, HLF, MCP, PBR, APOL

    Another great trading week shaping up! Update as follows:

    APPLE (AAPL) Up move stopped at 485 as predicted and now have three down closes in a row (Apple does not like having 4 down days in a row). So Friday should be an up day, and if not, then definitely we should go up on Tuesday (Monday is a holiday). We are getting early selloffs that allow for option buying, and then getting a high, another sell-off and another pop. Good two-way trading action has allowed me to dump 80% of my shares at a profit, and now using March monthly calls $10 out of the money to daytrade from long side.

    MOODY'S (MCO) Daytraded only 100 to 200 shares from the long side and been very bouncy and good for $200 a day, well worth the trouble. If it had sold off a bit more, I would have loved to have been able to scale down buy with bigger size. No longer oversold so I have stopped trading this stock for now.

    HERBALIFE (HLF) Last week my 37.50 calls went off worthless, that were sold for 75 cents. On Monday, sold this week's 37.50 calls expiring this week for same 75 cents. With the aftermarket pop Thursday night to 47, the stock will be called away and I will quit playing this stock because in the mid 40s, this stock is no longer cheap and now it is dangerous to play.

    GREEN MOUNTAIN COFFEE (GMCR) Started out the week long from 45.10, and on Monday's hard dip, bought on dips and sold out on rallies to lower average price to 43.50. On Thursday's move above 46 unloaded 80% of shares and will now wait for weakness to buy back.

    NUANCE COMMUNICATIONS (NUAN) Calculated that 18.50 area should be value on this sell-off from 25. Sent stock talk message and told a couple traders it was time to buy at 18.50 on Wedn. On Thursday we moved back above 19 and believe we quickly hit 20 or higher. Stock is very oversold and a nice swing stock to play.

    PETROBRAS (PBR) Sold large number of 16 strike puts for this week and next when we traded in high 15s early in week. Immediately moved back above 16 and they should go off worthless, allowing me to pocket some nice change this week and next hopefully.

    APOLLO GROUP (APOL) 20 strike puts sold will be exercised this Friday putting me long the stock for next week. I will immediately sell calls and will continue selling calls weekly until the stock is called away.

    MOLYCORP (MCP) Sold 7.50 and 8.00 calls for this week and next again, and making lots of money on a stock going sideways.

    Short June Live Cattle 118 puts -- As cattle moved down this week, I sold premium of 50 cents to 80 cents. Big bullish reversal on Thursday was helpful as it makes me a bit more comfortable 7 to 8 dollars out of the money. I am betting cattle bottoms before these puts are exercised putting me long the contracts. On further strength in the next few days I will sell some out of the money calls to balance the trade delta some.

    I have a goal of 1% profit per week and this week I easily met my goal.

    Disclosure: I am long AAPL, NUAN, GMCR, HLF, MCP.

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