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  • More New Highs!! (A Quick Double In 21 Minutes!) 1 comment
    Sep 17, 2009 12:19 AM | about stocks: NOV, DO, SLB, RIG, AAPL, GOOG, AMZN, GS, HIG, PRU, BLK, COF, CME

    Yesterday, in my article, I said,

    "I think VIX will test 23 again tomorrow.  If VIX breaks below 23, I think we'll see SPX above 1060!"

    Today, VIX broke below 23, and SPX went above 1060.  Although VIX bounced in the afternoon, the market just kept on going higher.  Most sectors participated in the run-up and the market indices recorded new highs for 2009!  Financials did some catching up today, with GS closing at almost $180.  Other gainers include:  HIG +10.69%, PRU +7.35%, BLK +3.13%, and COF +4.22%.  In our Trading Room, I mentioned early in the morning:

    September 16, 2009 7:03 AM
    FAS
    has room for $87 to $90 this week...

    At the time, FAS was trading around $82.  FAS closed at $88.04 today!!  Our members that played FAS in the morning scored some big wins:

    myladay September 16, 2009 9:30 AM
    Out of FAS 105 % gain [intraday]
    and AAPL 95 % gain [intraday]
    Tks Happy

    Commodity sectors continued to be strong and the oil services broke higher:  NOV +3.62%, DO +2.28%, SLB +4.31%, RIG +2.82%.  We cashed out our trade on RIG.  First batch was exited yesterday at +25% and today at +41% gain:

    September 16, 2009
    07:36 | HappyTrading RIG ($84.50) Sold to Close RIGJP Oct 80 calls, at $6.20 +41%

    September 15, 2009
    01:01 | HappyTrading RIG ($83.33) Sold to Close RIGJP Oct 80 calls, at $5.50 +25%

    This trade was opened on Thursday last week:
    September 10, 2009
    12:36 | HappyTrading RIG ($81.70) Bought to Open RIGJP Oct 80 calls, at $4.40

    These options traded as high as $7.29 and closed at $6.9.

    We also took more profits on our LVS play at +129% gain:
    07:32 | HappyTrading LVS ($20.30) Sold to Close LJJJQ Oct 17 calls, at $4.00 +129%

    CME finally cleared the resistance at $285 and was a big play in the Trading Room as I commented:
    September 16, 2009 8:48 AM
    PRU/HIG
    running up...

    GOOG
    $485+

    AAPL
    jammin'

    CME
    $285+

    September 16, 2009 8:54 AM
    CME
    running! I'm on the sept 290s; this could be a daily double!

    This did indeed turned out to be a "daily double" (this is the name that we give to trades that double intraday).  This particular daily double only took 21 minutes (from 8:39 AM to 9:00 AM PST)!!

    I entered the Sept 290 calls at $2.7 and exited 21 minutes later at $5.5 for a +104% gain!  These options traded as high as $5.6 today and closed at $5.2.  I think there may be more opportunities tomorrow if the market stays strong.

    Techs were also very strong.  AAPL popped +3.83% (or $6.71), closing above $180 (see my article on 7/21/09 about AAPL reaching $180, CLICK HERE).  GOOG finally had a big move, up +2.25%, or $10.75.  AMZN jumped +8.56% to close above $90/share, as it got an upgrade to "buy" from an Bank of America analyst.

    The Dow closed up +108.3 points; SPX added +16.13 points; Nasdaq gained +30.51 points:

    Besides SWH (software), most sectors closed in the green (investors were perhaps cautious ahead of ORCL's earnings report after the market today).  XLF (financials) jumped +3.46%.  Commodity sectors stayed buoyant: OIH (oil services) +3.24%, XME (metals and mining) +3.59%, GDX (gold miners) +2.45%, XLE (energy) +2.48%.  USO (oil) and UNG (natural gas) made further advances.  GLD (gold) and SLV (silver) were up, with gold trading above $1015/ounce.  FXI (Chinese ADRs) hopped +3.57%.

    SPX

    SPX added +16.13 points to close at 1068.76.  The daily MAs and MACD continued higher.

    Nasdaq

    Nasdaq gained +30.51 points to close at 2133.15.  Its daily MAs and MACD curved up.

    The market continues to make new highs.  The Dow is closing in on 10,000!  Certain sectors are starting to look a bit toppy and may need to take a breather.  For example, coal stocks have gone quite far in a week (check out the daily chart on ACI, which has gone "vertical"!!).  VIX tested 23 once again and bounced back to close above.  I think we'll start to see some profit-taking tomorrow.  We already saw some today on LVS and WYNN, both of which made new highs in the morning and closed in the red.  There are still stocks just getting ready to break out.  So, we may see some mixed actions tomorrow. 

    Good night and HappyTrading! ™

    Stocks: NOV, DO, SLB, RIG, AAPL, GOOG, AMZN, GS, HIG, PRU, BLK, COF, CME
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Comments (1)
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  • bryanboy
    , contributor
    Comment (1) | Send Message
     
    Hi,

     

    It seems that you seldom talked about option spread strategies. I am just starting to learn options trading and was wondering if it's too risky just trading calls/puts since you need both the direction and level of volatility to be "correct" to make money.

     

    Any advice will be appreciated :)

     

    Regards
    Bryan
    19 Sep 2009, 06:29 AM Reply Like
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