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Da Bing's  Instablog

Da Bing
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Background in Real Estate, Finance and IT. Dividend Growth seeker and occasional options player. Use the T Theory Method for buy and sell signals.
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  • Market Snap Shot 9/26/14

    Today's selloff has us at the August VO lows. Near term support is at -70.69, weakness going into the weekend could result in a larger selloff.

    For the long term investor looking for value after this selloff there are options. For a long term dividend play $DOV looks good at $80.67. Today's dip in Apple makes the Oct 18 $100 calls for $1.45 attractive.

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    Here we see the MFI at the mid channel. If it were near the bottom channel with the VO at the current level, we could expect a market rebound. This current level indicates a further retreat is possible.

    While I am a long term bull on US equities, the S&P seems to have a difficult time getting over the 2,000 mark. Cash is king.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: AAPL, SPY, DOV
    Sep 26 1:37 AM | Link | Comment!
  • Market Shap Shot 9/23/14

    The recent sell-off in the market has some talking about further corrections and others looking for buying opportunities. Having a look at the T-Theory Volume Oscillator, we appear to be taking a breather, but have not corrected to the point of February or August of this year.

    (click to enlarge)

    I prefer to take positions with ETFs or Leveraged ETFs when this oscillator gets into extreme over bought/oversold conditions. Taking a look at the last week in 2013 and the beginning of Feb. 14 shows us how we can be patient for these conditions to buy the turnaround.

    (click to enlarge)

    Selling going into 2014 could have profited in a 120 point move in the S&P, while buying the Feb. 14 dip saw a move from ~1740 to 2000. The key takeaway here is to avoid over trading and getting caught up in the day to day market gyrations. Wait on extreme conditions and take the contrary position.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: SPY
    Sep 23 1:15 PM | Link | Comment!
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