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Mapping Market's Every Move! (Part I)

|Includes: AA, AMGN, CME, GOOG, ICE, SPDR S&P 500 Trust ETF (SPY)

The market opened higher today.  But, the selling pressure was still heavy, and, the market soon sank lower.  In the Trading Room today, ICE and CME puts were still among the favorite plays (see news from yesterday):

billbigd July 8, 2009 6:44 AM
ICE baby ICE $3 to 13.6

Frosty Muggs July 8, 2009 6:49 AM
Congrats on that ICE play billbigd. "Stay thirsty my friend." LOL

MarketQuest July 8, 2009 6:49 AM
Way to Go BBD!

tc924 July 8, 2009 6:53 AM
BBD - great trade!

In the morning, I called out the near-term targets for CME and ICE:
HappyTrading July 8, 2009 7:06 AM
might go to $260!

HappyTrading July 8, 2009 7:18 AM
to $85?

Through out the day, I did quick trades on July puts in both CME and ICE:
July 8, 2009 7:36 AM
scalping puts...

July 8, 2009 7:31 AM
could go down more... 270 puts: scalped $1 from $8 to $9;

July 8, 2009 8:03 AM
those 270 puts are over $13!

July 8, 2009 8:29 AM
those 270 puts are over $15!!

July 8, 2009 8:28 AM
scalped $1.4 on jul 90 puts from $4.4 to $6; might have another $0.5 to go...

July 8, 2009 12:11 PM
those 90 puts are at $8 now.

With about 1/2 hour left in the trading, I also cautioned out to close these puts:
July 8, 2009 12:35 PM
there's that $260...

I think we're about done on the ICE/CME put plays for now...

The CME July 270 puts went as high as $16.2 and the ICE July 90 puts went as high as $8.2!  CME went just below $260 before bouncing up.  ICE went all the way to $83.72, but, closed above that $85 mark.

Besides ICE and CME, we also jumped back in on those SKF calls and took partial profits on the way up:
09:45 | HappyTrading SKF ($49.25) Sold to Close SYJGR Jul 44 calls, at $6.00 +54% (Day High)
09:21 | HappyTrading SKF ($48.75) Sold to Close SYJGR Jul 44 calls, at $5.50 +41%
08:56 | HappyTrading SKF ($48.00) Sold to Close SYJGR Jul 44 calls, at $5.00 +28%
08:01 | HappyTrading SKF ($46.50) Bought to Open SYJGR Jul 44 calls, at $3.90

We traded these same calls earlier in the week, and our original entry was $2.35, giving us an overall gain of more than +100%:
July 06, 2009
07:41 | HappyTrading SKF ($46.10) Sold to Close SYJGR Jul 44 calls, at $3.50 +49%
July 02, 2009
12:04 | HappyTrading SKF ($44.20) Bought to Open SYJGR Jul 45 calls, at $2.35

These SKF 44 calls traded as high as $6 (which we got on our last exit).  They closed at $4.5.

From the charts of the market indices, VIX, and leading stocks, we were able to pretty much map out the market's next movements throughout the day.  With about an hour left, we started to see the market bounce:
July 8, 2009 12:12 PM
a bit choppy; shorts start to cover?

July 8, 2009 12:15 PM
could be heading back up to test 880... see my comment at 9:12 PST this morning...

July 8, 2009 12:22 PM
would be funny if the market closes green today.

if they beat, we're gonna see some squeezing in the mining stocks tomorrow.

Both the Dow and Nasdaq made it back into the green.  SPX did test 880 and closed just below.

If you're actively trading, and find yourself wondering where the market is heading, you should really consider joining our Trading Room.  You'll get real-time comments, like the ones above, to inform you what the market is likely to do next.  You'll also get a community of traders that you can bounce off trading ideas and receive market information from.  To subscribe and find out more about our services, please visit our Premium Services page (click here).

(to be continued...)