Traders Corner   10 comments

Even with Friday’s market ramp at the end of the day, the McClellan Oscillator still dipped to 59, just short of being overbought at 60. With the Williams %R remaining overbought, this situation “bears” watching (pun intended). I won’t be playing SPXU today, but I won’t be surprised to see the markets dip today either, in spite of positive futures readings this morning, not to mention positive sentiment.

The S&P 500 levels to watch today:

UPSIDE: 1681 (top of the Bollinger Bands), and 1687 (all-time high).
LAST CLOSE: 1680 (July 12th’s high).
DOWNSIDE: 1676 (July 11th’s high), 1672 (July 12th’s low), 1657 (2 data points), 1654 (July 9th’s high and June’s high), 1647 (July 10th’s low), 1644 (July 8th’s high), 1642 (July 9th’s low), 1638 (10 day moving average), 1634 (July 8th’s low), 1632 (July 5th’s high and the 50 day moving average), 1622-1626 (9 data points and the 20 day moving average), 1618 (July 3rd’s high), 1614 (July 5th’s low), 1606-1610 (2 data points), 1604 (July 3rd’s low), 1597 (April’s high), 1581 (May’s low), 1572 (March’s high), 1567 (bottom of the Bollinger Bands), 1560 (June’s low), 1536 (April’s low), 1530 (February’s high), and 1518 (200 day moving average).

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Posted July 15, 2013 by edmcgon in Daytrading, Investing, Market Analysis

10 responses to “Traders Corner

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  1. Since I am comfortable that four of my UCO positions will be called out on Friday, I thought I would post the final line
    1) 12-24-12 UCO at 27.49. Sold JULY 30’s for 3.15 reducing my basis to 24.34. Called out at 30 for a profit of 5.66 23.5%

    2) 12-27-12 UCO at 29.00 Sold July 29’s for a total of 7.00( sold calls three times) reducing my basis to 22.00. Called at 29 for a profit of 7.00 31.8%

    3) 3-14-13 UCO at 28.32 Sold July 29’s for a total of 3.24 ( sold calls three times) reducing my basis to 25.08. Called at 29 for a profit of 3.92 15.6%

    4) 6-10-13 UCO at 30.00 Sold July 27’s for 3.53 reducing my basis to 26.47. Called out at 27 for a profit of .53 2.0%

    I have one other position. 5-20-13 UCO at 30.96. Sold October 26 calls for 6.20.
    So far, this play has worked well. With the big run up in oil, I’m not sure what I’ll do next week. If oil is some where around it’s current price, I will probably buy UCO and sell in the money calls. Yield will not be as good, but the risks will be reduced if oil starts to drop.

  2. Trader – those are excellent numbers for what you have described as a relatively low risk play.

    • Assuming oil stays at this level, I should be able to keep the risk at an acceptable level by selling in the money calls. I’ll give up some yield, but should be able to get a return exceeding what I could get with dividend plays. The risk is a big drop in the price of oil which I don’t see coming at least in the near term. Even if it drop to 90ish, I should still be able to make this play work over time. Actually, with oil at this level it will be interesting to see how this works when the risk is to the downside. There is no risk to this play as long as oil is going up.

    • Thanks for the reminder of HILL. It was on my watch list 3 years ago and I had totally forgotten about it. I bought back a little since you mentioned it last week.

      • Glad to see someone profiting from it. I made 4.4% in a month and then sold. Since then it is up 34%! Whoops! Would have helped to pay for our summer vacation.

  3. GTAT is on fire for me. Up over 7% today and up 71% since I bought march 4th at 2.73.

  4. Heyyy Trader…
    I believe you gave an assessment a while back on NUGT?? The question was about another “reverse” split, would welcome your pearls of wisdom on this. Thanks a bunch!

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