Traders Corner   20 comments

Same old story: S&P 500 weekly technicals overbought, daily technicals neutral. While Friday’s action had a bullish feel to it, futures are pointing down this morning. It is almost like the old cartoon, where Bugs Bunny points in two directions as he tells the buffoonish bad guy, “He went thataway!”

The S&P 500 levels to watch today:

UPSIDE: 1843-1845 (3 data points), 1849 (December’s high and the all-time high), and 1868 (top of the Bollinger Bands).
LAST CLOSE: 1842.
DOWNSIDE: 1840 (2 data points), 1837-1838 (2 data points), 1827-1832 (6 data points), 1823 (January 6th’s low), 1821 (20 day moving average), 1813 (November’s high), 1800 (50 day moving average), 1775 (October’s high), and 1775 (bottom of the Bollinger Bands).

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20 responses to “Traders Corner

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  1. Bought my first stock since December 11th this morning. went with SIRI. This is a company that Liberty media is looking to acquire but their initial bid seems low in many ways. So it is a bit of an m & a play that a higher bid will be made. I am in at 3.73.

    • Marshall,
      I’ll be joining you in a minute on that one. I’m not a big Sirius fan, but that bid is far too lowball.

    • Marshall, I was surprised by this pick. Doesn’t seem to be your style.

      • Trader – i have done this several times before, looking at stocks where a bid to take them over has been made. Generally the downside is limited (unless the bid falls through). I had been kicking it around for almost a week, and then Barron’s had a good article about it on Saturday.

  2. Bought ANGI this morning @ 14.73. Sold Jan 15 covered calls for .46 reducing my cost to 14.27. If I’m called out, my profit for the week will be .73 5.1%. If not called the return on my money will be 3.1% Charts look good. ANGI was mentioned on Ibankcoin.

  3. Going on buying spree today. Just bought KLIC at 12.14. This is one of my larger holdings, just increasing position by 15% on share price weakness. This is a company that has potential catalyst of 6.90 per share in cash, at some point I think they will announce a dividend or major share repurchase.

  4. Put XONE on my watch list. Charts look strong and call premiums are good. It may run away from me, but I’m going to try and pick it up at a lower price. Thinking around 65 or close. Another ibankcoin idea.

  5. Just an idea taken from something I read at ibankcoin (for a change:))
    http://ibankcoin.com/flyblog/2014/01/13/the-hottest-sector-is-maddening/
    Thinking about buying some out-of-the-money options (call and put) for AMRN – doesn’t matter what side it goes, as long as it goes far enough.

  6. Is anyone thinking about PMs?? Could they be bottoming? I have a small position in AGQ that I started last week. Thinking about doubling, but can’t decide. Yours thoughts will be highly appreciated. 🙂

  7. This is my worst day since November 7th. Down about 1.4%. I have had a great run between 11/7 and yesterday (up about 12%), so was clearly due for a bloody nose. I would be fine with a correction, sitting on a pretty large component of cash. Still, we are a long way from calling this a correction, I show market down a bit more than a percent since start of year.

  8. I added a small position of SPXU at $15.81. When the S&P 500 broke below the 20 day MA, I got a very bad feeling about this. Call it a momentum play.

    • Ed, use the e-mini S&P 500 ticker esh4. We may pull back to the 50 day and bounce. The e-mini is very useful after hours. Looking at the RSI I’d like to say the 50 day holds.
      After watching e-mini and the s&p pre market many of shorts sells would have been eaten up.

      • Bill,
        It’s funny you mention that, because the 50 day MA was the next level I was looking at. I’ll probably sell SPXU close to there.

  9. Got back into gtat at 8.69.

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