Traders Corner   27 comments

S&P 500 futures are up this morning, even as the Bollinger Bands continue to contract. If the market doesn’t start showing some positive momentum within the next few days to a week, this could mean we are in for a larger bearish move. Be careful here.

The S&P 500 levels to watch today:

UPSIDE: 1843-1847 (6 data points), 1849-1850 (December’s high and the all-time high), and 1855 (top of the Bollinger Bands).
LAST CLOSE: 1838, inside the 1837-1840 (6 data points) range.
DOWNSIDE: 1835 (January 17th’s low), 1834 (20 day moving average), 1827-1832 (6 data points), 1823 (January 6th’s low), 1821 (January 14th’s low), 1815 (January 13th’s low), and 1814 (bottom of the Bollinger Bands).

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27 responses to “Traders Corner

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  1. Keep an eye on Sotheby’s (BID). If you believe we live in a “rich get richer” economy, BID is your play on it. It’s approaching an inflexion point. If it looks like it will finish above $53.50 at any time, that would be bullish and should be bought. On the other hand, if it finishes below $52, I would suggest sitting back and waiting to see how far it will drop. When it finds a bottom, I would definitely want to buy it.

  2. Sold some UCO this morning.
    1-7 @ 29.10. Sold @ 29.84. Plus .74 2.5% Looks like UCO might run into some resistance here. Hit my monthly goal of 2% on this play so I didn’t want to take the chance of letting the profit slip away. Still have a position covered with Feb. 31 calls.

    • Bought UCO 1/7 as well, sold 1/21 for 2.47% profit.
      I have been watching ANGI but have made no moves with it yet.
      Still have two December UCO positions. I bought to close the calls on those positions in mid-January (UCO was trading ~28) am looking to sell covered calls on my positions depending on what UCO does the next week or two.
      Thanks for posting Trader.

      Robb

  3. Sold ANGI.
    1-15 @ 14.83. Sold @ 15.63. Plus .80 5.4%. I’ll rebuy if it breaks and holds above 16 or drops to 15ish and holds. This has been a great trading stock. Also has nice option premiums to help work out of a trade that doesn’t work right away. Thanks again JMB for bringing ibankcoin to our attention.

  4. Bought FGL this morning at 19.75. This is a continuation of my buying IPOs post IPO. I had good success with VJET and ATHM late last year. This is meant to be a short term play as they come out of their quiet period and analysts start issuing reports.

    • Marshall, I have followed you in at $19.54. It is an interesting play which I am going to watch carefully. Best of luck on FGL.

  5. Thanks for the tip Trader. At work I was watching oil price and not charts. Saw your post and looked, and you could be right.
    Final line bought last Tuesday 28.34 sold 29.59 today.

    Now what’s in store for over sold oil? $92 before $96?

    • Nice trade. My guess is oil will run into some resistance at the 95-96 level. I don’t know if it will drop much. Might trade sideways for a while. Until the range changes, I think you have to play the 92-96 range, give or take.

  6. Bought NTC today at $12. This is an extremely boring Closed End Muni Fund. The benefit is that they trade at a 12% discount to NAV and they have a 5.7% yield which is tax free in CT. I am 54 years old and have decided that I need more of an income stream. Muni funds can play a key role in that. If one invested $50,000 in it today, and then reinvested all dividends, the income steam would increase from 2,850 per annum right now to 5,244 per year when I retire at 65. Not sexy, but it think part of sound financial planning. I am not trying to get rich, just trying to have a comfortable and secure retirement. So a theme for me will be to start ratcheting up these sort of investments.

  7. What do you guys think about gold/silver at this point?? I have been reading a lot of chatter about them bottoming or that from a technical point of view that they are ready to go up.

    • ted, I own a position in AGQ. It looks like silver has been forming a base for quite some time. I would not expect silver to move much lower from here. If you are interested in a silver trade, I would suggest a partial position. Seems like the risk/reward is decent at this price. Might need some patience with this one.

      • Thanks Trader. I do own a partial position in AGQ(a small loss as of today)…Have been thinking about doubling lately. But there is a reverse split of 4:1 happening for AGQ soon. How do you think that will affect the price??

      • I don’t think it makes much difference. The dollar value is still the same.

  8. There was discussion on RGR last week and I believe several thought it was a good buy. It has dropped to $78.14; is it still a good buy. Trader from a chart point of view do you believe RGR is a good buy? I do like the current dividend return while waiting for it to go up but the dividend is anything but safe when you look at how it bounces up and down on a quarterly basis.

    • Tom,
      Unless the markets decide to correct, this may be the best price you’ll get on RGR. I do like it better than SWHC, if you’re looking for a gun maker. Personally, I’d root for a market correction and hope for a better price.

      • I am not a gun lover or even own a gun. However, I do enjoy spending money and if this a winner stock then I will buy — just like I have tobacco stocks, etc.

      • I wasn’t suggesting you were looking to buy a gun, just a gun maker. When I think of stocks, I think in terms of “buying the company”. 😉

      • Sorry, I must be a little touchy today — must be all the damn sunshine and heat. Suppose to hit 79 degrees today in Tucson, AZ.

    • The weekly chart looks ok, the daily looks a little scary after the last two days. If you like the company, I would suggest a partial position ( maybe 25%) of what you want to buy. If it starts to level out or bounce right back you can add more. I wouldn’t go all in yet.

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