Traders Corner   28 comments

The markets have made it clear they don’t like the Fed’s taper. However, yesterday’s drop brings us a lot closer to extreme oversold conditions. But we aren’t there yet, so the bears still rule the markets, although S&P 500 futures are up slightly this morning.

The S&P 500 levels to watch today:

UPSIDE: 1775 (October’s high), 1779 (January 28th’s low), 1781 (bottom of the Bollinger Bands), 1790 (2 data points), 1793 (January 28th’s high), 1795 (January 27th’s high), 1812 (50 day moving average), 1815 (January 13th’s low), 1820-1821 (2 data points), 1823 (January 6th’s low), 1826-1832 (8 data points and the 20 day moving average), 1835 (January 17th’s low), 1837-1840 (7 data points), 1843-1847 (7 data points), 1849-1850 (January 21st’s high, December’s high and the all-time high), and 1872 (top of the Bollinger Bands).
LAST CLOSE: 1774.
DOWNSIDE: 1772 (January 27th’s low), 1770 (January 29th’s low), 1767 (December’s low), 1746 (November’s low), 1729 (September’s high), 1709 (August’s high), and 1704 (200 day moving average).

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28 responses to “Traders Corner

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  1. I see where GTAT is up in early trading. There is an article about AAPL patenting sapphire component production method by techcrunch. Also a question to our options experts out there. There is a note saying that GTAT is attracting higher than normal volume in put selling. What does that mean? Is someone very bullish on the stock if that is happening?

    Thx

    • Marshall, it depends. For the puts to be sold, there must be a buyer so to me it comes down to the premium they’re being sold for. If the premiums are strong then people are scared and willing to pay for some downside protection. If the premiums are weak, then people are bullish on the stock as people are willing to sell naked puts and the premiums are low enough to interest owners of the stock in purchasing a little insurance. What the article most likely means is that there are more people trying to sell than are looking to buy so premiums should be weak. It just depends upon what the author is trying to do with his article and what he really knows about options. I don’t have time to look this morning to give an opinion on the strength of the premiums.

  2. I managed to get a half position after the close last night at 9.63

  3. Marshall market is looking up today in spite of the Emerging Markets drop. What say you about Twm?

  4. Sold twm at 50.44 for a small loss. Continuing my losing streak on leveraged short etfs.

  5. Sold some of my ANGI position for 17.59 plus 94 5.6%. ANGI has held up extremely well which makes me think expectations are pretty high going into it’s earnings announcement. If it doesn’t blow them out of the water it may drop big. I thought it best to take some profits while I had them. I may sell the balance before earnings if it continues higher.

    • Trader, I think that the target for ANGI is around ~$20-21 due to the volume pocket immediately above its current location. Even with the current pullback today, everything seems to still indicate that it’ll keep going higher.

      • I’m thinking the same number, that’s why I didn’t sell the whole position. I may add again on these pullbacks. They seem to be buying opportunities. I may daytrade up to earnings if this pattern continues.

      • While I hadn’t looked at ANGI since the last options expiration, I decided to give it another shot based on its current position and the volume pocket above. I bought Feb $15s (I decided to go in the money because the Implied Volatility is so high) for $2.65. If we actually get to $21, the ROI should be around 120%. If it only gets to $19, the return should be like 50%.

      • JMB, good luck to us. 🙂

  6. Looking at stocks in the news today, I see where NSR is down almost 20%. With the drop, by most metrics they look very cheap. However the issue is that they get a majority of their revenues from a contract with the FCC. That contract is apparently at risk. The stock is now too risky for me. But I point it out to our options experts as this is a stock that will likely either go up a lot or down a lot when that contract is finalized. It may feel a bit like a smaller pharma company when FDA opines on their testing.

    • Marshall, the technicals on NSR have been weak since the first of the year. Looks like someone knew this was coming and started to distribute. I see no reason to buy this one. We’re seeing a lot of volatility this year. I think it is best to stay with stocks that are showing strength. GTAT looks good. It’s at the top of it’s range so it might be best to see if it breaks out or how it reacts on pull backs. It’s on my watch list.

  7. It is a drag – unlike the smarter poster Jeff, I have held my TWM today as I bought it as a hedge, not as an investment. But it is certainly a drag today as it is my second largest holding and it is down 4%! But the rest of my portfolio is doing quite well, so I am still up 78 basis points overall. I can live with the drag a while longer.

    Des anyone else hold the TC-PTs? I am trying to find out when they go x dividend for scheduled Feb 15th payment. Last year it was 1/29 and I am a bit nervous that I have not seen anything anywhere. I even reached out to their IR department and got radio silence. With all the cash flow and solvency chatter, you think they’d be chomping at the bit to announce the dividend.

  8. PRAN has shot up like a rocket. Now, will it fall like a lead balloon? Hope someone else bought this one.

    • Wow, up 20%. Aren’t you capped out at some point? I have following the bio tech plays here. It is fast and furious. I have actually typed in orders for a couple, but chicken out.

      • Marshall, I am with the Feb calls I sold. Not a problem for me. Less risk and better odds that I will get the return I was happy with.

  9. ANGI daytrade for plus 42 2.4%.

  10. Hey Ed, PVCT is down 28% to 1.40 (so far) today. If it goes under a $1 is it a buy again?

    • Get it under 10 cents/share, and then I’ll be interested. I just don’t like the way their management is handling things. I won’t say they are phony, but I’m not getting good vibes either.

      If I’m going to take a risk on PVCT, I want it at a bargain basement price.

    • Smart thinking but I may still be tempted if it gets that far.

  11. Two more technology stocks miss expectations — Amazon and Google.

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