Traders Corner   31 comments

The S&P 500 futures are up this morning, but the technicals are by no means oversold. In fact, the weekly Williams %R is still overbought, and the long-term McClellan Summation Index is still elevated near overbought. However, the VIX is still at a rather complacent level of 16, so whatever worry there is in the markets seems minimal. Just remember that we are in a sentiment-driven market, and news events could cause this market to turn on a dime. It is probably a good market for daytrading, but keep tight stops.

The S&P 500 levels to watch today:

UPSIDE: 1849-1850 (January’s high and December’s high), 1857 (March 3rd’s high), 1867 (February’s high and the all-time high), and 1889 (top of the Bollinger Bands).
LAST CLOSE: 1845, inside the 1840-1847 (8 data points) range.
DOWNSIDE: 1834 (March 3rd’s low), 1822 (50 day moving average), 1818 (20 day moving average), 1793 (100 day moving average), 1775 (October’s high), 1770 (January’s low), 1767 (December’s low), 1755 (150 day moving average), 1747 (bottom of the Bollinger Bands), 1745 (November’s low), 1737 (February’s low), 1729 (September’s high), and 1728 (200 day moving average).

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31 responses to “Traders Corner

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  1. I just saw on CNBC where GTAT is up $1.25 in early trading. If that holds, it will be up 86% just since January 1st and almost 500% since I bought them in March last year at 2.73. I now think they can reach $30 in next 18 months.

    • Great call Marshall

    • Very nice.

      Robb

    • Great call Marshall, Wish I’d stayed in it longer

    • Great Pick!!! Congrats. Just picked up some LMNS at 12.22.

      • Lynn – very savvy timing. It is over 12.70 right now. Pretty funny, I wrote on my blog this morning that I now believe GTAT could be a $30 stock in next 18 months with all their catalysts. Now I just saw where GS has initiated them as a “buy” with a $25 PT. Finally, in the thank God for unanswered prayers category, I am happy my MBUU order did not fill yesterday. It is up 2.5% this morning.

      • Marshall, thank you for all your picks. They have done very well for me this year. Too bad I sold gtat too early. Hopefully it will come down a bit for us to buy.

  2. Ok Marshall what is your next 500% gain recommendation? Lol

  3. PRAN 11.10

    • Out for plus 29 2.6%. Didn’t want to get greedy since it had a strong opening and at the top of my technical indicators. It’s not too late to get into GTAT. Take a look at a one month daily chart. Down days are followed by up days and it moves back to where it was or higher. I’ll look to add on a down day if we get one. Call premiums are good. Always a tool if it does pull back.

      • Are you trading GTAT or holding mid to long term?
        I think I see the PRAN pattern though I am still a little fuzzy where it will top off on the morning run.

        Robb

      • Robb, GTAT is a conservative play for me. My goal is 5% or better each month. Depending on how the charts look, I’ll try to buy and hold with a combination of covered calls to hit my goal. It looked like it was going to trade flat so I sold calls yesterday. Surprise, nice jump today. That is ok. I’ll still hit my goal and the higher it goes the less risk I’ll lose my gain. As far as when to get out of PRAN, no way to know. Set a goal, hit it and get out. I didn’t take as big a position this morning because it opened higher than I like to see. When it reached overbought on my 3 minute chart I decided to bail. It’s too volatile to get greedy. Consistent winners is what it is all about with this one.

      • Thanks.
        I have been using UCO covered calls in my IRA and the one for March should close out (Mar $30 calls) with a 8.1% gain (bought in mid Dec). Unless oil nose dives, which seems unlikely given global tensions. Have another UCO position with deep in the money Apr covered calls that will return 6.5% if it gets called out. So far UCO has been very low risk and provided an excellent return in both 2013 and 2014 for me.

        Robb

      • Glad to hear Robb. Nice returns for low risk.

  4. In PRAN at 11.07 out at 11.42

    Robb

  5. Didn’t play KNDI this morning. Pop was too big on the open. Probably won’t play today.

  6. Wow, LO has been killing it the past two days. Hard not to take some profits off the table.

    • If I owned it, I would take some off the table. For those of you interested in silver the next couple of days should be interesting. If it can recover most of the early morning drop and close somewhere close to yesterdays close that would show some real strength.

      • Great call on LO. I am kicking myself for not buying RAI a couple weeks ago, it is up over 10% (PM is up 3%). I am watching silver with you trader.

    • There is a rumor that RJR is going to make an offer to buy LO?

  7. GTIV is an interesting stock to watch today. They are down 9% (just under $10) on a poor fourth quarter. But they are projecting $0.90 to $1.15 in 2014. I am. I am not gong to buy right away, but will be watching for next week or two to see if I can get a puke price entry.

  8. I just increased my position in RIOM by 67% at 2.24. It was a small position before (#31). This will bump it to #21. I also put in a sell order on MBUU at $19.18. That will pay for the RIOM purchase 3x.

    • My MBUU just sold at 19.18. I almost made 10% on this trade (bought at $17.50 on January 31st). It was a sizable position, so $ wise, my best single trade so far in 2014 (if you count the two tranches I bought of FGL in mid February, that would be the best).

  9. Zero Hedge put up a story about Russia doing a Missile Test. I can’t find it on any other News Group. Do ZH do Fake News ??

    All the stocks on my Watch list are up and they hardly moved yesterday. Not what I expected.

    Back to working in the Garage (need more Space)

    Steve

    • OK, Reread the article and the 10 PM time I saw was Russian time not Last Night but recently today. Not much to talk about I guess since the North Koreans do the same thing all the time. Fake Muscle Flex …. ha ha

  10. I have seen kcap recommended in several different places, big dividend and margins. But uneven growth, thoughts?

    • Bobb,
      They should be reporting their quarterly earnings in the next week or two. I wouldn’t buy it yet, but they do look interesting. Their dividend payout ratio needs to come down some (144%).

      • Finviz has the payout ratio= 66%. I calculated it at 92%. Take your pick 🙂 Short interest is around 10%, not especially high for this type of business but levered free cash flow will not cover the annual dividend.

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