Traders Corner   39 comments

Bullish momentum on the S&P 500’s daily MACD continues to taper, down to 1.2 after yesterday, after the S&P 500 flirted with the 20 day moving average before returning to flat. The futures are up this morning, so we should get off to a bullish start today. However, over the past week, we have hit the 1881-1883 range three times, and finished the day lower all three times (1877, 1878, and 1867). Keep an eye on that level. It could be a good shorting opportunity.

The S&P 500 levels to watch today:

UPSIDE: 1870-1871 (2 data points), 1874 (March 6th’s low), 1876-1877 (3 data points), 1881-1883 (3 data points and the all-time high), and 1888 (top of the Bollinger Bands).
LAST CLOSE: 1868, inside the 1867-1868 (2 data points and February’s high) range.
DOWNSIDE: 1863 (March 11th’s low), 1857 (March 3rd’s high), 1854 (March 12th’s low), 1852 (20 day moving average), 1849-1850 (March 4th’s low and January’s high and December’s high), 1834 (March 3rd’s low), 1828 (50 day moving average), 1816 (bottom of the Bollinger Bands), 1806 (100 day moving average), 1775 (October’s high), 1770 (January’s low), 1767 (December’s low), 1764 (150 day moving average), 1745 (November’s low), 1737 (February’s low), and 1735 (200 day moving average).

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39 responses to “Traders Corner

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  1. I think we have a major short squeeze today on CALL. This is the company that makes Majic Jack. I mentioned them here last October/November. They announced strong earnings and guidance last night. And for some inexplicable reason,, 35% of shares are shorted. Stay tuned.

  2. One of Marshall’s picks. ATVI is up 4% premarket on the upgrade.

    “Activision Blizzard Inc. (NASDAQ: ATVI) was raised to Buy from Neutral and the target price was raised to $25 from $20 at Bank of America Merrill Lynch.

  3. Still no weakness in the S&P. I wouldn’t even think about shorting this market.

  4. Is anyone here invested in energy sector? SDRL, LINE, KMP, KMI all have nice dividends and are at 52 week lows, anyone looking?

    • Bobb – the Kinder companies were written up very negatively by Barron’s regarding their accounting approaches. I own BBEP. KMF is a solid closed end fund that is well managed and will allow you to avoid K-1s.

      • What about RIG?

      • I saw Leon Cooperman on cnbc the other day. He commented that rig is still in turnaround mode. But he felt that by the end of the year demand for their drilling would pick back up. Too much uncertainty for me – but for those willing to take a little risk, it could be decent play.

      • I hear you; it’s getting close to attractive to me. May initiate a small position in the next few weeks

    • bobb, I owned SDRL until it recently went ex-dividend. Sold it for a modest profit because there was a reasonable question about the sustainability of the dividend. I think I did see that they recently sold a big rig to a related co. for about $800 million? which might help them with their dividend.

    • Thanks Marshall it looks like KMF yields about 5.5-6% normally.

    • I saw were RIG was among the 10 worst performaning stocks in the S&P the last 5 years…..this would be a turnaround play.

    • Ed, I own a small position in MRO, wondering if I should add to it. Ok dividend and price target(s) is $42?

  5. I read this morning the most bullish article I have ever seen on GTAT. Trying out my cut and paste (http://seekingalpha.com/article/2083553-gt-advanced-technologies-severely-misunderstood-and-undervalued-by-wall-street-analysts). He puts a target price of $64 to $85 a share. If that happens, I will make use I call you guys every now and then from my beachfront home in Hawaii.

  6. Checked on RGR this morning. Guess everyone has decided President Obama isn’t going to take their guns.

  7. I sold FXP at $78.08, which is a 3.06% increase overnight, although only 1.93% profit overall.

  8. Trader or any of you other Trade gurus out there, I’m considering whether to sell apr 19 AVG 22.50 covered calls for .55. Trying to protect some gains and ensure a nice profit if they are called out. My AVG shares cost is 19.63. Want to make sure I’m doing this right. If I get called out, I will have a profit on the stock of 2.87 plus the premium of .55 for a total gain of 3.42 or 17+%? Am I reading this correctly?

  9. My C limit buy price of $47.47 hit giving me an average buy price of $49.38.

  10. Time to start looking at the S&P 50 day moving average. I show around 1830. No big deal if we drop to that and hold. The 100 day is around 1810.

  11. Anybody buying?

    • Nope. I’m waiting to see if this is a bump, pot hole, or a sink hole. There is a good chance we’ll hit the 50 day ma or get too close to it. I want to see what happens there. I have enough short positions to beat Marshall to Hawaii if we crash.

  12. I added SPXU at $58.80. This is an overnight trade. MACD has turned bearish. Unless we get a big pop in the last 5 minutes, the S&P 500 will finish below the 20 day MA (1853).

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