Traders Corner   23 comments

The technicals today are about the same as yesterday, although the bearish momentum on the S&P 500’s MACD and PPO is still ebbing. Futures are up this morning, so expect a pop out of the gate.

The S&P 500 levels to watch today:

UPSIDE: 1881-1883 (3 data points and the all-time high), and 1887 (top of the Bollinger Bands).
LAST CLOSE: 1872, inside the 1867-1877 (12 data points and February’s high) range.
DOWNSIDE: 1862-1863 (2 data points), 1860 (20 day moving average), 1857-1858 (2 data points), 1849-1854 (4 data points and January’s high and December’s high), 1839-1842 (3 data points), 1834 (March 3rd’s low), 1833 (bottom of the Bollinger Bands), 1831 (50 day moving average), 1813 (100 day moving average), 1775 (October’s high), 1770 (January’s low and the 150 day moving average), 1767 (December’s low), 1745 (November’s low), and 1742 (200 day moving average).

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23 responses to “Traders Corner

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  1. I have two tranches of GTAT 19 and 18 mar 22 calls that will probably be exercised today. I’ll post my final line when they are. One question for the Mob here. My option fees at Fidelity seem kind of high to me. Can anyone recommend a broker with lower fees? I’m looking at IB?

    • Jeff,

      My GTAT is also being called out today on the remaining shares I had bought under $11 and sold the March $11 calls back in Feb for what was a 7-8% gain in a few weeks. I’ve been called out of all my other GTAT positions as well and have been taking in 4-5% gains on average with this one and I continue to like it. Glad this one is working for you. Covered calls can be an effective strategy. I’ll be looking to take these proceeds and roll it into another position. Like I said back in Feb this one is looking good for a covered call play, and is offering good trading opportunities.

      On another note my remaining SD March $6 puts will be expiring worthless today. Sold them for an average price of .93 in 2013.

  2. Looking at possibly getting into a financial etf. There are XLF, PFI and FXO..any thoughts on which one? All have different top 10 holdings.

    • Bobb,
      I’d avoid PFI because of low volume.

      Of the other two, XLF pays a slightly higher dividend yield, but neither of them pays one high enough to be a criteria.

      For these two, their performance isn’t hugely different, so I’d lean on the old expense ratio as the deciding factor, mainly because there’s a huge difference here: XLF’s 0.18% vs. XFO’s 0.70%.

      XLF wins. 🙂

      • Would you wait to buy XLF? This would be a long term holding but the market seems so choppy lately.

      • Bobb,
        Absolutely! My bearish views are macro, which will bring down the financial sector too. Perhaps this summer might be a good time?

  3. I bought CALL this morning at 24.20. Every way I look at this stock it looks cheap, even with an 80% move up since November. I also doubled my stake in CTCM, which sold off yesterday. I bought in at 8.86. Finally, I have put in a sell order for some of my LMNS at 12.75 (recall I bought shares at start of week at 12.01).

    • I decided to follow your lead on CTCM when it reach a 8% dividend return. If they hold their dividend this will most likely be a good buy for me in that it will return what I am looking for.

    • Marshall Please tell me why call is a good investment.
      I mean yes I use magic jack but what profit is the at $25 a year. We don’t use it as a phone because well the call quality isn’t great. It used by us as voice mail only. We give that number to everyone that could sell it and people that don’t need a cell phone number and bug us all the time.

      • Bill – the story with CALL is that they are moving beyond the magic jack. They now have a free mobile app that is supported by ad revenue. It is like skype or FaceTime, but it will allow you to make VOI phone calls to actual phone numbers for free. This is a big deal for people that travel, especially internationally. I use Skype to call my family when traveling, but I have to pay as I am calling a phone, not a computer. With CALL, I can call for free. Actually, I need to download the app just to try it out myself.

      • Agree I’ll try the app thanks

  4. Looks like the miners might be catching a little break today. My tcpt is up about 4.5% and my FQVLF is up over 2%.

  5. Bought HMIN this morning for 31. They had a small earnings miss about 5 days ago and stock was off over 10%+. I’ve been watching this company for several months. This is a LT hold.

  6. Ed and Marshall how would interest rates possibly going up effect the regional banks? Would it give them a bigger boost to their bottom line than even the big banks?

    • Ojunker – my understanding is that regional banks generally gain more from higher rates that global banking type companies. I suspect a lot of this has already been priced in. PNC is one I have had on my watch list for about a year and it has simply run away from me.

  7. DIck Bove favorite bank stock is BAC, any thoughts on this?

    • Ojunker – I like BAC as long as you have a long term view. They have run up a lot lately, so it is possible they will trade lower. I have played them with BAC-WTA. These are TARP warrants that expire in 2019. So it is a leveraged play on BAC.

    • Ojunker,
      Good value play. However, I will say I used to work there, and I just closed out my checking account there last year because I got tired of their little greedy shenanigans. So I don’t like the company and wouldn’t invest in it for personal reasons, yet they do look good on paper.

  8. Wow TC exploding today!

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