Traders Corner   24 comments

S&P 500 Daily Momentum: Bearish, trending bullish
S&P 500 Daily Overbought/oversold: Neutral, leaning overbought
S&P 500 Weekly Momentum: Bearish, trending bullish
S&P 500 Weekly Overbought/oversold: Neutral, leaning overbought
S&P 500 Futures (June): Flat, leaning positive
Overall: While the technicals aren’t preventing a move up today, we are getting close to the ceiling.

The S&P 500 levels to watch today:

UPSIDE: 1887 (top of the Bollinger Bands).
LAST CLOSE: 1885 (April 1st’s high and the all-time high).
DOWNSIDE: 1883 (March’s high), 1867 (February’s high), 1864 (20 day moving average), 1849-1850 (January’s high and December’s high), 1842 (bottom of the Bollinger Bands), 1835 (50 day moving average), 1834 (March’s low), 1821 (100 day moving average), 1781 (150 day moving average), 1775 (October’s high), 1770 (January’s low), 1767 (December’s low), and 1751 (200 day moving average).

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24 responses to “Traders Corner

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  1. I see where GTAT looks to open 3 to 4% higher today. I will try for the third straight day to sell some calls on September at $22 strike. Anyone here own MNKD? I know Ed has it a year or so ago and they are spiking about 85% this morning.

    • Great news for you BC on MKND. I have entered my covered call back on GTAT. Now looking for $2.40 for the September $22. Pretty cool as I was asking $2.05 just yesterday. Will let board know if it hits.

      • Just hit! $2.40 feels like a lot of money. Looking forward to seeing the $ hit my brokerage account. I bought the shares at $17.22. So if called out, I make 4.78 + 2.40 = $7.18 with a basis of 17.22 – 2.40 = 48% return. Thanks to trader, Jeff and W Seattle for their insights.

      • Nice one Marshall

      • Seeing you in action I want be surprised to see it hit 22 next week 🙂
        I’ll let you know when I buy so you can sell.

  2. Hi Marshall, I own MNKD. Made some money on it prior to 2nd approval (got out before the actual decision), got back in at $5.20 and hung on through the dip prior to the ADCOM, looks like it will pay off. Next question is whether to stay put through the approval decision.

  3. Sold GTAT from yesterday for plus 1.06 6.1%. Couldn’t pass up a months worth of profit in a day.

    • Nice one Trader. (see, I can be civil on occasion) 🙂

    • Nice one Trader. I’ve got significant GTAT with calls at 16, 17 and 19. The 16s are looking kind of stupid. 4% profit for 3 weeks but I could have done far better. Trader is there anyway that I can extricate myself from that call short of taking a big loss by buying back the call?

      • Jeff, 4% profit for three weeks is not stupid. When I sell calls, I am always happy when the stock moves higher since it increases the chance that my profit will be realized. I’m always happy with the profit. How would you feel right now if GTAT was at 15? There is no way to get out of the call without buying to close at a higher price. I would not do that. Let it run. If you’re called out you’ll have a nice profit. You can always buy more stock. By the way, we don’t know where GTAT will be tomorrow or by the end of the day for that matter. Big pops are often followed by pullbacks.

      • All true thanks Trader

      • Jeff,

        I agree with Trader. Take the profit and wait for your next chance to play. GTAT will be a good play each month until it no longer works and 5% monthly gains add up over the year.

        The only alternative you have is buying back the call and selling at a different strike or month. Take my trade for example. I bought with an avg price of $17.18. I sold April 18’s for an avg of .85 which is a 10.2% return. I could buy those calls back for maybe 1.50 as I type. So I take a loss of .65. My basis would now be 17.83. I could sell the April 19 calls for .90. This would reduce my basis to 16.93 and a possible 12.2% return. While the 12.2% sounds like a good return it comes with added risk. The stock can easily fall back to $15 in the next few weeks. Run the numbers with different strikes and months and you will see what other possibilities are out there, but remember there is additional risk you take with each adjustment to the trade.

      • Thanks mdistas, this is good advice. I was really just wondering if there was some magic that I wasn’t aware of to extricate myself and set up a more profitable trade. Clearly there is no such animal.

      • No there isn’t. Either way you’re doing a great job on GTAT. Keep it up and your brokerage account will be very happy with you.

  4. I added SPXU at $54.80. We’ll see if today’s momentum trade works any better.

    • I sold SPXU at $54.90, and a 0.18% profit. Fortunately, the longer momentum is still working in my favor.

      • Ed, can you explain what you mean by the longer term momentum is working in your favor?

      • Trader,
        The weekly PPO and MACD are still both showing bearish momentum (although they are trending towards bullishness).

      • I don’t see it Ed. If you see bearish momentum why don’t you hold SPXU longer or buy the Inverse etf’s without leverage? Or, if we are trending towards bullishness why play the inverse at all?

      • Trader, go short at the top and long at the bottom. 😉

        As for why I didn’t hold it longer, I had work to do today. I got to the profit and took it.

  5. The S&P is approaching its recent high. If we break out here we should go higher. My indicators are pointing in that direction. If we don’t break out, I would expect pullbacks to be weak. We continue to be a long ways from being overbought.

  6. My portfolio is having one of best days of the year, up about 1.8% while market is up modestly. Obviously helps having GTAT spike 6 to 7%. I see where TC is spiking pretty nicely today as copper prices have gone up in anticipation of earthquake in chile disrupting the supply. Everyone needs to decide for themselves what to do, but this could be an exit opportunity if you believe the spike is short term in nature.

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