Traders Corner   28 comments

Today I thought I would add a new feature to Traders Corner. I am calling it pre-market movers, which basically takes some of the stocks on my watchlist and shows which direction they are taking in the pre-market. Let me know what you think:

Pre-market movers

UP: MSFT, SDRL
DOWN: AAPL, AMZN, FB, VZ

S&P 500 Daily Momentum: Bullish
S&P 500 Daily Overbought/oversold: Neutral (leaning overbought)
S&P 500 Weekly Momentum: Bearish (weakening)
S&P 500 Weekly Overbought/oversold: Neutral
S&P 500 Futures (June): Slightly negative
Overall: Is it just me, or did yesterday’s move up look pathetic? On a day when both Apple (+8.20%) and Facebook (-0.80%) had good earnings reports, the markets seemed like they were looking for any excuse to drop, and they just weren’t getting one, although they did manage to spit all over Facebook’s earnings (I still don’t get that). If markets want to drop, maybe they will get their wish today.

The S&P 500 levels to watch today:

UPSIDE: 1879 (April 23rd’s high), 1882-1885 (5 data points and March’s high), 1893 (2 data points), 1897 (April 4th’s high and the all-time high), and 1901 (top of the Bollinger Bands).
LAST CLOSE: 1878.
DOWNSIDE: 1871-1873 (5 data points), 1869 (April 17th’s high), 1867 (February’s high), 1862-1864 (4 data points), 1861 (20 day moving average), 1857 (50 day moving average), 1856 (April 17th’s low), 1854 (April 8th’s high), 1852 (April 9th’s low), 1849-1850 (January’s high and December’s high), 1846 (April 16th’s low), 1844 (April 15th’s high), 1841 (April 7th’s low), 1837 (April 8th’s low), 1834-1835 (2 data points and March’s low), 1833 (100 day moving average), 1830 (April 10th’s low), 1821 (bottom of the Bollinger Bands), 1814-1816 (3 data points), 1802 (150 day moving average), 1775 (October’s high), and 1771 (200 day moving average).

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28 responses to “Traders Corner

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  1. like the pre-market movers Ed

  2. Marshall I need to pick a dividend stock for my Mom’s portfolio. Which of your dividend stocks would you rate as the safest as to principal? I’m thinking FSC (I own this and like the monthly dividend feature, especially for my Mom) or BBEP (would prefer to avoid MLPs because of he increased tax complexity but ce la vie), mostly want safety and would like a greater than 5% return.

    My Mom is turning over her portfolio and we will need to buy 10 dividend stocks of approximately equal value over the next 10 months or so. Obthese are all intended to be LT holds.

  3. Or AOD? which also pays monthly.

    • Jeff – I would pick CSQ or AOD for safety of principal as they are both closed end funds of high quality holding, selling at a discount. So you get diversification as well.

      • Marshall, do you favor any of REITs? If not, is there a specific reason? I know you were in CIM for a short time (I’ve been an owner 2+ years). I am an owner for diversification and income.

      • Tom – two reasons. I sold my REITs last year as I was afraid how they would do in a rising interest rate environment. Given how that has stalled out, it was clearly a premature call. The second issue for me is taxes. REITS are taxed as ordinary income. A the higher tax rates in 2013 and beyond, that made true divdend stocks more attractive. I do still like CIM. I think I made a mistake selling it when I did.

      • Thank, I sometimes forget about the tax issue. I placed two low limit buys for two different REITs a month ago and two days later canceled after remembering the taxes.

  4. GTAT is starting to look weak again. If it doesn’t hold here, could see 14-15.

  5. I’ve been working on a new play the last month. I love the oil service stocks such as NOV, HAL, RIG(I own), SLB, BHI, as they always make money off the drillers no matter the price and I’ve always had good luck with them. So I’m using OIH for a weekly covered call play to avoid any stock specific risk with a goal of 1-2% Today I bought OIH at 52.18 and sold a May 02 ’14 52.50 Call for .35. And now of course I wish I would have waited a few more minutes to sell the call as it’s zoomed above 52.50 already but in reality I don’t care what it does from here as long as I keep hitting my goal and I roll it over each week.

    My trade from last week will very likely be called out today. I bought OIH at 51.26 and sold an April 51.5 call for .30. If this one keeps working well I’m going to allocate more of my portfolio to this play as it’s been a tough environment for holding equities. Looks to be a very consistent winner whereas being long the SPY right now is giving you nothing but whiplash. I’ll start posting these trades on a weekly basis.

    Consistent winners right Trader?

  6. Picked up sco yesterday for $27.46 and sold may $27.50 calls for $1.25 this morning. Also closed btu puts yesterday for +.65.

    I’m starting to pay attention more to the area of the options where price declines at the greatest rate with the goal being to sell calls/puts far enough out to be ahead of that portion of the curve and then closing as the rate of change in price decreases.

  7. Yesterday I posted that I was seeing some strength in the S&P. Unless we get a rebound, it looks like today is going to be a strong down day. With that I went back to see if I missed something and I certainly did. Even though my technical indicators were starting to show some strength, I failed to pay attention to the price action in the SPY. On Tuesday the SPY opened at its low for the day and closed at about the middle of its range. Doesn’t tell you much. On Wednesday, it opened around Tuesdays close which was close to the high for the day and then closed slightly lower. Starting to look suspect. Yesterday was my miss. The SPY opened at its high for day. This was a strong clue that we were close to a pull back. There is no way to know the size of the move, although it is not surprising since we were back at the recent highs after a pretty good run. We’ll have to see what happens the next few days to see if this is just a one day drop and the 50 day ma holds at around 1860. I’m holding my TZA for now.

    • I’m standing behind what I said earlier. Wait to see if 1830’s hold. If it does we could break a new 52 week.
      This wave trading is interesting and the does have similarities. with some of other trading styles on this blog.
      One thing is this bounce was weak. I didn’t think it would last.
      Slowly I’m learning thanks everyone

  8. Sold KLAC that I bought yesterday for 64.25. Bought it at 67.06 so OUCH!

    Otherwise just waiting on my May CCs which are giving me some nice downside protection.

  9. Brutal down day for me. I am down about 2.7% which is one of worst two days of the year. I am still up 4.4% on the year. Wishing (as well) that I had not bought KLAC yesterday. Not buying anything yet, though it have a lot of cash. I like to give these drops three days before I start window shopping. SYNA is a weird one for me, it opened up about 6%, but now is down 2%. I guess when people sell qqq, everything drops.

  10. I’m down about 2% today as well.

  11. Even though it was a brutal day, the S&P indicators were not a disaster on the daily chart. We held the 50 day ma. My biggest concern is the open was the high for the day and we closed towards the low. This is never a good sign. The SPY continues flat on the weekly charts. I wouldn’t be too concerned about today. If Monday is a big down day and we continue to see the high for the day at the open we will probably move lower. A lot of stocks sold off big today. If they push them up on Monday or Tuesday, then today will be just a bump. You can’t base your decision on one day. Lets see if we get any follow through on today.

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