Traders Corner   21 comments

Pre-market movers

UP: AAPL, BIDU, FB, MSFT
DOWN: AMZN

S&P 500 Daily Momentum: Bullish (weakening)
S&P 500 Daily Overbought/oversold: Neutral
S&P 500 Weekly Momentum: Bearish (weakening)
S&P 500 Weekly Overbought/oversold: Neutral
S&P 500 Futures (June): Positive
Overall: Don’t be surprised if we see a repeat of yesterday: Pop at the open, drop later.

The S&P 500 levels to watch today:

UPSIDE: 1871-1873 (5 data points), 1877 (2 data points), 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 1902 (top of the Bollinger Bands).
LAST CLOSE: 1869 (April 17th’s high).
DOWNSIDE: 1867 (February’s high), 1862-1864 (4 data points and the 20 day moving average), 1859 (April 25th’s low and the 50 day moving average), 1856 (April 17th’s low), 1854 (April 8th’s high), 1852 (April 9th’s low), 1849-1850 (April 28th’s low, 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, March’s low, and the 100 day moving average), 1830 (April 10th’s low), 1823 (bottom of the Bollinger Bands), 1814-1816 (3 data points), 1804 (150 day moving average), 1775 (October’s high), and 1773 (200 day moving average).

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21 responses to “Traders Corner

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  1. I have a lot of companies reporting earnings this week. This morning KLIC reported what I felt were very good numbers. On revenues of 114million they earned 12 cents a share, a penny beat. But the better news is the guidance. They now say the next quarter will have revenues between 165m and 175m (a large sequential increase), while consensus was $154m. The stock should go up nicely today. This evening, two of my largest holding report, GNW and RPXC. (KLIC is my fourth largest holding).

  2. Well this market is favorable for losing money.

  3. When selling options is the money gained taxed as ordinary income or a short term capital gain or something else?

    • Is there any difference between ordinary income and short term?
      Not that I know of.
      I believe that premiums options are always considered ordinary income, because you have no way to “hold for a year”, and they certainly aren’t qualified dividends.

      • Thanks ChrisO and I hadn’t completed my first cup of coffee when I wrote ordinary income and short term.

  4. Here we go again. S&P is approaching its recent high. Technicals are not showing much to the upside.. If we breakout this time I would expect that to change. I’m not going to buy anything at the moment. A rather confusing market at the moment.

  5. Added SPXU at $55.00. My usual boring daytrade. 🙂

    • I’m curious Ed, do you know the percentage of times this trade works out for you?

      • The percentage doesn’t mean anything. It’s the amount of money made or lost that counts. You can be right 9 out of 10 times and still lose money if that one trade is a real loser.

      • True Trader, I should have instead asked if overall if Ed has been profitable on his trades. 🙂

      • Overall, since the beginning of March, this specific trade has been profitable 11 times, a loss 5 times, and 2 times for zip. Overall, it has been good for a 0.12% profit.

        For April, I am 7-3-1 so far, with a profit of 0.20%.

      • Thanks Ed.

      • I sold SPXU at $55.11, ironically for a 0.20% profit.

        The key to this trade is Buffett’s first rule: Don’t lose money.

      • Ed, for daytrades you might want to consider TNA/TZA. More volatility which is a day traders friend. Doesn’t seem like your gains are worth the risk. I’m seeing enough volatility that I’m going to look a daytrading these again.

      • Trader,
        The point of this trade isn’t necessarily to make a lot of money, but rather to avoid losing money. One nice thing about the S&P 500 is that it’s like a barge: It turns slowly, giving me plenty of time to get out of it if the momentum shifts against me.

        Even though daytrading is considered risky, this is actually a very low risk play. By selling before the end of the day, I eliminate potential losses over night. Also, I am only involved in the market for a fraction of a day, which also limits my potential losses.

      • Each to his own. Unless you can make 2% or more on a daytrade it doesn’t seem like it is worth while. Even with good size positions, the absolute dollars have to be worth the risk.

  6. Closed my position in KLIC. Bought 4-24 @ 13.40. Sold @ 13.93. Plus .53 4.0%. Thanks Marshall

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