Traders Corner   14 comments

The S&P 500 levels to watch today:

UPSIDE: 1940-1944 (5 data points), 1947 (June 9th’s low), 1949-1950 (3 data points), 1955 (June 9th’s high and the all-time high), and 1966 (top of the Bollinger Bands).
LAST CLOSE: 1930.
DOWNSIDE: 1928 (June 4th’s high), 1924-1925 (3 data points and May’s high), 1922 (June 5th’s low), 1918 (2 data points), 1915 (June 2nd’s low), 1914 (20 day moving average), 1897 (April’s high), 1887 (50 day moving average), 1883 (March’s high), 1867 (February’s high), 1862 (bottom of the Bollinger Bands), and 1861 (100 day moving average).

S&P 500 Daily Momentum: Bullish (turning bearish)
S&P 500 Daily Overbought/oversold: Neutral
S&P 500 Weekly Momentum: Bullish
S&P 500 Weekly Overbought/oversold: Neutral (leaning overbought)
S&P 500 Futures (June): Negative
Overall: The technicals are sending mixed signals today. The most immediate question the markets have today is what will the U.S. do about Iraq? If the U.S. continues taking a hands-off view towards Iraq, markets will probably continue downwards. Mind you, I would prefer the U.S. to take a hands-off approach to Iraq, but I doubt they will. Eventually, I suspect Obama will cave to Wall Street and probably send some attack drones in (the U.S. is already using drones for surveillance in Iraq, according to the Wall Street Journal). Of course, that kind of action could be “too little, too late” for Iraq’s government.

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14 responses to “Traders Corner

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  1. S&P technicals are continuing to move lower. This doesn’t mean we will continue down. So far, the 1920-1930 level is holding. It is certainly possible that we start to level out here. If the market does level off I don’t think it will stay there for long. If the technicals do not start to show strength, my guess is we move lower with 1900 on the horizon.

  2. Marshall,

    INTC is up pretty big today on higher PC revenue guidance. Looks like we were both really early on our sells this year. Didn’t expect to regret that sell at all when they sold their TV set top unit to Verizon. I guess it reinforces the old adage of good companies find a way to come through, and long term they make you $$$.

    • mdistas, I have followed and hoped for intc to rise above for a very long time and it never has. This is the first solid move I can recall. I wouldn’t regret being early on this sale at all because it could just as easily be sitting at $20 right now. In fact, barring some new revenue stream, I’ll bet that intc will be back at $22-23 by fall.

    • Md – that grinding sound you hear is the gnashing of my teeth selling INTC at a bit more than $24 in March. I knew they had potential catalysts, but was flat out impatient, even though I held them for two/three years.

      • Yah you never know W_seattle, name of the game. Only time will tell. Marshall I guess you and I better both see the dentist soon!

        Either way update on GTAT: Sold a June18C yesterday for .60 and bought to close a July 16C for 2.05 which I sold originally for .75. Moved all my strikes up to 17 for June & july, and some June 18’s. Looks like OIH will be called out again also.

  3. Closed sco calls for +.50; tza calls for +.48; sold BTU Dec 17’s for $1.45.

    • + is always good

      • In general, I agree. The Iraq situation has me a bit nervous holding SCO. If the Kurds hold the north, they’ll be selling oil in no time. ISIS will probably be selling oil to China for arms, but will technically not be selling on the open market. I’m hoping they get routed as the approach Baghdad which should cause oil to drop a bit. I don’t see the west letting the oil fields in the south fall.

      • w-seattle It’s 50/50 right now the way I see it. A move back over 107 could motivate me to sell and cut my loses. A move over 108 could be a signal we are moving to 110. I hope we make a move toward 105 and I’ll still sell. 105 is the support

  4. I did buy a small position in it at 15.70 today on rumors they are possible merger candidate. I like the company anyway, they are quite cheap by most metrics even with today’s spike.

  5. Whew – glad I took my profits on idcc earlier this week. They are down about 10% suddenly today on an unfavorable patent ruling.

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