Ed’s Daily Notes and Traders Corner for July 25th   21 comments

I am being lazy today and combining my morning posts into one.

The S&P 500 levels to watch today:

UPSIDE: 1989 (July 23rd’s high), and 1991 (July 24th’s high and the all-time high and the top of the Bollinger Bands).
DOWNSIDE: 1972-1986 (20 data points and the 20 day moving average), 1968-1969 (2 data points and June’s high), 1965 (3 data points), 1962 (July 1st’s low), 1959-1960 (3 data points), 1955 (July 17th’s low), 1954 (bottom of the Bollinger Bands), 1952 (July 10th’s low), and 1944 (50 day moving average).

S&P 500 Daily Momentum: Bearish
S&P 500 Daily Overbought/oversold: Neutral (leaning overbought)
S&P 500 Weekly Momentum: Bullish (weakening)
S&P 500 Weekly Overbought/oversold: Overbought
S&P 500 Futures: Negative
Overall: That was a short bull move! The top of the S&P 500’s Bollinger Bands are providing firm resistance, as the 1972-1986 range seems to be providing firm support. We may see another run at the top of the BB’s today, but I wouldn’t be surprised to see the S&P 500 close down in the 1972-1986 range today.

And now for the news…

Wall Street Journal: Google’s New Moonshot Project: the Human Body

Google Inc. has embarked on what may be its most ambitious and difficult science project ever: a quest inside the human body.

Called Baseline Study, the project will collect anonymous genetic and molecular information from 175 people—and later thousands more—to create what the company hopes will be the fullest picture of what a healthy human being should be.

The early-stage project is run by Andrew Conrad, a 50-year-old molecular biologist who pioneered cheap, high-volume tests for HIV in blood-plasma donations.

Dr. Conrad joined Google X—the company’s research arm—in March 2013, and he has built a team of about 70-to-100 experts from fields including physiology, biochemistry, optics, imaging and molecular biology.

Other mass medical and genomics studies exist. But Baseline will amass a much larger and broader set of new data. The hope is that this will help researchers detect killers such as heart disease and cancer far earlier, pushing medicine more toward prevention rather than the treatment of illness.

“With any complex system, the notion has always been there to proactively address problems,” Dr. Conrad said. “That’s not revolutionary. We are just asking the question: If we really wanted to be proactive, what would we need to know? You need to know what the fixed, well-running thing should look like.”

The project won’t be restricted to specific diseases, and it will collect hundreds of different samples using a wide variety of new diagnostic tools. Then Google will use its massive computing power to find patterns, or “biomarkers,” buried in the information. The hope is that these biomarkers can be used by medical researchers to detect any disease a lot earlier.

From an objective standpoint, this is fascinating. As a Google investor, I love how they are looking in different areas well beyond their expertise. They may get nothing from it, or they might create something beneficial to mankind (which could come with lots of dollar signs attached). Either way, I am pleased with my investment.

Market Watch: Greenspan says bubbles can’t be stopped without ‘crunch’

The article above is a must-read interview with former Federal Reserve Chairman Alan Greenspan. Whether you agree or disagree with him, his views are intriguing.


21 responses to “Ed’s Daily Notes and Traders Corner for July 25th

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  1. Marshall, KLIC is down 3.5% today. Is this a buying op?

    • Jeff – I value KLIC at $17 to $18. They still need to signal what they will do with all their cash to unlock that value. Meanwhile, they are in a cyclical upturn, so I do believe under $14 is a good entry. They have also popped pretty nicely post their past several earnings announcements (they announce 7/29). They were up a buck last 2 quarters.

  2. Put a bid in on tcmcf at 14. 12% dividend

  3. Sold GTAT Aug 17 calls for .40. Average cost is 17.29. This sale reduces my basis to 12.98. Still have a third that is not covered.

  4. Gluu nice comeback today, weakness last couple days cod be because KING got a downgrade from analysts

    • Doing well today. I’m going to take a chance and hold through quarterly results on the 30th. My guess is guidance will be more important than last quarters results.

      • Yes the Kim k game came out a few days before end of quarter. Everything will be on guidance for rest of year and if they have another Kim game, holiday game?

  5. Marshall

    Thoughts on Met if govt classifies them to big to fail?

  6. Sold TZA Aug $16 calls on part of my position for .75.

    So with the Kim K game, is the goal to release the highest rated “secret” sex tape? Can I just say that I’m glad that the sex tape to socialite trend didn’t really catch on beyond her and Paris.

    • No idea. I would never buy the game. I just liked the chart. At my age, that is what I find sexy.

      • I agree…it is making my buy at $4 look good….I don’t care if they come out with a Justin Bieber or Lindsey Lohan game as long as it is a money maker.

      • Trader, I’m sorry. I’ll have a glass of whiskey in your memory this afternoon while watching the spandex clad joggers passing my house. No chart will ever look like that. 🙂

      • Guess I better look again. Maybe time for an eye exam. 🙂

  7. I don’t see much strength behind this drop today. A lot of the stocks I follow are holding up ok. I would be more concerned if Monday is another big down day.

  8. Bought UVXY @ 26.56. Sold next Friday 24 calls for 2.80 reducing my basis to 23.76. I won’t make much if called. I’m thinking we will bounce the first part of the week and I’ll have a chance to buy back the options at a much lower price. In that case, I’ll trade the options around this position. I have two covered positions with options that expire today. Looks like I’ll be called out on the 25’s. I’ll make 1.27 5.5% for two weeks. There is still a chance I’ll be called on the 27’s.

  9. Syna is going down the slide pretty fast lately. Marshall, do you think this is a good price to get back in?

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