Hi folks, sorry for not having a chance to post on the blog here for a while, for I have been very busy with some school work. Not only have I been busy with school work my mind has been getting a little sidetracked so now we seem to have found a trend that we are heading their are plenty of trading opportunities I have found. The market has been trading in a sideways market and many can see it was trading inside a symetrical triangle, which broke are hearts now that we have all seen it break to the downside. This is what you would expect in a bear market, even though some people seemed suprise because we had this feeling that it must break up. Well the market does not care what you think it feel and we must play it to the tee. With that being said, my bias is to the short side in this market with a couple of small up suprises possibly on the way. However, the Bullish percentage on the S&P 500 broke the support line on the point and figure charts. Also the nasdaq, which has been holding the market up is far from the bullish support line and I think it can be following the S&P 500 the same way. So in all we have alot of more downside in the tech field and maybe some stabalization in some of the S&P 500 stocks. Now to gold and oil, I am still bullish on gold and would have made some good money on the GG calls that I posted here some time ago, but I got greedy and did not sell. That goes to prove to you all that you must take profit anytime that you see it. Even if you have to close your position before end of day please take profit. I am not a pro, but I say im getting close and this was something that I should have not done. So I am still bullish on gold, for today ( 02/23 ) we saw it sell off early in the day and close 75% close to its highs ( BULLISH ). As for oil, oil has been stabalizing, but seems to have lost his cup of tea. Today we saw oil try to push higher, but shrug off at the downward trendline and also looks to be breaking down on a descending triangle, so I am bearish on oil ( Tune in below for an awesome oil play short). The $USD is getting has been showing bullish signs, but seems to be weakening. ( Getting real late and my eyes are killing me ). Okay people now the the plays I have setup. The last play is a key play that I believe will turn out to an awesome trade especially if you use options alot like myself.
Good Plays
- MDRX- Long stock or March calls 10x ( .70 )
- TZA- Long stock or March calls 90x ( 9.45) or 115x ( 5.00 )
- JOSB- Short stock or March puts 22.50x ( 1.25 )
- HANS- Short stock or March puts 30x ( 1.65 )
- SCO- Long stock or March calls 60x ( 5.10 )
- QID- Long stock or March calls At The Money (ATM ) strike should be fine
- SDS-Long stock or March calls At The Money (ATM ) strike should be fine
Great Plays
- SWHC- Long stock or March calls 2.50x ( .75 )
- DUG- Long stock or March calls 30x ( 3.80 )
As always becareful on your entries and time the market right so you get the best entry. The trend is down with minor bumps up on the way so be careful. We are expecting a rally soon, like everyone else, however I think it will be after the next leg down. So good trading and good luck !!!
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