Long SPY $111/$113 Jan 2010 call spread @ $0.90 100% hedge play nothing else.
Long RINO $30/$35 Jan 2010 Call spread @ $1.00 Strong company. Should give nice return.
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***Trade Alert***
FAS short via 70/68 jan 2010 put spread @ $0.95
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Here's the RIMM chart and my reason to take Short on RIMM.
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***Trade Alert***
Closed AMZN 135/140 Call spread @ $2.10
Closed USO 36/38 call spread @ $0.75
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***Trade Alert***
Shorted RIMM 60/55 Jan 2010 Vertical PUT Spread @ $1.38
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Good morning,
Yesterday was really interesting day. We went long AAPL in the morning and AMZN & USO at the close. Now we are standing in the middle of the road thinking which is the right way? Well here's what I have in mind. First of all I balanced my portfolio with longs and shorts, the weight is 50% long and 50% short. On ES we have an unfilled gap at 1104 (chart below) which means we can target ES to run up from open to fill the gap at 1104-1105 area. Once the gap is filled we can either have a trend day or pull back and go sideways.
In any case, we need to keep the following numbers in mind. On either fib set up if 61.8% retracement is broken it will give us a clear picture of the next move. Which in past months is to the upside. If you look at the chart before OPEX we have a nice drop and during OPEX we put new highs. Keeping same thing in mind I see higher probability of moving north and print new highs around 1134-1132 area. May be even 1140+ it all depends.
One of our regular reader just pointed me to SCO and it sure does look an interesting setup. SCO broke out of the descending wedge with high volume. I did long-term and short-term trendlines and it looks bullish to me. On pull back a long position on SCO can give you a nice hand to hedge your long equities. As we speak the inverse relation between Dollar and equities is narrowing. Dollar and equities both could rally while Gold and crude could drop. Keeping all possibilities in mind design your portfolio where you can take an advantage of up or down side.
One more possibility is that we could see Equities and Dollar marching upside while Gold and Crude could fall. Why? As I mentioned before we need strong dollar for investors to invest in US bonds. No one would invest into US bonds if the dollar is weak. So they will pump the dollar no matter what. While they are pumping the dollar they could keep equities higher which means take profit from Gold and crude and invest in equities. Once again this is my early morning mental masterbasion so don't go crazy. Just writing what pops in my mind.
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