My core holdings used to be FAS. I got scared out of the trade after months of being long last month as the FAS hit lows it hasn’t hit in awhile. Also lost alot of money so I had to bail. I will be dabbling here and there by selling naked puts but the covered straddle is no longer my play.
I know its been awhile since my last postings, but I’ve been really busy around the house, with my family and things. My attention was definitly needed on the home front. I could of blogged but every time I sat down at the computer, I was just to tired to write. So forgive me.
Well anyway, AAPL and GOOG are my new core holdings as these stocks are going higher. I would also like to play AMZN but after that 25 point move, I am to scared to get in. I’m sure other people feel the same so therefore, the stock will probably never pullback and just head higher.
I am also long Celanese Corp (CE). This stock just broke out and doesn’t hit any real resistance til $35. Currently trading at $29.72. Low volatility, charts point to upper right from lower left. I’m in.
I am long call spreads on EEM, EWA, EWZ. I also own straight up calls in Ford (F).
I brought these stocks as they were headed down as I remained firm on the buy on the dips strategy. I wanted to post about the market breaking trendlines to the downside. I felt that it was a true fake out. This is what the market has been doing all year. Breaking technicals to the downside and then violently ripping to the upside. I was stocking up on the sale and a day like today is paying off big. I was long straight calls on all positions but now have covered them all by selling upside calls into the strength locking in some profits.
I do still think we will stall at the SPX 1121 as this is the 50 percent retracement level from market high to low. I only feel the market will hang out there for a little as it will continue to steamroll to the 61.8 retracement level which is 1228.
Do you know the 50% retracement level is not really a Fibonacci ratio, but it is used because of the overwhelming tendency for an asset to continue in a certain direction once it completes a 50% retracement.
Happy Trading
