Another sad day on the markets.
Like I said this morning, between options and the “wall of worry” it’s very hard for any traction to be gained.
The homebuilders were mixed, sentiment is very bad in this market and even good guidance is quickly forgotten and traded away.
I underestimated AMGN, they made it through resistance all the way up to the 5% barrier. I hate to call a stock that has recently doubled a buy but it is.
BSC was a great performer today with the entry all the way down at $112 and giving us a quick 4% on the day. I will sell this at $115 but hold it with a $1 trailing stop.
MO was great as the puts lost only .15 at the decision so we are in on the Jun $85 calls for $1.85 (counting the loss on the put). I think only option expiration is holding this down, next month will be interesting.
BCRX is way stronger than I thought, our 12% seems very safe!
SNDK exceeded my expectations and went up 10% today, too bad I didn’t like the option prices and I stayed out of it. There was no shortage of entry points as it just kept going up all day.
Just going down all day, as usual was GM. I really can’t imagine who buys this stock…
Very glad we got out of the GD trade, the stock flew up 2% this morning and stayed there.
NEM held up like a champ on a bad gold day. GG and MRB also posted gains.
TOTD TGT didn’t hit my bid but I picked it up for $4.50 around 1pm. I’m glad I wasn’t staring at it because it had a rough day but ended up a nickel.
=====================================
ADBE had nice earnings but ORCL is a disappointment so no help for the Nasdaq tomorrow.
MCD is throwing an option day sale at $35. The Jan ’07 $40s are still a good buy at $2.60 and the Jan ’08 $35s are not bad for $6.40. I expect the real movement to come in the next quarter because cheap trumps healthy when budgets are squeezed as they are all over the US and Europe this year.
LVS is now down 8% since we shorted on 12/1 and about to hit the 200 dma so I am out of this one until it tests. This is more about putting money to work than it is about me thinking this company has a real chance of going up. On the whole, I am hoping for a nice dead company bounce so I can go back in.
HET is about to make a major move. I have decided to add this to my Leap collection with the Jan ’07 $60s for $12.90 (a $5.30 premium). I will wait until the end of this month and look to sell Jan $75s, hopefully at about $1.50 so I can work off that premium.
STN is another casino I like and I think it is very underrated. It’s the casino(s) that locals go to in Nevada and, as the city grows, so do they!
The Merck roller coaster continues, I made money on calls and puts last month and I am starting to have more faith in the channel it seems trapped in.
http://stockcharts.com/gallery/?mrk
I blew it on GENZ, it was a buy yesterday but I didn’t commit! No worries, this stock will head to $80 once it gets on a roll. As soon as it breaks up over $73.50 with volume I’m in.
Ebay really caught fire today, especially against a bad Nasdaq background.
If there is a transit strike tomorrow expect a very weird day on wall street….
