The Dow did exactly what we expected today, bouncing twice off the 10,825 mark but finishing right against it. As I said, the other indexes are ready to rock and roll and just need the confirmation from the Dow to head back to their highs.
Tomorrow might be the day – we will have to wait and see.
Oil stayed up all day which really confused the sector who opened as if it was going to plunge.
Gold hugged $560 and will have to make a decision soon.
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My personal intraday trade of the day is a great example of using the Valero rule to maximize profit. At 10:30 the gas inventories came out and Valero obviously liked it so I quickly checked the sector for the most beaten down company which was BTU. I picked up the calls and exited at about 1:30 when VLO turned down for a huge profit.
http://finance.yahoo.com/q/bc?t=1d&s=VLO&l=on&z=m&q=l&c=BTU
Although all of the potential trade of the days held their own today, you can see the negative effect that the 12pm rejection of 10,825 had on them. TIE took off so fast that I missed it so I bought ATI, who is pretty much in the same place but less well known.
AIR had a terrible day because they are raising capital with convertible notes. This is ridiculous as they need money because they are growing at warp speed. I will be looking to pick these up when they settle down. This is what happened to PLAY back in October and became a great opportunity to buy in.
MSFT came in a little light on revenues but in-line for earnings so it will all be up to the conference call to see where this will go but I think guidance will rule the day and the stock will go up.
OXPS gained an amazing 10% for the day! There is some merit to buying what you use.
AAPL is taking on water from all sides, now they say Google will have a tunes site and Microsoft will be coming out with an IPod-like device. This is what happens when you are number one but I couldn’t take it any more and I picked up a small batch of $80 calls for .80.
TXN is firmly on the mend. I think that MSFT just not having a disaster signals that all is well in tech-land.
SNDK is getting clobbered because profit is “only” up 72%. I’ve been saying this stock was overbought since the 4th when it hit $80. At $60 I will be liking this stock again, 72% profit increase is not all that bad you know… The action on SNDK put LEXR into free fall as well.
BRCM seems to have knocked it out of the park – I can’t wait for VZ to check in!
GOOG went as expected today and I flipped to long as the Europeans seem to keep buying it up overnight but I will have my finger on the trigger at 10am for tomorrow’s sell off. I bought out the $480 calls I sold for $10 (a 20% profit) and I sold $420 puts against my $410 puts so I am very levered to an up move now with my naked Mar $490 calls.
BA turned out to be a nice way to play Boeing’s strength today – sometimes the obvious calls are the best ones.
You gotta love BNI! That trade worked again today! This time I stayed in.
GM took a dive until 11:30 when someone stepped in. I decided to ride it out though as the puts were cheap and in the money.
BVN had a great day today with a 3% gain, well outpacing the sector. It made a really odd top at $28 so I took the money and ran. http://finance.yahoo.com/q/bc?s=BVN&t=1d
BSX is going down and down. This drama may not be completely over.
LVS still looks nice and shortable. SHFL and HET march upward.
MCD baffled me by going down even though the Chipolte IPO was a huge success. I already doubled up so I’m going to have to ride this one out – I do have until March so I’m not too worried.
Tuesday’s TOTD CDIS gave the stragglers yet another chance to exit with big money before the Valero rule cancelled the trade. I hope everyone got at least 150% on that one!
PD came close enough to my $156 target for me to half out. It still looks strong but greed is not actually good. Today was catch up day for PCU, as expected. Now they should trade in tandem again.
YHOO marches on with another 2% today.
My little CHCI went up 3.4% today, best of the builders – I am so proud!
We nailed the bottom on DD, it tacked on another 1.5% today.
EK shot up another 4% today. At this point I am putting in a stop at $26 otherwise this is just greedy.
TASR gained another 9% today! We will see what happens at $10 now but I think it will break through. Today was a big volume move.
YRCW jumped 3.5% blasting through the 50 dma on good volume.
All in all, a great week in the markets so far. Let’s hope tomorrow has a nice, positive open that takes us right over our Dow target!
