Well, that went pretty well didn’t it? Everybody broke right back over support so I think we have a good couple of days ahead of us.
As I said this morning, positive Dow movement is both great and confusing and I am really leaning towards window dressing by funds (pumping up their holdings at the end of the quarter) as the main reason because the fundamentals are just not there.
I’m all Googled out from the comments so check the last 2 blog’s comments if you want to hear all about that one.
It was hard to miss today – Oil was up, commodities are up, industrials are up, financials are up, hell even Apple was up… In fact, if your stock was down today, you really need to think about what that means!
Once again BTU is flat while oil and gas climb so signs of an artificial oil rally are there again. At this point I hope they all double so we can short the hell out of them again!
Tomorrow could be great or terrible and again it will be up to Google as a pullback tomorrow will shake a lot of people’s faith in the markets (now that it will affect the Nas and the S&P) but the charts look good as long as nothing happens to trash it overnight.
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My little military stock MRKL may be on the march again. It’s gone all the way up to .0215 bouncing nicely off resistance at .020 after a brief flirtation with .03 last week. They keep dilluting me so now I only own .3% of the company (I used to own 1%) but it’s fun to watch and I’m dying to see what happens if they actually post a profit this year! There is a very complex distribution dividend coming from a subsidiary (TCNH) which may amount to nothing and I in no way recommend a company where the CEO pays himself $4M while we are bleeding cash but it’s a fun stock to own and I thought I’d mention it today.
BIDU was the call of the day today with a nice easy entry followed by a 6.5% run on the stock! The Sept $50s finished at $10.10 (up 35%) but if you sold the $55s, they ended up at $2.70 (up 100%) but you are still $1.20 ahead (17%) and should consider buying them out, at least in part as this thing looks very strong. I am also going to turn around and say that those $55s are pretty attractive at $2.70, especially if they come in a bit tomorrow (but only if Google is strong!).
No wait, AMTD was the call of the day! The $20s opened at just .80 (I was way too pessimistic) and finished at $1.40 (up 75%). This is a good time to make a point that sometimes, when a stock gaps up, you can still get options that were left for sale at the night before’s price if you get your order in early! Also, these options were $1.60 all afternoon and shame on you if you don’t stop out when it pulls back from a double!
EBAY stayed in range pending the decision by the court.
YHOO wasn’t very exciting today, it also took a big drop in the afternoon.
BVN was the call of the day (up 8%)! The May $25s finished at $1.80 (up 80%).
CAT opened too low to trade and held up ok in the end so I’m off this one.
GM didn’t totally collapse but the $20 puts ran up to .65 (up 60%). I don’t think this one is done at all!
RIMM went the wrong way on us, the $80 puts finished at $1.85 (down 15%). You would think it would lose more value on a $2 move so I still have faith but the smart move is to exit if it goes any higher.
Should be fun tomorrow!
Have a good night,
– Phil
