Well that wasn’t so bad…
At least the Dow and the S&P stopped falling but good luck finding an actual stock that did well! That is not a broad-based rally but at least we are finally getting a few market leaders who aren’t commodity plays or brokers.
Other than XOM, which had a mystery recovery at the day’s end, oil was off big and metals were off bigger with our short selection, GG, dropping almost 10%.
Oil blew through resistance and dropped to $69.41 (.09 under my morning target) and is ready to challenge my dollar adjusted mark at $68.50 where it should find good support.
Gold dropped another $25 to $685 but the stocks are trading like its $485 so something has to give.
TGT had disappointing sales, dropping 4% and WMT is up to bat tomorrow which will either save or damn the retailers. I must point out the SHLD is holding up nicely during this entire market sell-off but I’m not sure it can withstand bad Wall-Mart news.
I could not be in a better mood as CNBC just announced that Berkshire Hathaway just took a big position in GE! I love it when Warren Buffett backs my plays!
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I’m not even going to look at Friday’s picks as they all made an obscene amount of money but, if you were like me, you didn’t hold them over the weekend so they are very expensive water under the bridge (but I slept much better having cash!).
The Valero Rule made us a lot of money today as VLO ran up in the morning but turned sharply down with XOM at 10:35. The move was confirmed by a downturn in OIH and the OGX and was followed by a downturn in crude that lasted all day.
http://finance.yahoo.com/q/bc?s=VLO&t=1d
This is a good chance to review the picks as patience and discipline really made us money today!
SU, BP, MDR, OII and PDE did not give us good entry points.
XOM was a big disappointment, the .15 entry was never rewarded as the $60 put never got above .20, even as the stock dropped a full dollar and they finished the day at .10 (down 33%). It would have been much more profitable to play the $62.50 puts (which went from .70 to $1.35 and finished in the money at .85) and next time I won’t be so cheap!
CVX did have a nice run up in the morning and dropped the $60 puts to .60 before turning and running them back up to .80 (up 33%) on several dips.
KMG gave us a nice entry point on the plus side and the $105 puts ran down to .30 and were as high as .90 (up 200%) before finishing the day at .70 (up 130%).
My PBRs $95 puts gave me a nice triple at $1.90 before stopping me out. They finished the day at $1.10.
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PD opened high at $2 but hit our target and put the $95 puts into the money with a double before moving back up to close at $2.80 (up 40%).
http://finance.yahoo.com/q/bc?s=PD&t=1d
RTP opened way to low to play as did BHP, ABX and AA.
GG $35 puts only came down as far as .80 but rocketed back to close at $1.80 (up 125%).
T went completely the wrong way but the Jun $25 puts finished down just a nickle at .20.
TWX made a nice recovery after a bad open as expected:
http://finance.yahoo.com/q?s=twx
FDX went the wrong way so maybe we are going to recover. The $115 puts finished at .85 (down 20%).
HPQ has earnings tomorrow but you would think they already announced a miss:
http://finance.yahoo.com/q?s=hpq
MRK shot straight up at the open on good news regarding their upcoming cervical cancer vaccine so it was a no trade (should not have been entered) but the $35 puts finished where they started at .55
http://finance.yahoo.com/q?s=MRK
UNH had a good day and the Sept $50s are off to a good start at $2.20 (up 10%).
AIRM picked up 6% on our first day which is tricky as the stock gained $1.36 but the Oct $25s we sold only picked up .60 so we have a 3% one day gain if we kill the trade right now (vs. an expected 22% to hold it through October)…
