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It’s a Wheel Of Fortune Day at All About Trends! As in:
Big Money Big Money!
This morning we used the opening gaps on SWKS and CAT to lock our gains in the face of greed around here.
We locked in gains of 65% in our CAT options, 8% in Cat common stock and a 24% pop in SWKS this morning. Not too shabby if you ask us. Could we have done better? Sure we could have bought more of the good ones and less of the bad ones. But that will always be the case. You will ALWAYS own too much of the bad and never enough of the good.
For us we can’t complain and from the looks of all the emails we’ve received from the do it yourselfers and those who trade in tandem with us. WOW! Many thanks to those who have emailed us. One such do it yourselfer is Ross who emailed us the following:
"Hi David – sweet trades on these two stocks. I bought the CAT May 95 CALLs for $12.2 on April 14th and sold today at the open for $21.20 for a 74% gain in two weeks! I bought SWKS May 22 CALLs for $4.30 on April 18th and sold today at the open for $9.90 for a 130% gain. Now that’s what I call rounding the bases – homeruns."
This comes on top of our cyber golf subscriber who emailed us yesterday about MOBI, specifically:
"Just got out of MOBI at $23…Thanks for the heads up on this rocket ship at $12.39! Had 1k shares in a ROTH account so thought taking a profit was justified."
Can you believe you get all of this for just $29.99 a month? These people obviously are more interested in achieving their goals than they are about spending $29.99 a month. New subscribers MAY want to take note. These subscribers know the meaning of:
"You Can’t Get Big By Thinking Small"
So to all of you that trade in tandem with us or are of the do it yourself caliber instead of you thanking us it’s really the other way around!
WE THANK YOU ALL for ALL being the best that YOU can be!
It’s the weekend and the end of the month we’ll have more to say this weekend. In the meantime keep an eye on that 20 day average on MOBI, watch PANL and AAPL — and yes we have a few more names setting up this weekend in POH land that we’ll touch upon then.
Have a great weekend and we’ll see you Sunday!
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LONG SIDE WATCH LIST
If I were to put money to work here. Where do I put it?
NOTE: It’s earnings season, make sure you know when that is to occur with whatever issue you are stalking.
AAPL
4-28 Let’s keep an eye on that 50 day average, shall we?
4-29 Still in the channel
CVLT
4-28 Triggered the other day but just doesn’t have that UMPF so far.
SGI
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SHORT SELL WATCH LIST
NONE
FEATURED BUT NOT TRADE TRIGGERED BY US
This is where names that we have on our watch list that have triggered but for whatever reason we did not take them (can’t do them all) in our trade trigger alerts. This section is because a lot of our subscribers opt to use our information as they see fit from a do-it-yourselfer standpoint.
Long side
4-29 AWESOME!
PANL
Backtesting. One could say this name and most others are all doing the same thing here, all in line with our index action comments at the beginning of this newsletter. This goes for a lot of our current holdings too.
SLV
GLD
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All About Options In The World According To All About Trends
NOTE: The exchanges recently started WEEKLY EXPIRATIONS of options. Going forward, make sure that you check to see which ones you are buying. Let’s stay with traditional options expirations which are the ones that expire the 3rd Saturday of every month.
Options Watch List
ALL MAY Expiration Folks
ISRG
NEW NAME
The strike price we want to look at are the MAY 340 calls. With the stock at 354+ these are priced at 18.40-19.60 which gives you a little room to place a limit order in between the bid ask. At the ask you are paying about 4.00 for time till the 3rd week of May.
Sure beats coughing up 35,400.00 to own 100 shares.
This name comes to us compliments of our guy dewayne in the fast lane. Thanks! You can’t tell me it doesn’t have a POH being built out now can you. And I think they already reported so that’s a plus. Fast mover and not for the faint at heart when it gets going, that means both directions so be aware.
Current Holdings
DANG (We are now long 3 May 21 call options to open at 3.10)
As we post they are currently at 2.95
MOTR (We are now long 3 MAY 10 Call Options to open at 3.50)
As we post they are currently at 3.80
DE (We are now long 1 MAY 85 Call Option to open at 9.40)
As we post they are currently at 11.30
PAY (We are now long 2 MAY 46 Call Options to open at 7.40)
(We are now long 1 MAY 46 Call Options to open at 8.10 from 4-19-11)
As we post they are currently at 8.70
CAT
This morning we locked our gains in the face of greed with this one. We bought at 12.80 and sold at 21.20 for a gain of 65%
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"Let Your Stocks Tell You What To Do By The Action They Exhibit"
LONG SIDE POSITIONS
DANG (We are LONG 300 shares at 23.51 as of 4-28-11)
BSFT (We are LONG 300 shares at 42.89 as of 4-18-11)
4-28 Trying to follow through to the upside here, one step at a time, one day at a time, so far so good.
SPRD (We are LONG 300 shares at 21.17 as of 4-18-11)
4-27 right back to support
SWKS
We were long this issue in the face of fear at 25.59 and sold at the open in the face of greed at 31.82 for a gain of 24% and 1246.00 per our trade size. Like we’ve stated — you’ll never own enough of the good ones.
DE (We are LONG 150 shares at 93.54 as of 4-15-11)
CAT (We are LONG 150 shares at 107.35 as of 4-13-11)
We were long 150 shares of this at 107.35 and at the open we sold at 116.17 for a gain of 1323.00 dollars.
PAY (We are LONG 200 shares at 52.00 as of 4-12-11)
MOBI (We are Now LONG 150 shares at 12.39 as of 4-11-11)
4-29 Watch that 20 day average!
MOTR (We are LONG 300 shares at 13.15 as of 4-13-11)
SHORT SIDE POSITIONS
BIDU (We are now SHORT 100 shares at 127.81 as of 3-23-11)
4-28 Earnings came out and all but a whimper out of the stock. Now that we got that out of the way we’ll sit tight. Let’s see if this issue can sell off to the blue line. That is a support level and we will walk away and who knows maybe even consider going long there.
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To our NEW SUBSCRIBERS
What we’ve tried to do is break our watch list down into chart pattern recognition structure from a visual standpoint. Learn the patterns and the components of patterns and you’ll blow those Wall Street MBAs away. You don’t need a $3,000 software program either. All you need is a BURNING DESIRE to be the best that you can be and we’re here to help.
We have a lot of new folks here and we thank you! We want you to take it easy, get to know how the routine works around here for awhile and to feel comfortable.
We hope you all aren’t here because you are chasing performance. For us it’s more about educating and making you the best you that you can be first (that’s what we focus upon!). Like many of our long time subscribers they have all found out that they have no use for traditional Wall Street (and we don’t blame them) and it’s our hope that over time you’ll have acquired enough knowledge from us to say the same with conviction.
One of the most important things we want to stress is that of RISK MANAGEMENT via POSITION SIZING. You don’t need to stack your account with just a few big positions as we’ve seen it time and time again that those who get into trouble are the ones who take large positions and do not employ any risk management system IE shoot for the fences. Those are the people who live on the fringes of extremes and yes ultimately get burned.
As a guideline a good initial system is that of the following example.
Let’s say you have a $100,000 virtual portfolio and let’s say that as a guide you never place more than 10% ($10,000) into any one position. Now let’s say that one day a news driven event hits (over which you have no control over anyway) and one of the positions tanks 20%. On its own that position is sporting a $2,000 loss, while that may seem devastating on its own its really no big deal overall.
Why? Simple its all about risk management being properly employed. What is the impact of a $2,000 loss to the TOTAL VALUE of the virtual portfolio in this example.
Answer: A whopping 2% LOSS. Now you know why we say no big deal.
We can also tell you new people here that you will get stopped out of names and you will take hits. There is nobody on the planet living that has ever hit 18 holes in one and there never will be. We’d rather get you grounded in reality right away vs talking about pie in the sky all the time like a lot of other sites. In so doing your head is screwed on straight from the start and when those days happen (and they will) mentally it won’t mean a thing to you. To us that’s what’s most important is YOUR state of mind as it’s your most important asset. We hope you appreciate our honesty.
We have a very good retention rate here at All About Trends and a lot of great outstanding people here. We like to think that a part of that is being upfront about what can happen (in both directions). Verses those up 500%, I turned $50,000 into $3 million or some other absurd number to get you to bite. That’s not who we are.
WELCOME ABOARD!
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Lastly with regards to taking any trade:
Remember the moment you take a trade you are at the mercy of the market and have no control except when to sell. If you are not willing to take the risk and are not willing to pay that price do not take the trade. We are willing to take that risk knowing full well the end result could be a loss. That said make sure that virtual portfolio management trade size is used accordingly. With any position you may take make sure that should something go awry the amount of total impact to your account does not devastate your acct. Try to stick to a 5% position That’s the key to virtual portfolio management, not biting off more than you can chew.
Remember the mechanics of reality with regards to the stock market states a stock can only do one of three things: Up, Down, Nowhere. The moment you hit the enter button you are at the mercy of the market therefore the only control you have is when to sell/cover. You can’t manage your gains as you have none to manage initially. Knowing this in advance it allows you to stay in outcome, that being you will either:
1. Make a gain
2. Wash
3. Get stopped out at a loss
Remember the market IS the boss. IT is going to do what IT wants to do.
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SUBSCRIBER ONLY WEB SITE
Don’t forget you can view updates in the middle and the end of each trading day complete with current charts, along with our current performance at our subscriber only web site.
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