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Archive for 2006

Wild Weekly Wrap-Up

Wow, what an exciting week that was! We had 47 winners averaging gains of 112% thanks to some huge oil plays, 14 losers averaging 27% and 11 neutrals – not counting commissions or straight stock calls (which were all winners I think). You can tell by the volume of comments how crazy the trading was this week as we were up and down all over the place (and that was just yesterday). I got the finish I predicted (see last 2 day’s comments) but the volume was still a little light and I would have been happier if we would have broken some upside technicals on the day. The Dow closed a double tap under 11,400 but finished strong on good volume: http://finance.yahoo.com/q/bc?s=%5EDJI&t=5d The S&P also double tapped 1,300 without cracking it: http://finance.yahoo.com/q/bc?s=%5EGSPC&t=5d The NYSE double tapped 8,300 but couldn’t beat it: http://finance.yahoo.com/q/bc?t=5d&l=on&z=m&q=l&p=&a=&c=&s=%5Enya I’ll say the Nasdaq broke through 2,150 just to be positive but honestly – so what? http://finance.yahoo.com/q/bc?t=5d&l=on&z=m&q=l&p=&a=&c=&s=%5Eixic The SOX couldn’t crack 440 and the Transports actually snuck down (and they thought I wouldn’t notice!) a third of a point to 2,332 – another meaningless spot but still right on that very interesting triangle pattern on the weekly chart (request for Tom to explain this to us): http://stockcharts.com/h-sc/ui – make sure to use weekly view. Oil made it all the way down to $66.25 on a pretty flat dollar and now has one dreadful looking chart: http://futures.tradingcharts.com/prairielinks/CO/A6 The last time I saw a pattern like this oil chart I was watching a guy in Acapulco dive off a cliff! Gold did not fare much better, closing at $611, and I like my new chart guys as I think all the explanations are good for beginners: http://futures.tradingcharts.com/chart/YG/A6 I can’t complain as we really pulled this week out of a hat after being caught flat-footed by the drop off on Wednesday. We could have done much, much better if we had continued to treat the market as a hostile entity – a stance that has served us well the past couple of months… ===================================== ABX Oct $32.50 puts finished the week at $2 and I got out with a neat double. The Wednesday repick of the Oct $32.50s was very timely at .80. We’re back in ADZA at $16.66 (up .21). AIR had a rough week but sentiment changed and the Feb $25s hit $1.40 (up 10%). AMGN went nowhere…
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Fooled You Friday

Did you get all bearish yet? Have you dumped all your stocks? If so, then the traders have done their jobs. You see, while they were off on vacation some of you had the nerve to buy their stocks after they “sold in May and went away.” They left the S&P at 1,260 on May 15th and that’s where they like it so, just like my Grandpa when he comes home and finds the heat on, the big boys are turning the market back down. http://stockcharts.com/gallery/?spx I like to ascribe evil macro motives to these things because it’s more fun but there is also a simple economic explanation for this action as well. Mr. Big manages a fund who’s goal is to beat the S&P. The fund, in May forecasts a downtrend and sells off some shares into the Summer doldrums (8 out of 10 Summers, yadda yadda) pocketing the 6% YTD gain. This is sort of a self fulfilling prophesy as the selling drops the S&P, so Mr. Big automatically outperforms it (nice gig). So he goes on vacation thinking when he gets back he will start buyig again but, when he gets home, he finds some jerk bought up his market – back to where he started selling it! This is not good, he is now performing flat to the S&P but, since he still has hundreds of Billions of dollas in stocks, he does something very easy – sell some again and take the 5% gains off the table. Again we have the self fulfilling prophesy and Mr. Big is again outperforming the S&P and his table at the yacht club is secure for another year! The net effect is that you annoying retail buyers have been shaken out of positions like fleas off a dog. The big guys don’t care becuase they are still half or more in the position for the long haul and they are going to “buy on the dips.” The question is, where is their comfort level? They need to get back in if they have sold more than intended, so what is the entry point? Is it the Fibonacci point A of S&P 1,290, just about the mid-point between the year’s open at 1,250 and the high of 1,325 or is it point B, the 200 (and 50) dma at 1,280? Either way I think we are close enough to these…
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Thursday Wrap-Up

What the heck was that? May 1st me says, “Hey S&P 500 companies, I know we’re hitting record highs with huge earnings but what can you do for me if I also cut energy costs by 15%?” S&P says “Zzzzzzz.” Something is not adding up. Granted energy stocks make up 15% of the market cap of the S&P and today was another bad day for commodities but Merck down 2%? HP back where it opened the day they had a 10% beat and raised guidance? MSFT is about to release a product that costs 50 cents to make, sells for $199 and will be in 400 Million computers by the end of ’08 yet is trading for the same price as it was in 2002 when the EPS was half of this year’s… Apple is Apple (no comparisons) but even dull companies like JNJ are up 20% a year. The entire S&P earnings, including all the bad ones, is up over 16% for the year and the only reason projections are cautious is the fear factor: Fear of the Fed, fear of terrorists, fear of high oil, fear of consumers drying up, fear of a housing collapse…. Now I’ve been urging caution but I say these things to remind you (and me) that I think the economy is much stronger than people think and that stocks are generally undervalued so, when we do take puts, they are meant to be very short trades where we take the money and run. As a counterpoint to my favorite saying “If it’s a real stock market collapse, there will be plenty of time to short things.” So what did happen today: First off, we finished at lows. Very bad. But we finished on weak volume – very I have no idea what that means. So tomorrow we wait and see with an open mind. The Dow shot down 50 points, dropped another 30 points, rallied 60 points then dropped 70 points – this was one day, not a whole week! We broke down on all indicators and a SOX and Trans rally was murdered just about the same time the oil sector made a comeback at 2 pm. NSM will provide no help tomorrow with another bad report. We can go over the new levels tomorrow but it was, on the whole, quite a debacle. Oil did indeed finish below $67.50, just barely,…
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Thursday Morning

Please read the previous post on stops. It will give you an idea of my main concern at this time. The reason we went for October postions early was that we were expecting a correction when the big boys returned – this is just a little more violent than we thought it was going to be. There is no reason to panic yet, maybe tomorrow… All we have so far is a big, postponed sell-off in the energy sector and a drop in commodities and homes. Are we surprised? We certainly weren’t long on any of these for over a month and anyone who reads this column regularly knows I feel it is long, long overdue. Although the Prof and I have disagreements on short-term builder trends, we have always been in agreement that housing has been way overblown and that the macro trend was down (but kudos to him to sticking to his guns through thick and thin). That being said, housing prices in the UK have gotten surprisingly firm. I don’t expect the US to have the same trend as the UK is uniquely crowded but I expect NY, LA, NJ and perhaps some other cities to hold up better than expected as land is still at a premium in some places: http://news.bbc.co.uk/1/hi/business/5322616.stm Asia is off about a point with Sony’s playstation delays causing a ripple effect in several sectors and Europe is down around a point despite the EU significantly raising growth forecasts for 2006 and 2007. The very positive report carries a warning: “a disorderly unwinding of global imbalances continues to be a threat to the world growth outlook, particularly if the U.S. housing market slows down more markedlyFor goodness sakes Europe, stop watching us and make your own market! The whole point of forming the EU was to create an economic block that was the equal to the US to remove Europe from the thrall of the US markets. Looks like that plan’s going a bit slowly… Asia ignores us, other than sensible things like electronic exports and the Nikkei has risen from 11,000 in late ‘o4 (just 500 points ahead of the Dow) to 16,500 currently (having pulled back from 17,500 in April). While US traders would be jumping out of windows if we had the kind of swings they do, the fact that their markets can prosper – on the very
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Happiness is a Warm Stop

 don’t like automated stops. Not the traditional, set a price at “X” kind of stops as you more often than not get your shares swiped from you just before the stock goes your way. But having firm stopping points is essential if you are going to survive in the market. As options tend to be much more volatile than stocks, we often set stops that would choke a regular trader but you need to discipline yourself to walk away from a bad trade, and sooner rather than later. Before I enter a position (see “My Trading Policies”) I usually wait for an option to go the wrong way, as long as there isn’t some actual reason for it, so I can buy it below my target. When I enter a position I usually take a 1/10 position (1/10 of the total amount I intend to commit, which is never more than 1/10th of my total cash). If I am really, really, excited, I take 3/10 but that has to be something like an FDA approval or misunderstood earnings reports. With my initial position, I usually don’t sweat the stop. I let it go, if it heads up fast, that 1/10 may be all I ever buy. If it heads up slowly or trends sideways, as long as nothing has changed my opinion, I will buy a little more, sometimes the same day but usually one or two days later. At 2/10 in, I will usually let it ride a bit. If the stock goes way down and I think the market is wrong (CHK for example) I will let it go all the way down to half and double down, reducing my basis to a 25% loss. At that point, I set a 20% stop as I will be out 60% on my initial 2/10 and 20% on my second 2/10 which is more than enough to lose on one position! Once I am 4/10 or more into a position, I generally will set a stop of around 20% but I am flexible in that I watch the broad market and will take a bigger loss if my stock is just trading with the market or the sector. My tolerance depends very much on the 50 and 200 dma’s and I will tend to hold for a bounce off a line a bit past my limits. On an intraday basis…
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Wednesday Wrap-Up

100 points down on the NYSE? Ouch! 37 points off the Nasdaq, retracing half of last week’s gains, the NYSE gave up all of last week’s gains and going below 8,300 takes us right back to 8/15, not good at all! http://stockcharts.com/gallery/?nyse On the bright side, today’s declines were led by last year’s leaders, home builders and commodities but we are just not getting a change in leadership we need to make it work. Perhaps the big boys are selling first and buying later, we won’t know for sure until next week probably but it will now be a miracle if this week can be saved. Thank goodness we got out of our September calls while the getting was good! Even so, we took a lot of hits on our October positions and I lightened up on a few in comments but then I was foolish enough to try to pick up some “bargains” ahead of a generally disappointing Beige Book. Oil hit my $67.50 target and stopped dead there, with inventory reports tomorrow we may be heading back to numbers we haven’t seen since March. Gold pulled back $4 after again failing to break $640, this is exactly what gold bugs did not want to happen and rising wages by themselves will not fuel the level of inflation required to keep gold at this level with Iran fading to page 2. ====================================== Despite my own foolish buying, there was no reason to buy any of our positions today as our technicals broke down early and none of our tracking stocks held up. Following these rules would have saved me a lot of money! Rememeber to do as I say, not as I do! I took a gamble, pre Beige Book, and bought the following with just small positions:

  • ABX Oct $32.50s for .80 to cover a poor report
  • CHK Oct $30 puts for .55 – good in a bad report and also general oil meltdown
  • JNJ Oct $65s for .85
  • TXN Oct $32.50s for .80
  • GRMN Oct $47.50s for $2
  • TGT Oct $47.50s for $2
  • BBBY Oct $35s for $1
  • EXP Jan $40s for $2.15
  • ADZA again at $16.45
  • NOK Oct $20s for .80
  • QQQQ $40s for .15
  • STX Mar $22.50s for $1.80

I got out of DWSN at $28.60 (up 10%), whose profits helped me pay for this nonsense. I also let go of the
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Beige Book Wednesday

Big data today! The fed gives us the “State of the Economy” message today in the form of the Beige Book, after skipping August (only out 8x a year) expect traders to be all over this coming into the Sept 25 Fed meeting. In June- Mid July report we saw manufacturing picking up and that spooked the markets that the Fed may tighten again. Consumer spending was dragging but housing starts still looked strong, which gave builders a 10% bounce at the time. Expect this report to be the directional trigger we’ve been waiting for but I still expect a positive reaction as retail spending was strong over the summer. Asia was off this mornng but mostly as a result of a rebalancing of the Hang Seng so expect a lot of weirdness for the rest of the week out there (more so than usual). Europe is off a touch, waiting for the same Beige Book figures we are. I am very disappointed in the EU as it really has become nothing more than a shadow of the US markets! Heineken had a 26% rise in first half profits and credited strong sales in “the Americas” during the World Cup as being a key factor. World Cup? When was that? They must mean South America and boy those guys must have been drinking up a storm because I doubt that more than 20% of ourUS readers this even know who won that thing, yet alone bought a case of Heineken to celabrate… Denmark arrested 9 guys with bombs yesterday but if it doesn’t affect us you won’t hear about it on the US news (to be fair, Japan’s Princess did have a baby…). http://www.news.com.au/story/0,23599,20362796-1702,00.html I’m still expecting a pullback here, same as yesterday so expect some determined selling ahead of the 2:30 Fed report. There are a lot of profits to be taken and a lot of bears were reluctantly pulled into the market in the past month so look for some nice entry opportunities if you are feeling brave this afternoon! Let’s keep an eye on yesterday’s levels but if the transports don’t kick in, we may have a serious problem as they are starting to look like the SOX did but they may also be coiling for a very nice breakout. I’m watching that 2,400 line more closely than any other index! http://stockcharts.com/gallery/?%24tranq Can Apple hold…
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Tuesday Wrap-Up

Wow that went way better than I thought! I’m sorry I missed today, it was exactly the kind of indecicive trading I predicted – for about an hour and a half, then we went right back to rally mode! We got great Nasdaq leadership with strong SOX movement, just what the doctor ordered, along with a great move by the S&P and the NYSE on increasing volumes. The transports are still getting heavy resistance which bothers me more than a bit but I feel like I’m nitpicking… Oil didn’t exactly fall off the table just yet but those 2:30 rallies are getting weaker and weaker as volume sell-offs dominate the NYMEX (gee, I hope it wasn’t something I said). Maybe it was something these guys said – I just found this site that claims oil does not come from dinosaurs but is a renewable byproduct of our planet’s geocycles” http://www.wnd.com/news/article.asp?ARTICLE_ID=51837 This is a tremendously appealing thought but let’s not all go out and buy hummers just yet! I don’t know if I said this in comments or in the column but we do need to evaluate the Valero Rule at this point as there is now a disconnect (as pointed out by zman) between gas prices and oil prices as the Summer driving season comes to an end. Since Valero makes money turning gas into oil, their margins suffer first. We will have to consider this but I think, on the whole, this just makes VLO an earlier version of the canary in a coal mine. As I have been saying for close to two years now, if you don’t buy it, they will charge you less! The first victim of demand destruction will be the refiners but when they cut back and the tankers are full, who suffers next? Gold shot up to $647 as the global economy looks too strong to resist, unfortunately that moved copper up as well but just a bit. Nickel fell 9% for no particular reason. If that was all the consolidation we get out of oil, we may be heading back to $750! On the whole it was a great day as we continued last week’s pattern of an upward consolidation, but with much better volume. ====================================== I went away for the day and my CHK and ECA puts suffered for it! I still believe but my faith is getting shakey… At…
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Tempting Tuesday Morning

Is it time to get rally fever? The big boys come back today and before I get too excited I want to see how they play it. If I had a hundred Billion or so to play with, I would be waiting to see how the other big boys play it too so expect some indecicive trading until someone makes a move, then a lot of following the leaders (think program trading). Let’s try to remember I am still rooting for a pullback as it will be very tough to just keep going up and up for the rest of the year. September is often a market disaster but, then again, so is August… Asian stocks were down a bit today, notably Yahoo Japan was up 2.5% for no particular reason. The fairly reliable OECD(.org) sees European growth “slowing somewhat” in the second half but a pickup both here and in Japan. Stocks in Europe are trending down at the open, indicating there is still a lot of bearish sentiment on the US market. The Dow made a huge move on Friday but it could have been nervous short covering. Today will not give us the answer (unless that answer is blowing through 11,500 on big volume). I won’t be upset unless we go back below 11,400, which is about where we started Friday. http://finance.yahoo.com/q/bc?s=%5EDJI&t=5d The S&P needs to hold 1,305 but, as I said over the weekend, I expect great things in the year ahead. The Nasdaq must break 2,200 for us to get anywhere but could fly up once it breaks out. http://stockcharts.com/gallery/?comp Let’s keep our eyed on the NYSE, right between 8,400 and 8,500 and the SOX, which have no reason not to at least test the 200 dma at 480 if we are having any kind of rally at all. http://stockcharts.com/gallery/?%24sox They found a bunch of oil in the Gulf. Timing is everything yet the press never questions it as a project that has been in the works for 7 years (“today’s” test has been producing oil for a month already) suddenly bears fruit on Tuesday morning after Labor day, just as the oil stocks are falling off a cliff… http://online.wsj.com/article/SB115742365939953524.html?mod=home_whats_news_us Support for oil should be strong at $67.50 but a bounce below $70 will just be a consolidation for the next big down move. Gold has a lot of support at…
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Is Frontline on the Front End of the Oil Collapse?

I was researching tanker and rig counts the other day (I know, get a real hobby!) when I noticed FRO had a bad Q2. That’s strange, I thought, how can an oil tanker company have a bad quarter? http://biz.yahoo.com/ap/060822/earns_frontline.html?.v=1 Well, it turns out they had “a soft shipping market” and the company had to dock several vessels. There are 3,600 active tankers on the sea carrying well over 1Bn barrels of oil at any given time at rates that work out to approximately .10 per barrel per day. http://www.investors.com/editorial/IBDArticles.asp?artsec=23&issue=20060901 Was Frontline just a poorly run company? No, GMR’s revenues dropped 30% from Q1, OSG’s 30%, TK was so far off S&P put them on credit watch. All of these companies have defied gravity and stayed near their all-time highs in anticipation of Hurricane season once again forcing the US to pay triple rates to bring oil into the country so I see some nice short opportunities here. If we don’t get those hurricanes the OSG Oct $65 puts for $1.95 may be in play but I also like the Jan $60 puts for $1.50 as a pre-roll. GMR is less overbought and can be used as a buy/sell signal on the OSGs. So why would there be less tanker traffic during our “energy crisis?” Perhaps we are simply making more of our own… Rig counts are through the roof, literally hitting 20 year highs and that doesn’t tell the whole story as modern rigs are more efficient than the older models. There is a very direct relationship between oil price and rig count and rigs have gone way past the point where they usually begin to drive down oil prices (perhaps because we have cut back on imports so quickly). According to Baker Huges, there are now 1,732 currently active rigs, a 20% increase over last year! If the relationship between rig count and oil normalizes, we may be heading for a serious correction! http://www.bakerhughes.com/investor/rig/rig_na.htm Speaking of Baker Hughes, let’s keep an eye on those rig counts as BHI, SLB, HAL, RIG and DO ALL fell 50% OR MORE between November 1998 and August 1999! And if all this indirect evidence isn’t enough to calm the oil bulls, how about this little gem of a study from CERA which says: A) Current global oil capacity is 88.7Mbd, not the 84Mbd figure that is often cited. B) In…
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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!

 
 

Market Shadows

Selling PVD

Selling PVD

Administradora de Fondos de Pensiones Provida S.A. (PVD) shares will not be trading on the NY Stock Exchange after today. Tomorrow, shares will be harder to sell. Strangely, I wasn't able to find information on the internet, but Paul just sent me a copy of the email he received from Interactive Brokers.

We're selling PVD out of the Virtual Portfolio today at $87.18. 

More details:

From: Interactive Brokers   dated July 18, 2014

Holders of AFP Provida S.A. American Depository Receipts (ADR) are advised that the Company has elected to terminate the Deposit Agreement effective 2014-09-18.

As of the te...



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Phil's Favorites

That time three years ago, when investors temporarily lost their minds

That time three years ago, when investors temporarily lost their minds

Courtesy of 

Joe Weisenthal has a post up this morning about the awful action in gold these past few years. He posted a chart of gold’s price action from FRED, which I’ve annotated to remind you of something that actually happened exactly three years ago – a moment in time at the end of the summer of 2011 during which the investor class had temporarily lost its collective mind.

Investors, you see, had pushed the assets under management in State Street’s GLD ETF to...



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Chart School

3 Things Worth Thinking About (Volume 9)

Courtesy of Doug Short.

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

One of Fiedler's Forecasting Rules states:

"Always be precise in your forecasts: Economists state their GDP growth projections to the nearest tenth of a percentage point to prove they have a sense of humor."

The Federal Reserve has certainly proved both points; they have been very precise in their forecasts and have consistently overstated economic strength as shown. For example, in January of 2011, the Fed was predicting GDP growth for 2013 at 4.0%. Actual real GDP (inflation adjusted) was just 2.19% for the year only missing estimates by roughly 50%. The estimate, in 2011, for long run economic growth, was 2.7%, which has now fallen to just 2.2%.

Unfortunately, 2014 is not shaping up very well ...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Promotions

Last Chance! See The 'Google-Like' Trading Algorithm 'Live' TODAY

Traders and Investors,

RSVP NOW to attend a special presentation TODAY at Noon or 9:00 pm ET, where you’ll see a powerful trading algorithm that’s been tested and proven to return phenomenal results on a consistent basis. 

In fact, it has an 82% win rate…

And had you only traded the conservative alerts recommended by the algorithm since inception, you would have experienced portfolio gains of more than 200%!

Register NOW and secure your virtual seat for one of Today’s LIVE presentations.

When you register for the webinar, you’ll also get instant access to following trading videos:

  • Instant access to FOUR Quick-Start Expectancy...


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Insider Scoop

Morgan Stanley Remains Positive On Stryker Corporation

Courtesy of Benzinga.

Related SYK Morgan Stanley Has Critical Questions For Stryker Corporation Going Into Investor Day Top 4 NYSE Stocks In The Medical Appliances & Equipment Industry With The Highest Revenue

In a report published Thursday, Morgan Stanley analyst David R. Lewis reiterated an Overweight rating and $91.00 price target on Stryker Corporation (NYSE: SYK).

In the report, Morgan Stanley noted,...



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Zero Hedge

Goldman's Yellen Press Conference Post-Mortem: "Few Surprises"

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Via Goldman Sachs' Jan Hatzius,

BOTTOM LINE: There were few surprises from Fed Chair Yellen's post-FOMC press conference.

MAIN POINTS:

1. Yellen made two slightly dovish remarks on labor market developments. First, she stated directly that she felt the slow increase in wages was indicative of labor market slack. Second, she said that her own personal view was that there was a "meaningful" cyclical shortfall in participation, when asked about a recent paper by some Fed authors indicating otherwise.

2. On the topic of "considerable time," Yellen declined to provide any specificity on what the phrase means ...



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Sabrient

Sector Detector: Bulls go down swinging, refusing to give up much ground

Courtesy of Sabrient Systems and Gradient Analytics

Although the stock market displayed weakness last week as I suggested it would, bulls aren’t going down easily. In fact, they’re going down swinging, absorbing most of the blows delivered by hesitant bears. Despite holding up admirably when weakness was both expected and warranted, and although I still see higher highs ahead, I am still not convinced that we have seen the ultimate lows for this pullback. A number of signs point to more weakness ahead.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-r...



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OpTrader

Swing trading portfolio - week of September 15th, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Enjoy!

[Sign in with your PSW user name and password, or take a free trial here.]

Image courtesy of Business Insider, Jay Yarow's This Is The Best Description Of How Apple's Business Works Right Now.

 

...

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Option Review

Big Prints In VIX Calls

The CBOE Vix Index is in positive territory on Friday morning as shares in the S&P 500 Index move slightly lower. Currently the VIX is up roughly 2.75% on the session at 13.16 as of 11:35 am ET. Earlier in the session big prints in October expiry call options caught our attention as one large options market participants appears to have purchased roughly 106,000 of the Oct 22.0 strike calls for a premium of around $0.45 each. The VIX has not topped 22.0 since the end of 2012, but it would not take such a dramatic move in the spot index in order to lift premium on the contracts. The far out-of-the-money calls would likely increase in value in the event that S&P500 Index stocks slip in the near term. The VIX traded up to a 52-week high of 21.48 back in February. Next week’s release of the FOMC meeting minutes f...



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Digital Currencies

Making Sense of Bitcoin

Making Sense of Bitcoin

By James Black at International Man

Despite the various opinions on Bitcoin, there is no question as to its ultimate value: its ability to bypass government restrictions, including economic embargoes and capital controls, to transmit quasi-anonymous money to anyone anywhere.

Opinions differ as to what constitutes "money."

The English word "money" derives from the Latin word "moneta," which means to "mint." Historically, "money" was minted in the form of precious metals, most notably gold and silver. Minted metal was considered "money" because it possessed luster, was scarce, and had perceive...



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Pharmboy

Biotechs & Bubbles

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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