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More Momentum Monday!

Well that was a nice week’s rest wasn’t it?

Mr. Jones reasserts himself, wiping out 6 sessions of losses in one fell swoop but stopping just over the 12,100 line in a very impressive outing.

Who would have thought that could happen?  Oh yes…. me!

Those DIA Mar $121s are already $4 (up 20%) and, of course, there was no reason to take the puts on today’s action.

Of course, had I really known it would take off this quickly, I would have gone for the current $121s, which doubled today from .45 to .90 but I was still concerned about pre-election jitters (but I guess I’m the only one).

It seem the virtual assurance of a Democratic House with the Republicans maintaining control of the Senate is just the kind of hopeless two years of gridlock that investors have been hoping for.

We all know I am no fan of a commodity rally but today’s round of merger mania left investors feeling everything is undervalued.

OSI is being taken private for a 23% premium, NVDA is buying our old friend PLAY (good move), HET is buying LCLBF (old news), MCK is buying PSTI for a 15% premium, ABT is buying KOSP for a 50% premium (nuts) and FS is being bought by Bill Gates and Saudi Prince Alwaleed for a 28% premium.

That’s a $14Bn day!

The S&P blew through my 1,370 bullish target and didn’t look back until it beat 1,380 where it decided to take a quick break.

The NYSE tore through 8,800 by 1pm and never looked back while the Nasdaq took a mild rejection off my 2,375 target in the final minutes, but didn’t look worrisome.

The SOX were the real star of the day with a 2% gain right through the 50 dma finishing near the day’s high at 457 and the transports gapped over the 200 dma and closed at a whopping 2,609.

Gold was well behaved, hanging out at $627 but still not impressing the miner stocks while oil moved up .88 to $60.02 and that sector acted as if $100 oil was right around the corner.

Perhaps it is, as I see nothing else that explains the number of record highs being recorded in the oil patch.  Other than VLO, the bulk of the regulars we watch have moved 35 to 50% above the trend for oil in the past 3 months.

I’m not going to worry about it – we’ve had a lot of great picks lately in the non-energy arena and I seem to have gotten a handle on the earnings reports so we have a few fun weeks ahead of us!

==================================

AEP was a no-trade under the Valero Rule.

ABX was a no-trade due to lethargy in the gold patch (and gold did not break $630).

I couldn’t resist the BP $65 puts for .15 

BRY went up 1.3% and gave us a .45 entry on the $30 puts ahead of earnings.

CAG made a nice play with a .20 pick up on the Dec $25 puts which finished at .30 (up 50%) depsite the great surroundings

CAT Jan ’09 $60s came in at $11.50 and now we wait…

In comments Arnie suggested the LLY Jan $60s for .45 and I agreed with that one.

MUR Dec $50 puts were added for $3.30.

OP came up with NTES, intraday pick of the day!  The Mar $17.50s we decided on for $1.10 should do very well after their spectacular earnings report this evening!

We cashed out the SIRIs at $4.02 (up .30) and traded for the Dec $4s for .25to protect the principal from Wednesday’s earnings (just in case).


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  1. phil, you mean NOV on the BP $65 puts for .15, right?


  2. oh, and one more thing, the new blog comments format is much more difficult to read on my PDA; comments show up as a very narrow column, but it still legible…


  3. Oops, fixing – thanks!

    Sorry about PDA comments, first I’ve heard. We will check it out in the final version.

    What PDA do you have?


  4. its a Samsung i730 running Windows Mobile 2003


  5. Oh man I thought I came up with NTES today not Arnie, I gotta figure out how to get a mention on the main blog!
    :-P

    LOL – you rock Phil!!


  6. Sorry OP, that was you – gotta watch that Arnie, he’s a sly one!


  7. No clue what NTES was / is -not me
    just looked at them -neg 7.4% in AH
    Hmmm not me not me!! 8-)


  8. Why NTES down in pre-market ???, earning OK..


  9. JD
    12:34 am UPDATE 2-NetEase sees sharp fall in Q4 profit from Q3 Reuters