I had a hunch today might jump up some after around 2 days of losses, but on the charts everything was still moving down. The only precise clear signal I saw for a real call option trade was on FSLR with it’s big red candle dipping below the BB’s and on smaller charts showing technicals moving up in the morning.
Today stocks really moved with force. I noticed on the charts and highs/lows how much of a swing there was showing major candle wick buying support/confidence. I have to admit the good thing about practice trading and figuring out which side of the trade you should be on is that you can be wrong and not lose money! Currently looking at AAPL charts on the 233 min. there is a clear picture of what happened today and likely on every chart I look at too. For the past week and half stocks have been falling and today from what I see will create a few up days or call option practice trades. Currently many of PUT trades were profitable even though they closed higher because they fell lower.
For a moment I considered staying in the Puts for tomorrow, but the right thing would be do to close them since I know stocks are about to move higher and change sides. The only ones within yesterdays practice trades that would have worked would have been ones hitting low low’s. (or +$1-2 on option)
Now, I still have my “ifs” because also on all the 55 min charts it shows each white candle getting smaller and smaller not hitting top BB’s (except AAPL). So this could also bring me to the conclusion that todays boost could be short-lived and fall again hard tomorrow. I’m going to play dcalls because the charts say a second day of upward movement, but we are still in all downtrends currently. So since I’m not playing long-term Puts I will trade what I see on a weekly basis.
November 14, 2008 | Categories: trading stock options | Tags: aapl, AKS, call and put option practice trade picks, First Solar, fslr, goog, new rally 08', november stock move, rimm, stocks jumping off bollinger bands, support with candle wicks, swing day, swn, x | 2 Comments
Looking at my charts and current economic market conditions I came to two conclusions.
#1 The market just had a mini-rally, lost the rally, and is continuing in the major downtrend
#2 Many stocks charts show a possible “V” hitting the bottom, hitting bollinger bands on weekly big charts, which MIGHT mean a possible “W” major trend reversal may happen in the next few weeks we’ll see if that last down run will be the last at least for a while.
We’ve been in a full down down down for a full year. It’s likely possible to continue it, but stocks are at real discount prices looks at X and AKS and AAPL which its retail stores are constantly SO BUSY you’d think we were in a real bull buying consumer spending crazy type market. I also like SWN, FSLR, and QQQQ but since everything says “down more” currently I’m playing PUTS except for FSLR which is being pushed down so hard and on shorter charts shows tomorrow it will likely spike some up before moving down more. All my plays are short term likely to be out tomorrow or the following day. I find being in for just one market day increases my profit/time in play for trading options.
November 13, 2008 | Categories: trading stock options | Tags: aapl, AKS, call and put option practice trades, downtrend continues, fslr, november 2008 stock options picks, QQQQ, stocks at a deep discount X, swn | Leave a comment
The day after the election said a lot. Basically in my opinion the markets gained so much in the past week that after election day they puked. At least in the short term on charts it looks like stocks will continue to fall some more especially RIMM, AAPL, QQQQ, FSLR, AKS, and GOOG on daily and 233 charts. The only stock I would bet against the market flow at the money is Southwestern Energy Company (SWN) with its strong momentum breaking through all major down trends currently at $37 which keeps hitting lows of $26 then popping back up to $28-31. I can see it surpassing $45 by end of November 08′ if it keeps up. Magic is happening on weekly charts right now. Real strong support hitting real lows on bottoms slowly curving up creating big U’s showing a real change in direction, but how much change and how soon?
November 6, 2008 | Categories: trading stock options | Tags: aapl, AKS, call and put option practice play picks, continued downtrending charts, continued october crash 08, fslr, goog, market moving events that move stocks, QQQQ, rimm, southwestern energy company review, stocks falling in november 2008, swn, the day after election | Leave a comment
Another -500pt drop today for the DJIA. A -15% drop for SWN down to $26 again! These market swings are ridiculous. I’d hate to own stock right now OR trade options. It has been very unpredictable so the phrase “missed money is better then lossed money” is sounding better and better right now while staying out of the market, watching, studying, and practicing my techniques.
Put options are the definite play here still. October 2008 is still crashing. RIMM even at $48. One stock I did read about that really struck me as a great turnaround stock once the market changes its mood is AKS – AK Steel Q3 earnings call. Low profits, but still “solid balance sheets” with a PEG of .16!!!! And still very profitable with new material price increases even with steel prices coming down at the minute. It lowered its forecasts, BUT forecasts for the stock and cashflow are still “solid” and bringing in real cash (hundreds of millions). The stock ended today at only $12 with a high this year of $90. I will be watching in closely with QQQQ’s for likely long long term call option positions after the President is elected.
October 23, 2008 | Categories: trading stock options | Tags: 2008 call picks, AKS, big DJIA drop, companies with solid balance sheets and cashflow, low peg stocks, october 08 market crash, put and call option practice trade picks, QQQQ, swn, trading for a living | Leave a comment