Last weekend, in my Weekly Forecast, I said, “For the new week, as long as the financial sector continues to recover to the upside, the overall market should do the same. On this initial bounce, it would be good to see the market go at least above the daily MAs. For SPX, it will be about 1300; and Nasdaq, about 2350. ”
Indeed, early in the week, the financials were strong, and the market rallied on. On Wednesday, both SPX and Nasdaq rallied above the daily MAs with Nasdaq testing 2350 and SPX getting above 1291. With 1 hour left in trading on Wednesday, I told our members:
HappyTrading
Posted July 23, 2008 at 12:04 pm | Permalink (Edit)
I’m starting to go cash!
That was the perfect timeing! On Thursday, investors locked in profits even though BIDU, QCOM, and AMZN announced great news! In my Thursday’s even post, I also said,
“The market is doing what it’s supposed to do: take some profits after a week’s gain. Although the quick drop may have been a little sharp, sometimes this could be a good thing. This may help to release the selling pressure fast so that the market can resume the recovery… Tomorrow is Friday, so people may want to keep things in cash. If the market can hold flat or maybe even make some small gains, it’ll be encouraging.”
This is exactly what happened on Friday. The market closed with small gains, with the techs leading in the front. Needless to say, our published trades were once again very good. Besides 1 trade, we’re GR$$N on all the other closed trades:
POT ($202)
PYPHX, Aug 200 calls, $12.5, +5%
DUG ($37.45)
DUGHI, Aug 35 calls, at $4, +21.2%
BAC ($33.35)
BACHF, Aug 30 calls, at $4.3, +104.7%
FXI ($141.5)
FAHHE, Aug 135 calls, at $9.6, +31.5%
BAC ($35.45)
BACHF, Aug 30 calls, at $4.5, +11.1% (partially out)
BAC ($33.05)
BACHF, Aug 30 calls, at $4.2, +3.7% (all out)
ICE ($96.5)
ICEHS, Aug 95 calls, at $8, +31.1%
CF ($158)
CFHZ, Aug 155 calls, at $12.7, +17.6%
MON ($115.7)
MONTB, Aug 100 puts, at $3.5, -40.7%
We only have 1 trade left open this week:
GENZ ($79.95)
GAAHP, Aug 80 calls, at $2.65 (open)
Friday close: $0.55; unrealized gain/loss: -79.2%
Hope you’re enjoying your weekend. I’ll be back tomorrow with my Weekly Market Forecast.
Good night and HappyTrading! ™
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