Well, this has been a nice run in the past few months and I think that the big boys are going to start taking in some profits on the runners. So here are the choices a stock trader is left with:
1. Sell everything off
2. Hold onto the stock
3. Sell covered calls
4. Buy Puts
I enjoy selling covered calls if I already own the stock. Or, if I am dabbling in options, I enjoy a technique call bear put spreads. Since I wish to keep this simple, go back to the October 22, 2006 posting and a covered call is explained.
One thing you will have to get used to is losing money. When the stock market falls, one way to temper the loss is to sell covered calls. You will still lose money in your overall portfolio, but you should be used to that problem by now. Remember - eliminate emotions from your trading and your trading will dramatically improve. I believe it is best to marry technical analysis and fundamental analysis, but let technical analysis be the decision maker in your stock trading.
Here are the stocks that I am going to sell covered calls on and why:
WCC - the MACD has crossed to the downside. Going to sell a December $65 call.
OVTI - the overall market is not making headway. Going to sell December $17.5 call
ICE - this stock has given a 33% rise since September, 2006 when I bought it for near $75. I really hate to sell a covered call on this one, but I have make a fair amount of $$ on this one. I am actually going to sell a "deep in the money" covered call. I plan on selling a December $90 call. This way I can get more money out of the deal than selling a covered call at $100.
PACR - decisions, decisions, decisions. Emotions say "do nothing". MACD says "do nothing." I am going to wait for this stock to declare it's next direction before making a move.
DXPE - watch this one as this one bucked the market trend and traded up today while the market tanked. Also had high trading volume in it meaning a big buyer came in. MACD is saying "buy".
LTM - this one said "sell a covered call" back on November 6th when the MACD crossed down. I lost a little bit of money on the covered call, but when I rolled it to December, this has held out and the covered call has been profitable.
Good luck trading. I will give more educational stuff in the future when I get a little more time.
JD
Monday, November 27, 2006
Tuesday, November 07, 2006
ELECTIONS HEADING WRONG WAY FOR TRADERS
Boy, as I write this I am watching the investing arena starting to respond to the Donkeys taking over the Legislative branch of our country and the outlook isn't pretty. The last two days of positive trading may be ripped away from us when the market opens tomorrow morning. Index futures which usually help determine the general direction of the market are sharply down on the news that the Donkeys hold the majority in the House of Representatives. As a long-term outlook, I would say the economy will head into recession if the Donkeys roll back all of the tax cuts that have benefitted the corporations the past few years. It will even hit the common man when the estate and death taxes breathe their last breath in a few years.
I have noticed how corporation after corporation has been "buying back" their outstanding shares in the past few years. Since dividends have not been taxed as high as they were in the past, the corporations were noticing a windfall and they had to do something with that extra $$$. What better than buy back your own shares if you were confident in your company. Let's wait and see if some corporations start suspending their buy backs.
Al-Qaeda has been waiting for this day when the Donkeys control our government. I know the Dems are soft on defense, undercut our military and demean their mission and it is evident in how John Kerry spoke last week. Al Qaeda has known since Vietnam that the US cannot finish the job when their own people on the inside don't support their own government against an enemy. Come on folks. The US was attacked by an enemy on 9/11 on our own soil by a foreign enemy. People try to correlate it with Pearl Harbor, but Hawaii wasn't even a state in our Union when it was attacked and we as a country had the balls to stand up to the enemy and kick their ass and it took less than five years. Two of the reasons we haven't been able to kick Al Qaeda's ass is that we have the U.N. and the Dems obstructing our path to defend ourselves and kill those who have declared war on the US. I am way willing to temporarily give up some of my "civil liberties" such as wire tapping, currency tracing, etc. so that my daughters can live in a free world and one not ruled by radical Muslims - Radical muslims that degrade women, make them cover 99% of their bodies, don't allow them to vote, get raped if their husbands commit adultery and basically strip them of every right that women in the US take for granted. These radicals also behead those who say any type of criticism of their religion. Ask Theo van Gogh's family, ask the Pope Benedict, ask Nick Berg's family. The list goes on and on.
Have the fat elephants been the savior? Hell no!!! We have such porous borders that dirty bombs have most likely passed both North and South. If they are being shipped in Europe they have to be coming across our borders in the US. Hell, even our own country is smuggling them across to test the security of your borders. What are the grades of the Repubs by my standard? F- on border security.
I have family serving in Iraq and I hope they return safely, but sacrifice for freedom is what America is all about. Dems complain that 2,500 lives is too many in the war on terror. I am not trying to minimize their deaths. Believe me, I pray for them every day, but put this war into perspective. Civil War deaths on the Union side was 249,458. On the Confederate side, 124,000. WW I - 63,195 deaths. WW II - 115,185 deaths. Why is it that we are proud of those who died for this country for the past two centuries and preserved our freedom, but when it comes to our current century, the one I am living in, the one you are living in, we have those who turn their backs on the defenders of our overall freedom?! (I agree that we are not truly free when we have wire taps and tracking of financial transactions, but look at what they are tracking. Phone calls to foreign countries that harbor terrorists, financial transactions over $25,000, etc. When is the last time you called your friend Muhammed who lives in Afghanistan? When is the last time you transferred $25,000 out of your bank account to an offshore account?)
I am not ready for pacifism. I am ready for agressiveness, determination and the will to survive.
I have noticed how corporation after corporation has been "buying back" their outstanding shares in the past few years. Since dividends have not been taxed as high as they were in the past, the corporations were noticing a windfall and they had to do something with that extra $$$. What better than buy back your own shares if you were confident in your company. Let's wait and see if some corporations start suspending their buy backs.
Al-Qaeda has been waiting for this day when the Donkeys control our government. I know the Dems are soft on defense, undercut our military and demean their mission and it is evident in how John Kerry spoke last week. Al Qaeda has known since Vietnam that the US cannot finish the job when their own people on the inside don't support their own government against an enemy. Come on folks. The US was attacked by an enemy on 9/11 on our own soil by a foreign enemy. People try to correlate it with Pearl Harbor, but Hawaii wasn't even a state in our Union when it was attacked and we as a country had the balls to stand up to the enemy and kick their ass and it took less than five years. Two of the reasons we haven't been able to kick Al Qaeda's ass is that we have the U.N. and the Dems obstructing our path to defend ourselves and kill those who have declared war on the US. I am way willing to temporarily give up some of my "civil liberties" such as wire tapping, currency tracing, etc. so that my daughters can live in a free world and one not ruled by radical Muslims - Radical muslims that degrade women, make them cover 99% of their bodies, don't allow them to vote, get raped if their husbands commit adultery and basically strip them of every right that women in the US take for granted. These radicals also behead those who say any type of criticism of their religion. Ask Theo van Gogh's family, ask the Pope Benedict, ask Nick Berg's family. The list goes on and on.
Have the fat elephants been the savior? Hell no!!! We have such porous borders that dirty bombs have most likely passed both North and South. If they are being shipped in Europe they have to be coming across our borders in the US. Hell, even our own country is smuggling them across to test the security of your borders. What are the grades of the Repubs by my standard? F- on border security.
I have family serving in Iraq and I hope they return safely, but sacrifice for freedom is what America is all about. Dems complain that 2,500 lives is too many in the war on terror. I am not trying to minimize their deaths. Believe me, I pray for them every day, but put this war into perspective. Civil War deaths on the Union side was 249,458. On the Confederate side, 124,000. WW I - 63,195 deaths. WW II - 115,185 deaths. Why is it that we are proud of those who died for this country for the past two centuries and preserved our freedom, but when it comes to our current century, the one I am living in, the one you are living in, we have those who turn their backs on the defenders of our overall freedom?! (I agree that we are not truly free when we have wire taps and tracking of financial transactions, but look at what they are tracking. Phone calls to foreign countries that harbor terrorists, financial transactions over $25,000, etc. When is the last time you called your friend Muhammed who lives in Afghanistan? When is the last time you transferred $25,000 out of your bank account to an offshore account?)
I am not ready for pacifism. I am ready for agressiveness, determination and the will to survive.
WCC STILL GOING STRONG
WCC has shown a secondary buy point if you haven't already gotten in on the stock. I still see this one in the bottom of a cup and handle.
Watch OVTI for a secondary buy point again. I see this signal just like in WCC.
So much for ENTG helping me out. This stock took a hit after it reported that its future outlook for profit is going to be smaller than expected. Since this cup and handle failed, I'm out.
I apologize for not writing sooner. Life gets busy.
Good luck trading. JD
Watch OVTI for a secondary buy point again. I see this signal just like in WCC.
So much for ENTG helping me out. This stock took a hit after it reported that its future outlook for profit is going to be smaller than expected. Since this cup and handle failed, I'm out.
I apologize for not writing sooner. Life gets busy.
Good luck trading. JD
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