Uncharted Waters

Not for the market. But for me.

I don't trade the market (as in Indices) as I do individual stocks. I normally don't follow the S&P 500 charts either. However, I used to watch it pretty much every day from Sep '08 to Jun '09. At that time, I had made some annotations to the chart, including a lot of downward sloping trendlines & a Fibonacci Fan line from the March bottom to the May peak.



When I pulled up that chart today for no particular reason, something stark dawned upon me. The 61.8% Fan Line has acted as formidable support in Jul 09 [Exihibit 'A']. This is when everyone & their uncle was counting big on a Head & Shoulders pattern (which turned out to be a major bear trap).

The same 61.8% Fan Line acted as support in Early September [Exihibit 'B'], and pushed the market to new 2009 Highs.

Once again, we've been scraping the same 61.8% Fib line for the past few days. Seems to me we either push up another 100 points higher. Or 125 points lower.

A1 Game

It's been IPO galore this week. I've opened small positions in A123 Battery Systems (AONE) yesterday (500 shares). I also bought 500 shares each of Select Medical (SEM) & Shanda Games (GAME) today. These will be speculative plays, which I would hold for a while (6-9 months).

I've also bought some Eastman Koday (EK) today.




Moneygram International (MGI) was a stock that I discovered earlier from Tim (Slope). I believe it presents a decent entry opportunity right now.





I've also added some Hartford Insurance (HIG) (300 shares). I plan to buy another chunk at the indicated support line.

Nibbling back into PBH

I've reentered PBH with a small position. Plan to add more around 7.02.

It Ain't Glorious, Always

Great American Pacific (GAP) was a stock I bought at 4, and was stopped out at 3.82 in July. It's kind of shameful, but that is the problem or beauty of sticking to rules. It could have gone to zero or doubled. In this case, it's more than doubled, and made a breakout today (even though on low volume).

I've added a small position in GAP.

I've also closed my WFMI shorts & AAPL Puts (Jan 170 stirke) at a loss. INTC is the only remaining short position.

Hedging

I bought a large quantity of Walmart Oct $55 calls to hedge my portfolio against weakness in the markets.

I expect Walmart to go up if the market as a whole tanks.

Closing Trades

Today being Options Expiration, I've closed the following trades, at a 45-60% profit:

MCD Sep 60 Puts
ERTS Sep 19 Puts
S Sep 4 Calls



I'm letting the following Naked Puts expire worthless (for a 100% profit):

LDK Sep $9 Puts
HIG Sep $19 Puts
DELL Sep $15 Puts
YHOO Sep $16 Puts



I will be assigned on the following options which were sold as Covered Calls. I will re-enter the underlying Tickers at an appropriate time.

VLO Sep $19 Calls
DELL Sep $16 Calls
NVDA Sep $14 Calls
MTL Sep $12.5 Calls

I'd be assigned on the WMT Sep $40 calls as well. This made me 10% over 4 months.

Good Old McDonald

McDonald's finally closed the gap from May.




I'd earlier sold Sep 60 Strike Puts on MCD. I've added to that position by buying some stock.

More Sins

I've added two more stocks from my Sinful watchlist.

I had bought some Electronic Arts (ERTS) earlier, and added to it.




A recent, glowing article fron Barron's notwithstanding, Activision (ATVI) has been languishing. I have initiated a position in Activision (ATVI).





I'm late by a week in Take Two Interactive (TTWO). In spite of falling revenue, analyst downgrades, etc it's off to the races. This is also the most volatile of the lot!

Out of Sangamo

I'm out of Sangamo Biosciences (SGMO) for the time being. It ran up to a decent resistance level sooner than expected. From the time I bought it in late July, it's up by 60% in 5 weeks, and I'm closing my position.

Trade Triggers

... did the job for me. I'm usually not a fan of trade triggers. Instead I have alerts sent to me, and trade based on them. As I had planned on being out of pocket for a few days, I had used Trade triggers and they did work remarkably.

I had planned on adding on to North American Palladium (PAL) in the green tinted area, from a while ago. Trade Triggers did it for me.





Same thing with Orient Express Hotels (OEH). I'd bought it on Monday and wanted to buy more on a retest of the support line. Triggers did it for me.





They also got me out of Western Refining (WNR). Even though the Doji & Hammer make the chart interesting now.