So, was that a successful bounce off that S&P support? Some thought so and decided to play a hand. I’m not so sure that bounce was a very good one. This was a low volume, tepid day. At the close there was some jockeying for position before the weekend. It’s a "place your bets for Monday’s open" close. I don’t trust this market and I’m sure I’m not the only one. Obviously, the AAPL short was not covered and won’t be until it gets to 160. We can wait. This is a bear market, at some point it all goes lower. All.
Hope you all had a great and profitable day.
5 Comments
June 27th, 2008 at 4:15 pm
YAHOO NEWS BY LINE: “Obama says the American people need the Clintons” ECKLEBOB: Is Obama referring to North or South America? We didn’t need ‘em the first time.
June 27th, 2008 at 4:34 pm
Let ‘em fail http://www.cnbc.com/id/25406894
June 27th, 2008 at 4:39 pm
Had a nice day and a nice few weeks as a matter of fact. Got rid of my short term FFIV July 25 puts at a slight loss. This thing is very resilient especially compared to its March low. Still have my Oct and Jan puts though and they make up for the loss and then some. I’ve been accumulating GLD/SLV and other precious metal stocks since I ‘m looking for a run. Outside of that I’m scouting for some good ideas for a short position but waiting for a bounce of some sort. Possible ideas are banks, housing, tech, …. etc, etc…. too many to choose from.
June 27th, 2008 at 5:07 pm
The market is hitting or close to lows but the VIX is still so low….anybody have any ideas why?
June 27th, 2008 at 6:51 pm
VIX is trading at the upper boundard of its trading range of 20-24 which means the market could be putting in a bottom. If it VIX breaks to the upside, there will be panic selling. If the VIX goes lower, the market could rally. It is relatively low because there has not been any panic selling or capitulation. That is needed to put in a bottom. Until then, expect volatility.
I sold covered calls on July 135 SKF on Wednesday. Close them out today with a 4% net profit (not bad for a low risk, 2 day investment).
This afternoon sold Sept. $40 covered calls at $2.65/share on Mellon Bank (September expiration). The stock closed at a 52 week low of $38.6/share. Potential profit of 12% (over 3 months) including dividend with 8% downside protection.
Basically, I am selling covered calls on both sides of the volatility in financials.