The chart from January 23rd for the Dow Jones Industrial Average held true this past week to the trading channel I drew. It broke above the shorter trend line of lower highs, but couldn’t get outside of the much longer channel. Since that index charts the same this week I’m moving to the S&P 500, but instead of simply charting…
Month: January 2009
DRYS Starts to Sink and I Jump Ship
DRYS has gotten too risky for me (as if it was ever safe). After announcing more bad news last night about breaking loan covenants, a week after suspending their dividend, I jumped ship and covered all short positions and sold my long positions while DRYS was much lower than I thought it would go in…
Current Positions – January 28, 2009
I’ve been itching to make a new trade today, but held back since it seemed I didn’t have any good ideas other than it’d be cool to make more money. I tend to make mistakes when that’s my starting point. Instead of posting trade details today I’m just showing what my current portfolio looks like. I…
Added to Options Exposure on TDW
After adding a second leg of two calls on top of my 200 shares of TDW last week I’ve only seen TDW go up. That’s good for my 200 shares, but bad for my four calls, especially since two of them are uncovered, aka naked. This morning I clued in to another move that could help…
Dow Jones Chart – January 23, 2009
Today I charted the Dow Jones Industrial Average ($DJI or DJIA) for the first time this year and once again I see that the Williams %R indicator is the one we should be watching every day. On January 6th, %R broke below overbought. That was at the peak for the DJIA for the previous two months…
3 New Call Option Trades – DRYS, TDW, CELG
After charting DRYS a couple of days ago and saying $10 should offer support they announced they were suspending their fat dividend. Had I not frozen in my seat I’d have realized that even with the BDI rising shorts would have a field day with this news and those in it for the dividend would…
DRYS Chart – January 21, 2009
I’m still long 1200 shares of DRYS (DryShips Inc) including the six June 2.50 calls I own. I’ve sold three February 17.50 calls on DRYS and I’m debating more. Part of my analysis always includes a chart. So, here’s the DRYS chart as of around 12:25 pm today. What I see is that DRYS is…
S&P 500 Chart (SPX.X) – January 16, 2009
The last time I charted the S&P 500 (SPX.X) I drew a trend line of lower highs. That line broke to the upside and the SPX got above 900 for just over a week. Then the Williams %R indicator broke below the overbought area and the SPX unwound. For those not still lost in New Year’s celebrations this…
Option Rollout on DRYS
I’ve always stepped in and out of each leg of options one trade at a time. Today I used what TD Ameritrade calls a “complex option” trade, a net credit spread rollout, on DRYS and saved one leg of commissions. Thanks to the comment yesterday by Mule65 regarding my FCX option rollout I learned. I liked…