The NASDAQ 100 Chart I drew below is showing signs of life. I charted $NDX, but will trade QQQQ options if I can get the premium I want. This $NDX chart highlights two important points to consider. The first point is the Williams %R indicator and the second point is the trend lines. I circled the…
Williams %R Indicator Says to Buy S&P 500
My favorite technical indicator lately is Williams %R. I’ve been writing a lot about it lately saying we should all watch it to be ready to pounce. I was hesitant on Tuesday to believe the 28 day indicator would stay up. On Wednesday I still didn’t see enough of a clean break above Williams %R…
Sold Same MON Covered Call for Third Time
For the third time I sold the same covered call on Monsanto (MON). I got out of my covered call last week for a profit the second time. MON dropped nearly $10 from its recent high before finding footing and rebounding yesterday and today. I tried to sell a March 85 call, but then MON came off…
S&P 500 Chart ($SPX.X) – March 6, 2009
When I wrote about the S&P 500 Chart two weeks ago I said I expected the 741 line to hold support, but if it broke to expect a steep sell off. Well, it broke and dropped another 75 points in just a few days (which happened to be an intraday low of 666 and change…
Legged in to Long Stock, Short Straddle on USO
Not long after I sold covered calls on my 300 long shares of USO oil started to recover. I didn’t want to roll my covered calls too far from expiration, but wanted to squeeze some more profit from the position. Yesterday I planned to sell new March 25 puts to go with my March 25 calls,…
Closed MON Covered Call, Again
For the second time I took a round trip ride on Monsanto (MON) covered calls. Last week I closed my covered call on MON and then sold the same covered call as MON rallied. I sold the second MON covered call near the high of the day and saw it nose dive after that. I…
End of Month Summary – February 2009
February was a rocky adventure for sure. It wasn’t nearly as volatile as January was for me, but offered some interesting twists. A sizeable chunk of my holdings returned to cash where I haven’t been too anxious to change that with my bearish stance lately. Consider this, a year ago I had nearly double my…
Dow Jones Industrial Average ($DJI) Chart – February 27. 2009
The DJIA chart below goes back 12 years and shows OHLC monthly price action. I couldn’t find any worthwhile trend lines I liked enough to draw a conclusion from yet. The past four months might be starting to act like they are in a trading channel that’s still heading south, but it’s too early to…
Sold MON March Covered Call, Again
Two days ago I closed my Monsanto (MON) March 80 covered call for a profit when I bought it back at $2.40. It bounced around more that day and again yesterday. Yesterday morning I entered an order to mimic the first trade I made last week. While MON was trading at $80.18 my limit order…