DOW closes below 11,000!
February 28, 2006 by Daniel Beatty · Leave a Comment
Well the indices fell hard today!
Support levels currently are for the DOW - 10950; the NASDAQ - 2280 (right where it is); the S&P - 1275
So I will expect a continuation of the drop and a testing of support levels.
The drop helped my MDC trade; unfortunately it has no messed up any possibles I was looking at. I will continue to look for some short term MAR spreads but we may have to wait until next week for some APR spreads to come to fruition.
No TagsMDC position
February 23, 2006 by Daniel Beatty · Leave a Comment
Interesting couple of days.
MDC went up over $2 yesterday on no news and normal volume! It even broke out of its descending channel!
Then today MDC fell back into the channel but just barely and it is resting on the 30 dma. Now we wait and see if it bounces off the 30 dma or continues into the channel.
I hate when a stock does not do what it is suppose to do! It is possible that on the housing data that came out last week that this stock is now trying to form an ascending channel; however with the fears of continued interest rate hikes I would expect a squash on this attempt.
We shall see tomorrow!
No TagsChosen MDC for Bear Credit Spread
February 21, 2006 by Daniel Beatty · Leave a Comment
A little more risk as the probability of closing below $65 is 70% instead of the 80% I traditionally like to have. However here is my explanation of the trade.
MDC Bear Call Spread
Sold MAR $65 CALL for $1.10
Bought MAR $70 CALL for $.25
for a credit of $.85
If the stock closes below $65 in 23 days (MAR expiration) then the trade will be profitable.
Currently it is in the housing market which has been trending down and the stock itself is in a downtrending channel with resistance currently at $64 or the 50 dma.
MACD is peaking high and so is STOCH. A dividend of $.25 is coming on 2/23. I suspect the stock will drop to $58.50 before the next rebound.
No TagsLooking at one of three plays for tomorrow
February 20, 2006 by Daniel Beatty · Leave a Comment
Looking at a bull put for United Steel (X), and bear calls on MDC and TECH.
I will give details tomorrow after the close. I want to wait and see what tomorrow brings for these stocks.
No Tags
