Bernanke does not kill the markets

Well it looks like me positions are safe as Mr. Bernanke talked up the economy very well and then answered some questions that the markets didn’t like. So overall a great balance that spurred the markets up a little. The DOW is now sitting at a ressistance point, today we shall see if the markets rise above that point or retreat like I have previously thought.

My positions for FEB expiration all look good to close profitable. New positions to come this weekend. Probably another play on the OEX and maybe a play on the SPX.

The individual stocks on my watchlist are all over the place. AAPL and MGM look ripe for another play but we will have to wait to see what they do at their resistance lines.

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DOW breaks 11,000 again - Bernanke tomorrow!

Well the DOW hit the 52 week high of 11,047 today and managed to close above 11,000.

Currently the DOW is in an ascending channel and it looks like if the pattern stays the DOW will stay around 11,000 for the next couple of days and then sink back to about 10,780, barring any news, good or bad. However this is not going to happen as Ben Bernanke the new Federal Chairman is going to make his first testimony tomorrow before Congress. Things can get a little weird when a fed chair speaks but this time it will be extraordinary as Mr. Bernanke is new.

I will weigh in tomorrow and I hope whatever he says doesn’t kill any of my open trades.

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Open Positions update

THOR - able to make a gain today and closed 13% higher on the week with a little help from an upgrade. Currently I am losing on my sold MAR 22.50 option but I am gaining more on my APR 22.50. MACD is coming back to the midline and Fast Stoch has just crossed the slow Stoch.

All of my Feb Credit spreads look as if they will all close in winning position.

For my trades to lose….
AMZN - will have to increase 30% in the next week.
CVTX - by 15%
PLCE - by 15%

$OEX will have to decrease by 3% and break through two levels of support.

So I do feel safe in these trades - CVTX is the only stock I have any concerns over as MACD and Stoch are starting to increase; however the stock will have to break through 27 resistance.

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A flat day

Ok so the market did not really have an up day today, it was relatively flat. So I was wrong about the up day but at least I was right that it was not a down day. The markets are sitting right at support except for the DOW. The Nasdaq did decrease today and is now sitting at support. SO will the markets bounce off support or will we get another down day.

AAPL - broke support on heavier volume today. With MACD and Stoch both still in sell position we can place a BEAR Call Spread. I will give the details tomorrow if the stock continues to decline.

PLCE - surprisingly declined today to the 200 dma and then bounced intraday. The decline is a good sign for my trade, the bounce is not. Still waiting to see what this stock will do since breaking out of the channel it was in.

CMI - continues the rise. This is a woulda, coulda, shoulda (to quote an internet acquaintance of mine) stock. It has broken through resistance at 100 and stayed above it today. I had thought about getting in this stock at $92. With this current break through 100 it is possible to get in now and use 100 as a stop loss. However I feel it might be more profitable to do a BULL Put Spread on this one.

THOR - still hanging in there between 18 and 20. Plenty of time left on this trade. I should be able to decrease my loss some more if this stock maintains its current position or starts to recover.

UNH - could not break through a resistance of 60 and now is starting a decline again. What a disappointment, I had high hopes for this stock this year. We shall see if it bounces off the 57 support. If it does break through this then I would confirm a longer term downtrend and it may come off my HOT list as it will be too unpredictable. Reason - this stock has good fundamentals and is in a downtrend. It will remain on my watchlist and if it hits a bottom and turns around it will come back to the HOT list. We shall see what happens in the next week or two.

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