Week 11 of 2011 started off with a little March madness, as the stock market took an early morning dive, and despite a rally attempt in the afternoon: failed to clear the 50 day moving average at 1302: Today makes three trading days in a row that we’ve been below the 50, a line that [...]
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A little perspective as the market had a bit of a rough week. Ten weeks in to 2011 and SPY has five green bars and five red ones on its weekly candlestick chart. The S&P 500 now at 1304 remains up a little over 3 1/2 percent for the year. Not too bad overall, [...] The mini-cup-with handle formation I noted in Cost Plus has indeed resolved to the upside, again on good earning news: CPWM remains a nice little stock to have in your portfolio for when the economy starts to improve. With the S & P 500 descending to 1300 this morning (a level right above its 50 day moving average), and then battling to stay there: and the VIX temporarily spiking up near 22: I got what I was looking for and I took the opportunity to close out my open positions in VIX options. [...] Looking at just today’s action, the S & P 500 definitely seems to have taken on a different personality from what we saw from December 1st into February: The increases aren’t coming as easily anymore, as the inability to get through the resistance at 1322 shows. Tomorrow, of course, could be a radically different story, [...] A week that has the biggest up day since December 1st, plus a jobs report trade, must have ignited Wall Street with fireworks, right? Well, not of you look at the weekly SPY chart: We ended up almost exactly where we began. Maybe a roller coaster ride along the way, but really no net gain [...] Since returning from Tampa, I’ve decided to buy some more time with my conviction that a rise in the VIX is imminent. So I dumped my March $22.50 calls for a break-even trade as soon as I got back, and today I cashed in the April $20 calls for a modest $500 profit. There is [...] |
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