Wednesday, May 2, 2007

Cover my lost, as short is being squeezed

I decided to cover my lost earlier today. Market is not moving as I expected them to.
My trades were covered for $3, that's around 19% loss.

I will stay in sideline until another signal is yielded

Tuesday, May 1, 2007

Good news aren't that good anymore

Here we are kicking the first day of May with mixed market.

Market seems indecisive today, whether it will agree with yesterday conclusion to continue a HEALTHY, NECESSARY pullback to 12.990 area or to form a rising stairs to another record breaking high.

The Dow is up around 11 points now, while the Nasdaq down 6 points and the S&P down 0.71 points.

March pending home sales has reported a 4.9% decline in home sales also credit some of the concerns that investor have.

More and more good news are not that good anymore. For example Procter and Gamble posted an increase in profit but they lowered outlook for the next fiscal year, with $0.74 EPS vs estimates $0.74. Shares of PG are down around 2.3% right now.
VMC also has been trading lower as much as 5% after the bell right now. This conforms their tanking yesterday during after hours.

"Big Uncle" Tom Bernanke gave a speech on free trade earlier today. He maintained his vision that US is not interested in protectionist policies. However there were no other comments about the economic outlook, or Fed policy. Therefore market had little regard of his speech.

Looks like the old wall street saying "go away in May" is reflected in this mid day of first May.

Technorati Tags: ,,,

My latest trade !

In my observation, the market is due for a pullback following yesterday decline.
Hence I entered a position to take advantage of the pullback.

I just bought OEX .OEYQN OEX May, 2007 670 put for $3.6.
My target is that the DOW will pullback to 12.990 - 13.000 area.

That's around 73 points move.

Let's see if my stock pick yields another profit this time.

Technorati Tags: , ,,

Continuation of bear slaughtering ?

Will today brings another continuation of bear slaughtering ?
It's not likely so, all the signals are pointing toward another pullback today.
However let's not jump before it's sure. We have ISM index number and pending home sales number due at 10.00 AM and after the close we have truck sales number due.

Should a pullback happen, I expect the dow to test around12.890 level during intraday. Judging from the recent rise to 13.162, the dow might retrace near 12.990 instead of 12.890.

The asian market today hints a pullback also, the Hang Seng index are down around 1% while the Nikkei down around 0.7%.

I have a couple of potential plays today, some of them are in the health and electronics sectors. I will post them once I have entered them later in the day.

Technorati Tags: ,,,