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: earnings release,technical analysis,stocks market,fundamental analysis

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: options trading, index options trading,online trading,

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: index options trading,technical analysis,stocks market,fundamental analysis

Stepping over 13.000 Nicely !

Stocks opened higher as investors were fueled with some better than expected earnings reports and encouraging economic data.

Boeing opened nearing its 52 week high after exceeding expectations led the Dow today. March durable goods also posted rising 3.4%, which is stronger than expected.

Anazon - AMZN did wonderful today. Its Q1 Profit were doubled and management raised its full year out look. Right on, several analyst upgraded Amazon and the stock really flew today ! Near closing bell AMZN traded as high as 56.32. That's a 25% increase from today opening !
AMZN helped nasdaq to lock higher.

Alcoa Inc. (AA) also posted great earning which helped the Dow to break its tight trading range during mid-day.

The Dow is at all time high and S&P at its 6 1/2 years high both indices continously to post gains. Stocks are also continously posting new high. Bad stocks suddenly turned good, good stocks went to its 52 week whatever high. Even with such conditions, I still call for a sharp pulback soon.

Perhaps the S&P will be pulled to reach its all time high before pullback, or we might see it sooner.

Technorati Tags: earnings release,stocks market,fundamental analysis

Dow inching toward the 13.000 area

The USA Stock Market closed mixed yesterday. One of the most notable is the Dow, which managed to go up by 34.54 points. However it was alarmingly up to 12.989 area before retracing down slightly. Many day trader would speculate the Blue Chip stock here to go up with the Dow to touch the 13.000 area.

Although the S&P, Russell and NASDAQ did a side way move, the Dow didn't seem to fond of a side way move. The Dow slowly wants to touch the 13.000 line. From the last Friday rally, The Dow has been making a NEW HIGH everyday.

Since we are already at overbought position, a pullback is LIKELY to happen (although that does not mean it will CERTAINLY happen). We are on a stage of euphoria here, all bad news are nothing and all good news are wonderful news.

The S&P and Nasdaq didn't seem to move in sync with the Dow this week. Both indices continuously making lower high and lower low.

Technorati Tags: options trading, index options trading,technical analysis