Monthly Archives: August 2011

Market Condition: cautiously bullish

Schaeffersresearch.com: although the market has been miserable, there are signs of a market bottom: VIX stayed below 50, hedge fund appears to be buying again, etc.  They even recommend investors to “dip your toes into highly shorted equities that are trading … Continue reading

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Market condition: bearish near term, long term bullish.

Schaeffersresearch.com: the markets now look pretty bearish.  However, there is some hope: VIX is still below 50 (a critical area to watch). Chartadvisor.com: bearish. My take: the markets remain very choppy.  The real question is whether we have hit  the bottom … Continue reading

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Rolling up MCP option due to expire tomorrow.

Along with the global weakness again, MCP dropped  more than 5% this morning.  In one account, I have MCP ($50 strike) expiring tomorrow.  I rolled it up (bought MCP $50 Aug 20 and sold Sept. 17 $50) with a credit … Continue reading

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Adding more BIDU positions, taking advantage of this weakness.

BIDU is showing some weakness due to some negative reports.  BIDU is a good stock with very strong chart pattern.  This weakness is a good chance to add more positions which I did. Bought BIDU and sold calls (strike $135, … Continue reading

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CRM: roll up before earnings report.

CRM will release its earnings report on Aug. 19th (Thursday).  I own CRM.  What should I do? CRM has been trading the $140-150 range prior to this recent downturn.  The call option (part of covered call) that I am short … Continue reading

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5 Bad Attitudes to Avoid

I am a student pilot.  In today’s lesson on Aerodynamic Decision Making (ADM), the textbook described 5 bad attitudes (listed below along with their remedies) that pilots should avoid.  I found these 5 bad attitudes actually apply everywhere in our … Continue reading

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Market Condition:

Schaeffersresearch.com: bullish.  Major indexes held the support levels (SPX above 1100 and 40 month moving average), RUT above 650.  VIX is of special interest.  Since 1996, VIX at its peaks always represented great buying opportunities (Did you hear news reports … Continue reading

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Market Condition: short term (1-2 months) volatile and bearish; long term (>2 months): bullish

ChartAdvisor.com advises investors to be cautious.  It believes there is a chance of near term bounce and the stocks are cheap in long term views.  But the markets will take some time to stabilize. Schaeffersresearch.com: The 2nd part of this post … Continue reading

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Taking advantage of this capitulation: I added more to my LVS and SLW holdings.

Covered call of LVS, option strike 47, exp. Aug 12.  Cost: $44.5 SLW: Cost $34.  Call strike: 36, exp: Aug 12th. Expecting a rebound from such dramatic downfall.

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The current markets are a gold opportunity.

To most average investors, the current markets may be scary.  One word comes to my mind that many investment authors may use to describe the current market condition: “capitulation”.  Capitulation basically described the knee jerk reaction that most average investors … Continue reading

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