Wang’s Happy Trading

Another crazy week. This time with the market breaking down in the latter part of the week.

Last weekend, in my Market Forecast, I said,
“For the new week, unless there are some “super” positive news (such as the bond insurers coming through with great solution plans), the market looks to be in a tough spot. With Nasdaq closing below 2300, the next immediate support is at 2250, which is only 20 points away. SPX closed only 5 points above the 1325 support level, so, it is not in that much of a better shape. Unless there are positive stimuli early in the week, these levels might find difficulties to sustain this time. For SPX, below 1325, the immediate support is 1300.”

Since there weren’t too many positive news, let alone “super” positive news, the market did not hold the support this time. SPX closed the week below 1300.

Here’s a quick review of what had happened. On Monday, the market was volatile, but closed essentially flat. The metals were strong and held the market up. On Tuesday, the market made a late bounce as rumors about ABK reaching a solution for its plight started circulating. Techs were a little stronger than the broader market. On Wednesday, the market acted a little stronger as the techs continued to lead, while gold and silver reached new heights. On Thursday, the market stumbled as a slew of negative news hit the wires. The market fell below its recent support levels. Friday was another volatile day and the market still could not find strength to fight the big drop from Thursday.

Not a bad trading week, considering what the market did. We even scored a bagger for ourselves!
AEM ($73)
AEMDN, Apr 70 calls, at $6.7, +17.5%

AEM ($74.05)
AEMDN, Apr 70 calls, at $7.2, +132.2% (more out)

BTU ($55.09)
BTUDL, Apr 60 calls, at $2.35, -44%

ATI ($74.15)
ATIDQ, Apr 85 calls, at $1.7, -70.7%

AEM ($70)
AEMDN, Apr 70 calls, at $5, +61.3% (all out)

RIG ($144.5)
RIGDI, Apr 145 calls, at $7.2, +7.4%

CTRP ($62.23)
QCTDL, Apr 60 calls, at $6, +22.4%

The trades left open were:
XAU ($202.77)
XKUCB, March 210 calls, at $3.2 (open)
Friday close: $2.1; unrealized gain/loss: -34.4%

SPWR ($69.4)
QSUDO, Apr 75 calls, at $4.5 (open, nibbling)
Friday close: $1.8; unrealized gain/loss: -60%

RIMM ($98.5)
RULDB, Apr $110 calls, at $4.3 (2x), $11 (3/4) (open, cost basis $6.53)
Friday close: $4.05; unrealized gain/loss: -38%

It’s been a busy weekend for me, and we lost an hour due the Daylight Savings “Springing Forward” time change. I’ll be back later tonight with my Market Forecast.

Happy Sunday!
HappyTrading! ™