Last week, I said,
“The market is being tested yet again. Last time the market rallied above the daily MAs was about a month ago, at the end of February. Last time, it got driven down below where the rally had started by the end of that week (2/29). This time, the situation is better. The rally started after the market tested (twice: 3/10 and 3/17) and made a bottom at SPX 1270. It also closed the week much higher than where the rally had started. For the new week, I think the market is in a good position to continue what it started early last week. We’ll again be watching to see if the market can rally above SPX 1340 and Nasdaq 2300. If it does, the important thing this week is for the market to stay above these levels and continue with upwards movements to catch the daily upper BB. We do still need to see some strength back into the financial sector.”
The financial sector jumped on Tuesday and set the market off for the week. The market not only rose above the daily MAs and its nearest resistance levels (SPX 1340; Nasdaq 2300), it also caught up with its daily upper BB.
On Monday, financials made modest gains and so did the market. On Tuesday, LEH raised $4 billion to quash questions about its cash flow. The news sent the financial sector rallying, which in turn sent the broad market jumping. On Wednesday, the market took a breather as the solar stocks took the lead. On Thursday, the market was again flat, but the agriculture shares took off. On Friday, solar stocks jumped again and allowed the market to vent without losing altitude.
We did extremely well this past week and 100% of the closed trades were in the GR$$N:
LDK ($34.5)
LDKFH, June 40 calls, $3, +36.3% (partially out)
LDK ($35.8)
LDKFH, June 40 calls, $3.6, +63.6% (partially out)
RIG ($144.7)
RIGEH, May 140 calls, at $10, +26.6% (partially out)
STP ($47)
STPEH, May 40 calls, at $9, +125% (all out)
GOOG ($473.55)
GOPDI, Apr 480 calls, $15.5, +12.3% (partially out)
GOOG ($477)
GOPDI, Apr 480 calls, at $17.1, +23.9% (all out)
BIDU ($300)
BDUDZ, Apr 300 calls, at $17.5, +34.6% (partially out Out)
BIDU ($298.3)
BDUDZ, Apr 300 calls, at $16.3, +20.2% (all Out)
POT ($167.85)
PYPDN, Apr 170 calls, at $6.3, +16.7%
STP ($44.85)
STPEH, May 40 calls, at $7.4, +85% (partially out)
STP ($46.05)
STPEH, May 40 calls, at $8.3, +107.5% (more out)
GS ($181.23)
GPYEQ, May 185 calls, at $8.1, +25.5%
X ($130)
XDE, Apr 125 calls, at $9.5, +15.8% (partially out)
X ($131)
XDE, Apr 125 calls, at $10.1, +23.1% (all out)
BIDU ($250.5)
BDUDW, APR 270 calls, at $8, +17.6% (more out)
BIDU ($257.5)
BDUDW, APR 270 calls, at $10.5, +54.4% (more out)
BIDU ($260.9)
BDUDW, APR 270 calls, at $11.7, +72% (more out)
BIDU ($266)
BDUDW, APR 270 calls, at $14, +106% (all out)
RIG ($144.2)
RIGEH, rest out at $9.6
There is only 1 trade left open this week:
LVS ($81.68)
LVSEQ, May 85 calls, at $5.1 (open)
Friday close: $4; unrealized gain/loss: -21.6%
Hope you’re enjoying your weekend. I’ll be right back with my Market Forecast.
HappyTrading! ™
Post a Comment