It was a tough week for the market last week. We’ve been watching VIX carefully to see how it handles the support at 16. On Monday, the market started out strong, but, as soon as VIX hit 16, profit-takers came right in; and, we turned on the “caution lights”, as I said, “Being a little more cautious here is good though, in my opinion.” On Tuesday, the market continued to be weak as oil kept on going higher. On Wednesday, the market was strong in the morning as oil went above $130. We cashed out on our oil plays, including an overnight bagger on NOV. But, in the afternoon, as soon as the Fed minutes came out, the market started tanking. On Thursday, the market made a modest recovery, although we still stayed mostly on the sideline in cash. On Friday, the market continued to slide and finished a down week with a little rally at the end of the day, as I said on the member site with about 2 hours left in trading:
HappyTrading
Posted May 23, 2008 at 11:17 am | Permalink (Edit)
market
trying to turn, but, given the up-coming long weekend, people are not so enthusiastic to jump in; what we need is a little squeezing and get the shorts to start to cover; they, too, might not want to hold the positions over the weekend. Given that VIX looks toppy, the market could do better going into the close.
We’ll take a look to see where the market stand in a moment in my weekly Market Forecast.
We finished the week with a mixed bag and not too many trades. I had to cut some losses on Wednesday, as the market started dropping furiously:
BIDU ($259.8)
BPJFP, June 380 calls, at $10, -42.8%
MOS
MTJFF, June 130 calls, at $3.6, -54.4%
MEE
MEEFN, June 70 calls, at $2.8, -28.2%
APA ($146.2)
APAFZ, June 145 calls, at $8, +2.5%
AEM ($72.2)
AEMFM, June 65 calls, at $8.3, +66% (all out)
AEM ($70.5)
AEMFM, June 65 calls, at $7.2, +44% (partially out)
UPL ($90.82)
UPLFQ, June 85 calls, at $7.7, +24%
ISRG ($307.86)
AXVFB, June 320, at $9, +25% (partially out)
Considering how the market was, the results this week were still pretty good. The trades left open were:
STP ($47.4)
STPFI, June 45 calls, at $4.6 (open)
Friday close: $4.2; unrealized gain/loss: -8.7%
ISRG ($304.3)
AXVFB, June 320, at $7.2 (open, partially out)
Friday close: $2.4; unrealized gain/loss: -66.7%
Hope you’ve had a fun and resting long weekend. We’ll be right back with my Market Forecast.
Happy Memorial Day and HappyTrading! ™
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