All posts by jimmybob

Futures up, Dollar up, and Curious George comes out of his tree…

So there has been a few things a trader could count on each trading day... If the market was up, the US Dollar was down.. and vice versa. So here it is Sunday night(monday Morning), and for the first time in recent memory, the futures are up a decent amount (.5%+), and the US Dollar is up nearly as much (. 47%).

It was enough to get Curious George out of his tree.

 

It has been a risk on, risk off environment. The US Dollar has been a benefactor of the Risk-off trade, as traders have flocked to the greenback as a safe haven as equities sold off. With Wednesdays coordination of world banks to increase liquidity, the risk on trade was given the green light. Equities had their best day since 2009, and the US Dollar dropped.

 

Is the US Dollar ready to have a mind of its own, and continue it's ascension to $80? Time will tell, but tonights action has me confused, and curious george... well.... Curious...

A successful trader has many tools to help them tread the equity "waters", and the forex is one of them. Tonights inverese correlation has me confused. Lets see how the market is at open tomorrow.

 

 

Oops we did it again…

LNKD continued its ascent today, and shows how stocks can continue defy it's own fundamentals. We alerted the $67.50 Dec weekly calls @.40, on the morning pullback. LNKD then continued to surge late in the day to a high of $68.25. Our $67.50 calls went for $1.30, a nice 250% gain.

11:54 AM : Like LNKD $67.50 calls right now. Stock squeezed about 1 pm yesterday, so expecting a move up here soon.Currently .30 x .40... Very risky as they expire tomorrow, but reward can be great as well.

LNKD

LNKD – $100 into $1025 in 7 hours

Linkedin Corporation has been in sell-off mode since it's recent earnings and announcements of a secondary offering. The once high flying stock, had fallen to $57 on Monday and things looked bleak, as the lock up period for insiders had ended on Nov 21st. Yet these are the type of stocks that can provide great trading opportunities. The stock opened in the low 60's , and held that range until 1:30 pm, when the stock soared amongst strong buying pressure, which was surely coupled with those scrambling to cover their short positions. LNKD closed at 65.93, up 11%.

 

We alerted LNKD $65 weekly calls @ .20 in the morning, and those same calls closed asking $2.05.

LNKD
LNKD

 

It is quite possible that LNKD continues its ascent tomorrow. Time will tell...

 

LNKD 11-30
LNKD 11-30

FSLR and the Solars

I recently wrote about the solars and the fate of those that are publicly traded companies. It is quite funny and interesting to see what happens in sectors like these, where the charts can paint one picture, but not the entire story. To one, FSLR and other solars are oversold, and a buying opportunity. Heck, the buyout rumors have begun. ( http://www.itbusinessnet.com/article/First-Solar-takeover-prospects-more-likely-given-sell-off-says-Maxim-1767647 )

But in the end, the folks that make money off of plays like these, are the ones who see the big picture. Who stick to their guns on the short squeezes that happen, and lock in profits on the way down.

FSLR will be a sub $30 stock in the VERY neat term. But it will succumb to the occasional pop, which allows you to add to your put position.

Take a look at the chart below. Remember... the trend is your friend!

fslr
fslr