What a great start to the week as fears over the 'Fiscal Cliff' turned into hope for a resolution. Oversold stocks flew, led by AAPL. There were quite a few in the chatroom who nailed some calls in the morning, and sold them up 100-200%. We are now solidly over the 200dma on the SPY, a line in the sand for me. I still think we head to new highs sometime in the next few months, and will play accordingly.
There were some nice earnings after hours with Vinnybotz from the chatroom nailing KKD, and others playing QIHU for the big beat. This morning DSW smashed earnings, while BBY and HPQ missed and are down sharply. Futures are flat to green and I would think we melt higher today.
What I am watching today:
| Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
| CRM | CALL | 165 | NOV (WKLY) | 0.40 | 0.35 |
| CRM | CALL | 170 | NOV (WKLY) | 0.14 | 0.14 |
| DSW | CALL | 70 | DEC | 0.49 | 0.45 |
| DSW | CALL | 75 | DEC | 0.14 | 0.10 |
| CAT | CALL | 85 | NOV (WKLY) | 0.22 | 0.22 |
Will try for some lottos with CRM. Been saying CRM is a $200 stock for over a year, maybe now it starts heading there. DSW smashed earnings and still shows great growth. DSW should head to new highs over $69 so lotto DEC calls maybe worth a shot. Still have CAT on the list for some $85 calls, and think she breaks if we are green today. 85s only .22.
Still holding BPT 85s and March 90s, like for the continued bounce. Also have NFLX and SINA.
Lets have another great day. Dont forget the class this afternoon : https://www.optionmillionaires.com/2012/free-webinar-open-to-all-members-guests-candlestick-analysis-with-chris-d/
- Jimmybob
Today's recap AAPL, SPY, CAT, USO, LVS
Stocks up almost 1.75% today. Some great option trades out there.
On Sunday night I posted my outlook for the week, most notably:
'We have the SPY holding above key levels, and look at some of the indicators. They are just starting to turn. We could easiliy see a test of the highs or a break in the next few weeks. The bulls are not going away. My target this week is SPY $141.50. "
Today SPY hit $141.66 and then faded, .16 over my target. The fade turned into a sell-off late and SPY closed in the mid $140's. I'm not concerned at this juncture about another pull back. We are well above the 50dma, the RSI has plenty of room to go higher. A beak of $140 would draw my attention, further weakness could be signalling a lower high in the SPY. But we did hit a higher high on the DOW today. The bearish case from here is mixed at best. I have been playing it light lately, cutting my losses, locking in my profits.
You could see that with my NFLX trade I posted in chat today. I bought 10 of the $85 calls for $.53. I sold them 45 minutes later for $.78.
What I will be watching and possibly trading tomorrow.
Everyone on WallStreet has been fore-telling the grand "Santa Clause" rally. The one that will ensure huge bonuses and after work lapdances. That rally seemed to be in jeopardy to start the week, as the market battled with the 1200 mark on the S&P. But three days later, the S&P has surged more then 4% from its Monday lows, and now sits above the 200 day moving average. A great sign for those looking for a continued move higher over the next few days.
Why?
Well, one could argue that the data coming out for the US economy continues to be somewhat promising. I actually think it doesn't mean anything. Folks will continue to shrug off the numbers and push the tape higher. It will only provide a better opportunity to go short sometime in 2012. For now, follow the big boys and look at some of the plays that have been beaten down on the Europe worries as well as those looking to break into new all-time high levels.
Plays I like into next week are Visa(V), Mastercard(MA), Priceline(PCLN), Caterpiller(CAT), Google(GOOG),Amazon(AMZN), and NKE(Nike).
