Market internals were much stronger than indices close....
UP volume,Advancing stocks,New 52 wk highs were all in the lead...real reversal from recent days.....
Fed statement did not give what traders were hoping for" a clear statement of time that interest rate will remain low... say for 6 months"..which MAY be a good thing.......???
Fed MAY believe that economy is coming along fine..so no need to expand their buying of mortgages to keep interest lower.....
Nasdaq,S&P 500 closed green...which is a confidence booster..while Dow was barely down @ close.....
VIX closed @ 29.05 Down 5%...so no real fear about market direction......
Why do I keep monitoring internals of the markets...because it shows me real strength or weakness ahead of the crowd.....also helps me plan my trades...FA is good but one needs to continuously monitor technicals also.....these days markets are becoming trading markets more so than I have ever seen before......I accept TAPE the way it IS......
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
You are right on. We may be in a trading market for some time to come as the business cycle improves. Slowly people will forget the crash and greed will become vogue again. In the mean time, there will be plenty of opportunities in a range bound market.
Hey Max? Gonna sell GE calls again?
Best Regards
Best Regards
Hi Standards,
Every economist,world bank,OECD,central bank governors are all predicting slow growth from Q4...means interest rates will stay low till Q1.....
Profitability will gradually improve for techs.....
A perfect environment to trade small caps as they are trading in a very narrow range $$$$
Good luck with GE covered write$$$
Saleem
Saleem and Standards
Hello to you
I have been thinking about it are we to soon to write covered calls
I was thinking of seeing if GE can hold $12 that floor gives more money for calls for me as my dollar average is $12.70
thoughts?
Saleem I gotta love yor markets comments-thanks
Hi Madmax,
Thanks for your appreciative feedback.
About covered write....it all depends on how you see stock performing in next 30 days....
Secondly..how you are writing & its rationale....
I have used this strategy in past but write for next month & slightly above strike....FWIW
Saleem
Hi Madmax,
I write covered calls near the last week before expiration and pick an out of the money call. With market trending up I don't want to get called if the stock moves up quickly.
It may not produce a lot of $$ but remember you're collecting dividends from the company too.
Best Regards
madmax_194752@yahoo.comSALEEM and Standards
It appears to me that the
Jul 09 $13 pays (GEWGM.X) 0.14 and
the $12 call pays .45 cents each.
My take would be covered call at $13 paying .14 and above I am looking for a richer payout. SO I have qa few days to wait,
Like by Wednesday of next week if we have a GE move up in price.
Like I have said I am a babe in the woods but learning. I do see the leeps are paying really well.
The housing market in DC is still a very difficule time--to many forclosures hurting us--lots of belt tightning but lots and lots of brand new cars on the road here in DC
Gasoline is above $2.75 and it is 91% here!
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