When markets are overbought it find all kinds of excuse to go down....BUT once market is oversold it DEFIES common wisdom & moves UP.....today was a classic culmination of extreme BEARISH euphoria......that NOTHING is right about this economy???
We have come a long way from financial mess which caused the market slump......
US markets are controlled by hedge funds who plays long & short with ease as retails are always PANICKED into selling or buying in an stampede mode......
S&P 500 tested 200 DMA barely and moved right UP to close @ high of the day...a solid technical reversal......
AH Futures are mixed with mini moves....not material @ all....
AH Gold is UP
AH Oil is UP...everyone is bearish....so a great contrary play!!!
VIX closed @ 29...not predicting FEAR....
Strong stocks included GS,MA,V,AMTD,FXI,GOOG,NDN,ICE,LRCX,KLAC.
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hi Saleem,
As soon as the mark was hit, the buyers came in all the way to the finish. Looks like everyone has the same idea, buy at the absolute lowest point possible, squeezing out the retail. I'm not selling calls yet.
Best Regards
Hi Standards,
I think we go to the high end of the trading range..that is where covered call is a great idea...
Saleem
Saleem
Good morning to all
I still have some room for GE covered calls in my IRA account!
These shares are at 12.61 per share
so I am looking closely at today market to see the yield on $12 calls! Any takers?
PLease consider the stocks of BMY and MRK again mentioned on CNBC as good plays for this market. They also pumped telephones Verizon and AT&T but I would run from them! There is talk of ANTI TRUST action against them!
Hi Madmax,
As you know ..I do not have CNBC in my channel lineup..I only check fast money on internet....as it gives me some idea what 5 second traders are NOT doing.....
BMY MRK are value play....
Saleem
SALEEM
I forget that you do not get that channel
But that is no matter news is news
What is value play? Is that A good thing? BMY and MRK are both being talked up Bloomberg too! Is couod be a good way to buy for the long term, as they are under priced right now! Just my .02 cents worth....
Hi Madmax,
There are many type of investors..some only invest in value like underperforming stocks thus known as value play based on price of stock divided by earning potential..low PE.....
Some like me...trade high BETA....
Saleem
Hi Madmax,
I don't buy anything based on CNBC pumping of the stock. It's usually too little, too late. If everyone knows about it then it is time to sell. Consider the number of people who watch CNBC. We may go higher into expiration. I'm watching the trend.
Best Regards
Hi Standards,
CNBC is like "infomercial" of different stocks...either they are pushing for you to buy or sell..so they can make money from you....these infomercials are great contrary indicator.....
CNBC is too addictive for some ..they dont seem to get enough..they want more???
Saleem
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