Trucharts.com - Markets Update and Stocks of Interest and Covered Call Strategy for BIDU
Markets were in an oscillation mode today and we had several negative and positive readings. But at the end of the day - markets ended down. We shorted UAL today - even though it was up today - our position in BOX stock is doing well (we write covered calls and / or covered puts on our longs/shorts) as needed based on market conditions.
We still expect SP to test 2025 and the Euro to go below par to the USD - our target is 0.90 - 0.95 - currently it is at 1.056 approximately.
We are short AEM and UAL. Stocks long positions are BOX, TWTR, USO, DATA, Z.
Looking to go long BIDU - chart here - www.trucharts.com/stockview.aspx?TICK=BIDU - we like the stock primarily because it looks oversold and the call premium is very good and therefore the short term returns with covered call writing will provide a good return on the investment. Be aware that this a volatile stock.
So let us say you buy 100 shares on margin - for 2 months - margin rates vary but are around 2-4% currently.
The covered call for near the strike price of 205 for APRIL 17 2015 is around $5.00 - so you will collect 500 as premium for one month and then your cost will be around 200. Let us say on April 17th the stock is at 200 and your call expired worthless (205 strike) - you can write the 200 call for May 15th around that time should be around $7 and you collect 700. Your total investment on margin at 50% is $10000 and you collected $1200 as premium on the calls and your cost went down to around $193. BIDU call writing makes lot of sense and therefore we are looking to do this trade.
TruCharts team
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Showing posts with label Buy/Sell Strategy. Show all posts
Showing posts with label Buy/Sell Strategy. Show all posts
March 11, 2015
March 8, 2015
Trucharts.com - Markets, Hot Stocks, Blog week ending 3/6/2015
Trucharts.com Blog week ending 3/06 and Hot Stocks to Watch Week of 3/9
What a jobs report - wow!! - even our numbers were not close enough to the actual numbers. Our estimate for March jobs report was around 230K on the high side and the number came in at 295K and unemployment rate dropped to a respectable 5.5%. We do not expect any slowdown heading into the summer season - the US dollar rallied and gold got crushed - we stated that gold was heading down in our previous posts - and here comes the probability that the Fed will be pushed to raise the Fed funds rate by June - we expect even that if they raise it by 0.25bp - would still be too low to affect the markets. There will likely be a short-term pullback - we indicated in our posts on fb and g+ that the markets looked extended and a pullback to 2050 should be expected. Also Mar 9th will be the 6 year anniversary of the bull market. The markets will be on the watch out for Fed statements going forward and the strength of the US dollar maybe hurting the export driven companies, but is a good sign for the US and the US economy. There should be some concern around job losses related to the oil industry - which we would expect to see happen within the next few months. We heard on the news of layoffs from HP and Ebay. But job hiring scene is still strong in many sectors. Majority of the job growth was in the in the service industry in the March jobs report. With the Fed still staying the course with ZIRP - we expect that the markets will consolidate here with some pullback heading into the Q2 earnings season. Support for the S&P is in the 2050 area.
Check out the videos and articles we posted on our G+ and FB pages.
Market Stats (from finance.yahoo.com) Friday close:
DOW JONES IND: 17856.78 - DOWN -278.94; S&P500: 2071.26 - DOWN -29.78; NASDAQ: 4927.37 - DOWN -55.44
ADVANCERS/DECLINERS: NYSE: 308/1574; (RATIO ~ 1:3) - NASDAQ: 858/1944 (RATIO ~ 1:2)
UP VOL/DOWN VOL (Millions): NYSE: 673/3177 (~1:5); NASDAQ: 541/1308 (~1:3)
We have been short AEM, IBB (has been hurting but is a hedged position), Long ANGI, TWTR, Z, USO, DATA, LLY.
All of pur positions have calls or puts written against the position(s).
Here are stocks we are watching this week: Looking to short RGLD (or buy puts), Short UAL or buy puts and USO looks like it is pointing to lower oil prices - we have covered calls on USO. Here are the charts.
@trucharts; https://www.twitter.com/trucharts
Check out the charts we posted in our blog last week.
Good luck trading - please check our page - Why Trucharts.com at: http://truchartscom.blogspot.com/p/why-is-trucharts.html.
Trucharts Team
March 1, 2015
Trucharts.com - Weekly blog week ending 2/27 - Hot Stocks to Watch
Trucharts.com Blog week ending 2/27/2015 - Markets and Hot Stocks, stocks and thoughts for the coming week
VIX dropping and the complacency is truly remarkable. Just check the chart here for VXX etf still heading down and we expect this to find a bottom and stabilize - the technicals are not pointing to any big move yet in volatility. We are heading into the sixth year of the bull market from the March 2009 bottom - earnings have been reasonable with some surprises and stocks which have beaten the estimates and raised forecasts have been rewarded their investors nicely. Check AVGO and CRM as examples.
VXX chart:
Oil dropped this week and gold stabilized around 1200 - we think gold will vacillate around 1175 - 1250 until there is an actual breakdown. We posted some good videos this week on the Fed's interest rate policy conundrum and how they have put themselves in a corner - and with the current ZIRP, we expect markets to trend higher after another consolidation phase here. A pull back to the 13 day SMA or even the 50d SMA would be a decent pullback. The leadership in stocks is narrowing and the breadth is narrowing also. Here is the chart for SPY (check the technicals weakening RSI and MACD):
Target support is between 208 - 205 (around 2080 and 2050 for S&P500):
We expect oil to head down and try to form a bottom before heading higher into the summer season. Gas prices in California are still high due to some refinery shutdowns, labor strikes. We expect oil prices to stay between 40 - 55.
Greece which got its loan stay/extension - we just call it noise and the Euro is getting crushed. We are in an all out currency war now and we really like the US dollar here - as there is no other currency that is currently safe. This will impact gold prices as the USD heads higher.
Ukraine is in total disaster mode, Venezuela is sinking - Russia us struggling and China is slowing down. Japan is mired in debt and all it can think of doing is cheapen its currency.
Stocks that have triggered short signals are in the airline sector - check the chart here for DAL, UAL and LUV:
Also take a look at the chart for CAT here below:
Stocks on our list for longs are:
Additional stocks we are watching are: LLY, ALTR.
Our long positions with options are in the following stocks: LLY, USO, ANV, DATA, Z, TWTR, ANGI
As we indicated in our blog 2 weeks ago - our call on ALTR was excellent - we locked our profits based on the buy signal generated from our Fast Trading Signal Strategy. Profit was 4.5% and ALTR has hit 37 since our buy call around 34.7.
Check these trading strategies on our stock charts page at: www.trucharts.com/stockview.aspx
Market Stats: (from finance.yahoo.com)
S&P 500: 2,104.50 -6.24 (-0.30%); Dow: 18,132.70 -81.72 (-0.45%); Nasdaq: 4963.53 -24.36 (-0.49%)
Advancers & Decliners
|
|
NYSE
|
AMEX
|
NASDAQ
|
|
Advancing Issues
|
1,614
(50%)
|
228
(57%)
|
1,034
(37%)
|
|
Declining Issues
|
1,530
(47%)
|
157
(39%)
|
1,676
(60%)
|
|
Unchanged Issues
|
93
(3%)
|
18
(4%)
|
91
(3%)
|
|
Total Issues
|
3,237
|
403
|
2,801
|
|
New Highs
|
99
|
6
|
105
|
|
New Lows
|
30
|
6
|
35
|
|
Up Volume
|
1,587,571,140
(45%)
|
87,795,645
(71%)
|
737,990,334
(39%)
|
|
Down Volume
|
1,903,862,936
(54%)
|
34,160,800
(28%)
|
1,151,918,788
(60%)
|
|
Unchanged Volume
|
60,957,743
(2%)
|
999,147
(1%)
|
24,153,883
(1%)
|
|
Total Volume
|
3,552,391,8191
|
122,955,5921
|
1,914,063,0051
|
Check us out on facebook at: https://www.facebook.com/pages/truchartscom/273554162830234
Twitter handle: @trucharts; https://www.twitter.com/trucharts
Good luck trading - please check our page - Why Trucharts.com at: http://truchartscom.blogspot.com/p/why-is-trucharts.html
B Bhatia
Founder/CEO
February 22, 2015
Trucharts.com - Hot stocks to watch and - Blog week ending 2/20/2015
Trucharts.com Blog week ending 2/20/2015 - And Stocks to Watch for the coming week and markets
Well another week and another set of new highs for all the indices - S&P, Dow and NASDAQ (headed to 5000) - We have been saying that what we experienced the week before was a breakout of descending triangle pattern and the markets just moved higher after the breakout. The Eurozone Greek situation is just noise and it is totally irrelevant to the markets in the US. That has been our theme and it has made money for us. Although we are seeing fewer stocks participating in this move up - nevertheless, the markets are heading higher. We expect a pullback to the 13d SMA and we should be mindful of that. We still like certain stocks and we will discuss these below. The Russian issue with Ukraine - just more noise - and Putin is going to keep the West on its toes - while the West is going to keep putting pressure on Russia by driving the price of oil lower - we expect this to be a bottoming process for oil and should last through summer this year. Gold is pulling back as the market moves higher and we are short AEM (www.trucharts.com/stockview.aspx?TICK=AEM) We are long USO and will keep writing covered calls on the USO position.
Our picks from our blog last week did very weel - TWTR, CYBR, USO, LINE - we closed LINE and CYBR this week.
Markets on Friday moved up due to the loan extension granted to Greece for 4 months - and the markets just rocketed higher - even with narrowing breadth/leadership. NASDAQ is being driven by the biotech sector and this weekend SLXP is being bought by Valeant for ~10B.
Next week we expect the Fed to keep the patient theme in their language to the Congress and here is a good article on earnings and news for what will drive the markets next week:
Here are the market stats from Friday close(check the New Highs and New Lows on the NYSE and NASDAQ - lopsided to the New Highs) - means the markets are still seeing a fair number of new highs relative to new lows with market at all time highs - still a bullish sign:
Advances & Declines
NYSE
|
AMEX
|
NASDAQ
| |
Advancing Issues
|
2,143 (66%)
|
206 (51%)
|
1,427 (51%)
|
Declining Issues
|
1,005 (31%)
|
170 (42%)
|
1,263 (45%)
|
Unchanged Issues
|
90 (3%)
|
26 (6%)
|
106 (4%)
|
Total Issues
|
3,238
|
402
|
2,796
|
New Highs
|
164
|
9
|
131
|
New Lows
|
14
|
7
|
31
|
Up Volume
|
2,197,896,660 (67%)
|
58,220,649 (51%)
|
1,081,999,545 (63%)
|
Down Volume
|
1,044,822,426 (32%)
|
54,108,506 (47%)
|
594,106,069 (35%)
|
Unchanged Volume
|
53,196,027 (2%)
|
2,284,090 (2%)
|
32,536,265 (2%)
|
Total Volume
|
3,295,915,1131
|
114,613,2451
|
1,708,641,8791
|
Here are the stocks we will be watching this week and we especially like: KLAC, ALTR, Z, ANGI - check out the weekly charts for Z, ANGI and ALTR here below:
(Check the volume for ANGI) - we want to clearly warn you that these are risky stocks - the charts are for information purposes only. We will be looking to buy these based on our analysis.
Here are some other charts of interest this week:
www.trucharts.com/stockview.aspx?TICK=ALTR (we closed this week for 4.5% profit)
We closed out GM and F short spread for a small loss - we could have stayed short but decided to close these.
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Best of luck Trading.
Trucharts.com Founder/CEO
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