My Intraday Stock and Option comments for today include a number of stocks I am following. First though I didn’t get up a market comment last night. I was finishing another article. However I posted to my options forum that I felt the mart could see a bounce and that the selling may be a bit overdone at this stage. You have to realize that most investors are optimistic people. They have to be to invest in risky assets like stocks, forex and commodities. But they are also cautious and many still carry with them battle scars from the 2008 – 09 market collapse. You have to be aware that market pundits and those who love to fill their websites with rants are always going to be publishing articles about the end of the world, collapse of the US, another plunge in the stock markets but worse than 2008. You name it, they will write it. Instead it is better to set all that aside and focus on your strategies and the overall market environment you are trading within.
Stock and Option Comment – No Double Market Top
The most important thing to realize is there has still been no double market top. Until there is a confirmation of a double market top and then a pullback which breaks the 200 day moving average I will be committing my capital when there are opportunities. So that’s the mid-term to long-term outlook. My short-term market technical indicators yesterday night showed a market that could possibly bounce. So forget about death crosses, black crosses, even the red cross and stay with profit generating strategies. There will definitely be time to move to a defensive position if the market begins a serious decline.
Stock and Option Comment – IWM Pennies Trade
Last night I released a new strategy that came from some investors in my local investing group. They trade for pennies on IWM and the SPY. The article is in the members section of my website. It can be access from here. I have decided that I will add the IWM trades to my members section and show the trades I am doing using that strategy. The Pennies ETF Strategy seems to have merit and I am using the Williams %R rather than the Ultimate Oscillator as explained in the article. I have done two trades today. I only did 50 option contracts with both, but the returns were excellent despite my commissions rates being higher than explained in the article.
Stock and Option Comment – Has Intel Stock Bottomed?
Intel Stock is showing strength the last two days which begs the questions has it bottomed? The Ultimate Oscillator (red arrows) is advising that the worst was actually earlier this month when the stock fell to $23.00. Since the stock fell below $23.00 down to $22.50 there has been enough buying to prop the stock back up and push out of the oversold conditions. Volume which isn’t on the chart is reasonable but not yet strong enough to tell me that the $23 is going to be breached and become support again. However my Oct $24 puts are not being rolled yet as I want to see if the stock can get back to the mid $23.00 range, possibly around $23.50. Then the roll out of options in Intel will be just perfect for fat put premiums on the roll. As well for those who are worried about being assigned, they would be able to roll their $24 puts down to $23.00 or if they went out further in time, to $22.00 which is a rather sweet spot for the stock and for put sellers as well.
Stock and Option Comment – Microsoft Stock Looking Weak
As explained yesterday I sold puts on Microsoft Stock into January at the $27 strike. Today Microsoft stock continues to look weak. The chart shows that the stock does not have a lot of support even at $29.00 Support is back at $27 to $28. The buying today is a good sign but without solid support and stock technical analysis that shows further weakness in the stock could prevail, put sellers who do not want to own the stock would be well advised to either wait to sell puts or sell further out in time into support levels. Meanwhile for put sellers like me who would own Microsoft Stock if assigned, then the drop below $29 this morning made for some decent Put Selling chances again.
The Ultimate Oscillator shows no overbought condition. The Williams %R shows no overbought condition and Volume shows that sellers have been way out numbering buyers for the past four trading sessions. That has to stop before the stock can turn or even trend sideways.
Stock and Option Comment – Apple Stock
I have used my Shark Trading Options strategy on Apple Stock for a while now. Today I sold my puts which I had bought when the stock rose over $700.00. The stock this morning fell to $660 but the stock technical analysis showed that it could bounce. Well it certainly did and once again the Shark Trading Options strategy was correct in picking the time to sell out my puts and buy call options.
Stock and Option Comment – Walgreens Stock
The last stock I was watching this morning was Walgreens Stock (WAG). The stock has held on nicely for a while now after selling off back in May when analysts everywhere not only downgraded the stock, but even one analyst was looking for the company to fold up within a year. So I guess the demise of Walgreens stock is on hold. Anyway for those who have followed, my Put Selling on Walgreens has done incredibly well. With Walgreens stock I was using my “Walk That Profit Home To Momma” Put Selling strategy and it has paid off handsomely. Kudos to my friend Troy Mills over at his website for bringing Walgreens Stock to my attention last year.
Right now Walgreens Stock as you can see has been overbought for weeks. I am waiting for a pullback to get in there and be Put Selling again.
That is it for the Intraday look for today. I will post closing comments after the market closes. Oh and yes I did do the BMO Stock covered call leap trade yesterday and I will do my best to get it all posted to the members section of the website shortly. Thanks for all the emails on that one.