Stock And Option -Intraday Comments For Oct 04 2012 – AAPL, FB, INTC, SPX, IWM

My Intraday comments will be short today. I have done 5 trades in IWM ETF using the Trading For Pennies strategy this morning. One was a loss of $120.00 and 4 earned very big returns. The last was up over $1200.00. The return for today is over $3000.00. Obviously all the work to tweak the Trading For Pennies trades is working out. For members I will have up all the charts etc. Many other members are also posting their results and a lot are better than mine. For members using other platforms like Think Or Swim and having trouble, consider sending me your chart images and hopefully I can assist with suggestions. Don’t forget that with the Trading For Pennies strategy I am using the 1 minute chart, NOT 5 minute. All the indicators and their settings are listed here under RULES and REVISIONS.

Stock and Option – SPX

The market direction call last night was for the index to trend sideways with a bias to up. That trend still remains intact and this morning the Indices are responding well despite the poor news on the economic activity out this morning. For investors worried about October and a market top, take a moment to read my article on how to spot a market top. Watch the 50 day moving average. I know it sounds simple, but I have used it since 1972 and it works very well as an early warning system.

Just two weeks ago the analysts were all in gloom over a “black cross” and then last week the “Dow Theory” indicated to sell. This morning analysts are saying that the Dow Theory still works but it has now had a bit of a move higher so everything is “alright”. How can anyone invest following these types of indicators. I believe the moving averages while they might seem too simple, do hold a lot of credibility as to market sentiment and direction.

Stock and Option – Apple Stock

So what’s up with Apple Stock. Shouldn’t it have been to $1000 by now? Today is another example. The market is moving higher and Apple Stock continues to remain weak. I am using the shark strategy on Apple Stock and I will post more about that later tonight. I have had a few questions on the Shark Strategy and I will answer them in my article this evening. I will post it to the main website so everyone can read. I would be careful selling puts or calls at this point in Apple Stock. Iron Condors, Butterflies or possibly even Verticals would be better than going naked.

Stock and Option – Intel Stock

Intel Stock disappointed this morning when it fell to $22.27. It is getting closer to that support level at $22.00. This marks long-term support in Intel stock and if broken I do believe the stock could quickly fall to $21. That said, I would careful here selling naked calls. I have no trouble with naked puts at $21 or lower for those who do not want to own shares, but the stock could bounce back as it is heavily oversold. If you must sell naked calls, I would consider above $24 and I wouldn’t go out too many months. If the market takes off and decides to make a brand new high, Intel could bounce because so many investors are negative on the stock.

Stock and Option – McDonalds Stock

I was disappointed yesterday to only get a handful of naked puts sold in McDonalds Stock. It closed yesterday at $90.35 and I sold just 5 put contracts out to Dec at $87.50 for $1.58. I had posted to the members section that I was trying to sell the Nov $87.50 for .95 cents so obviously I was dreaming on that one. McDonalds stock remains strong and I would own it at $87.50. I would though keep rolling at that strike to bring in more premium before accepting assignment of shares.

Stock and Option – Facebook Stock

Last for today is Facebook Stock. It continued to defy gravity as it really should be lower. Nonetheless I am reluctant to sell puts and I get asked this a lot. Overall I am reluctant to do any trading in options with Facebook Stock.

Stock and Option Intraday Summary for Oct 4 2012

That’s the Intraday comments for today. Sorry I did not post more end of day yesterday. I am working on two large articles that are taking a lot of time but they are well worth the effort as I think they will help out a lot of members, including my Couch Potato Strategy which I will have in the members section shortly for all those who have little time to spare for their investing efforts. It’s a fun way to invest and enjoy some returns while watching your favorite Youtube or Television video. Take care and enjoy your afternoon. For those doing the Trading For Pennies on the Members Section, remember the rule on overtrading in the chop. Stay away from overtrading. don’t get hooked on the profits being made in the morning and later in the day and try to duplicate them all day long. You are bound to get into some losses. Remember what I said about trading in IWM. No point is having a bunch of winning trades and then wiping them out with one or two losses.