Stock And Option -Intraday Comments For Oct 19 2012 – SPX, GE, MSFT, GOOG, APPL, MCD

To start off the stock and option Intraday comments for today I have to get right to it as I am busy trading today as well. First off my market timing technical indicators did not see today’s selling. At one point the Dow was getting down enough that I thought it might wipe out the two days of big gains earlier in the week.

Stock and Option – Google Stock

The impetus of course was the terrible earnings reports. Google started all the trouble yesterday with their blunder on their earnings release and then the stop in trading which truly was not just a mistake but pointless. The stock continues to pull back today. The biggest issue I saw in the earnings was the cost per click is up substantially and they are not gaining control of the hand-held, tablet per click market.

I have a Google stock option trade which I am reviewing and trying to decide whether to enter today or wait until next week. I will probably wait.

Stock and Option – GE Stock

Earnings again was the problem as GE Stock is down more than 2 percent. Those December $20 naked puts are starting to look interesting.GE Stock has failed to recover from the 2008 to 2009 bear market. This does not bode well for the stock going into the next bear market so caution is definitely warranted for GE Stock.

Stock and Option – Microsoft Stock

Microsoft Stock is continuing its slide today down more than 2.5%. It looks like my Oct $28 puts though will expire worthless. I have rolled my put ladder forward, pushing the $28 naked puts out and down further as I do believe there is more downside left to Microsoft Stock.

Stock and Option – SPX & SPY

My market direction call for a grind higher may now be in jeopardy and today I have done one spectacular trade on the SPY Puts which I will post shortly. While I posted last night that you never know what to expect on options expiration , particularly in October, I did not see this selloff in the cards. Google’s earnings should have been the warning though. But then this is why I do options. While my outlook was for a grind higher, I still know better than to bet against the day’s trend. I stepped in and did 1 trade on the SPY and I have done 1 trade on the IWM Trading For Pennies Strategy which also was very good.

Stock and Option – IWM ETF – Trading For Pennies Strategy

I have done 1 trade this morning in the IWM ETF Trading For Pennies Strategy. However I would caution investors that as per my strategy article and subsequent articles, sometimes the best trade is to stay with the trend. The trend today is down and I have no interest in trying to time calls.

Stock and Option – Apple Stock

Another enormous drag on the market is Apple Stock. The NASDAQ is reeling under the pressure of these big tech companies, Apple, Google, Intel and Microsoft. Apple Stock looks like it is reaching a classic bear selloff. My use of the shark strategy has stayed true to form and so far it has predicted each trend, up and down.

Stock and Option – MCD Stock

I will be entering Put Selling on McDonalds stock either today or next week as the stock is definitely under pressure and could see some retrenchment from these levels.

Stock and Option – Intraday Comments Summary

My apologies for the shorter comments but today is a great day for trading and I do not want to miss out on opportunities. I will try to post throughout today.