Today saw another small gainer for the indices, with no news or slightly negative news. I urge caution at these levels. The bias and technicals remain in favor of the longs, put option volumes confirm that traders are hedging and not overly confident that the stock markets can go straight up. The fact that we are making modest gains is encouraging, though. What you should look for on the index charts, is to see if we fail to make a new high with out breaking the first major support level already established below that high. In other words, if we make a lower high, then the previous support level is taken out, "look out below" could turn out to be appropriate advice.
I haven't added any new plays today. As always, read my previous posts for good advice/ideas.
Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Thursday, August 27, 2009
Sunday, August 16, 2009
Trading and Investing strategies for Aug-Dec 2009
August 16, 2009
Technical indicators remain bullish, but there is much bearish sentiment out there.
For investors, it may be a good idea to buy blue chips and hedge the position. Personally, I like to sell calls against my shares, and at this point in time, buying puts with the collected premiums. Look for the leap options, those with the most time left until expiration. Some of you may prefer to purchase bear market etf's, I like the leap puts.
For those of you expecting a sell off, use bear market etf's with caution. If the trade doesn't go your way, get out pretty close to where you got in. You can always take another shot at it from a higher price.
The stocks Im looking at right now are a handfull that held up well during the panic last fall. MCD, KO, PEP are my three favorites. Study the price charts and you will see what Im talking about. These also pay good dividends. The goal is to accumalate as many shares as you can, and grow your dividend check (they pay quarterly).
Normally when I sell calls I use the premium to add shares, as I do when dividends are paid.
For shorter term plays, I use stock picking software. The program scans the technical information that I normally look for, and saves me time. I then go through the picks generated and study the charts for entry and exit points. This software has helped me identify more opportunities with less time spent hunting for picks. It works great as long as you do your own due dilligence. You can learn more about this artificial intelligence, as well as get answers about trading and investing by e-mailing me at lmrtrader@gmail.com
Until next time, I wish you luck with your trading!
Technical indicators remain bullish, but there is much bearish sentiment out there.
For investors, it may be a good idea to buy blue chips and hedge the position. Personally, I like to sell calls against my shares, and at this point in time, buying puts with the collected premiums. Look for the leap options, those with the most time left until expiration. Some of you may prefer to purchase bear market etf's, I like the leap puts.
For those of you expecting a sell off, use bear market etf's with caution. If the trade doesn't go your way, get out pretty close to where you got in. You can always take another shot at it from a higher price.
The stocks Im looking at right now are a handfull that held up well during the panic last fall. MCD, KO, PEP are my three favorites. Study the price charts and you will see what Im talking about. These also pay good dividends. The goal is to accumalate as many shares as you can, and grow your dividend check (they pay quarterly).
Normally when I sell calls I use the premium to add shares, as I do when dividends are paid.
For shorter term plays, I use stock picking software. The program scans the technical information that I normally look for, and saves me time. I then go through the picks generated and study the charts for entry and exit points. This software has helped me identify more opportunities with less time spent hunting for picks. It works great as long as you do your own due dilligence. You can learn more about this artificial intelligence, as well as get answers about trading and investing by e-mailing me at lmrtrader@gmail.com
Until next time, I wish you luck with your trading!
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