A bit more euphoria

April is the best month for the Dow, average 1.8% since 1950

A bit more euphoria hit the market, led by financial banks like Washington Mutual, which reported strong cash infusions. This led the market back towards our second top again, allowing traders that did hold calls to be profitable.

By following futures this morning it was also possible to see a strong bump up was going to occur, and new buys on puts, per our alert, could all have been made at opening or thereafter at best buy prices.

This is a week without a great amount of economic data to trigger the market, but the first quarter earnings will now become the new fodder for “triggers”. We again believe the market is ripe for downturn, but continue to see trading ranges occur.
The put we now hold as a first buy hedge investment, for a market downturn we think likely. Calls may still have strength, and two way trades are possible.
Many traders reported good profits on the April640P, buying just under $10.00 and selling to $12.50.

Lastly, trader NT wrote yesterday expressing frustration that he was “locking in profits at .50 to 1.00, and often could hit 2.00”. Using this type of formula thinking cautiously take note that profits are profits, and it’s ALWAYS good to at least sell partials when good profits are available.

Trader JK said it best, “Floyd, got $1.00 more on the finals I had on calls, and then made a fast $2500 today on the 640P. Where else can you make $3500.00 in a day, and sit around?”