As a Happy Holidays present Floyd, Terry, and Jenn would like to offer to all subscribers two bank stocks we think ready to soar over time in 2010.
Normally we would share this only with our Premium Blue Chip Subcribers, but here's our thinking:
We already own WFC (Wells Fargo and Co). Buy more. We don't own JPM (JP Morgan Chase and Co). Buy it now.
Take both positions, which we are buying at bottoms that could go lower and continue to buy to lows of 36.00 on JPM and 22.00 on WFC. When you've made buys if the market drops, or whether you have no need to, continue to add to these CORE positions, and have a 25% (or 20%) trailing stop loss, AFTER the second buy has been made.
These are great banks that will gain from TARP and come out fresh. Floyd's money is in them, and I'm ready to also begin playing puts and calls on both positions as 2010 begins.
Lastly, as an added bonus to all subscribers in "sharing", we're adding a new option recommendation. Coal is not doing well, and we think all bets are off on it. Being contrarian we'll play a long term Call on Arch Coal
Buy OSEAD ACI January 2011 20.00 Call. Pay under $5.00. Buy again at 3.00, range. Average costs and hold for at least 9 months. No stop loss
Wednesday, December 23, 2009
Monday, December 21, 2009
A Shortended Trading Week
This is a shortened trading week because of the Holidays. Trading will be lighter, and portfolios willl be adjusted, so we suspect the potential for two way trades.
We will have limited signals this week because of the low volume, and because our instructions for entry/exit are very specific.
Puts were profitable to 25% on Friday on the downturn, but losses on the call were averaged at 18%, and it was the only trade we could manage all week. That's how low volatility, and how tight the trade range has been.
Alert Update: This same alert holds for Monday through Wednesday, the real trading days of the market. We are closed 12/24 and 12/25 and there will be no alerts.
The alerts Tuesday and Wednesday, because of these market conditions, will merely keep up "updated" on our dual play.
Important Note: The Options Clearing Corporation (CC) has enacted an industry wide initiative known as the Options Symbology Initiative (OSI). The new options symbology will expand the current options series key, commonly referred to the as the OPRA symbol, from a 5 character (OEBLK, as an example) convention to a new key that accommodates up to 22 characters.
This will effect the "names" of the symbols we provide you, and is taking place throughout January, 2010. Please check with your brokerage to understand the new symbols.P
We will have limited signals this week because of the low volume, and because our instructions for entry/exit are very specific.
Puts were profitable to 25% on Friday on the downturn, but losses on the call were averaged at 18%, and it was the only trade we could manage all week. That's how low volatility, and how tight the trade range has been.
Alert Update: This same alert holds for Monday through Wednesday, the real trading days of the market. We are closed 12/24 and 12/25 and there will be no alerts.
The alerts Tuesday and Wednesday, because of these market conditions, will merely keep up "updated" on our dual play.
Important Note: The Options Clearing Corporation (CC) has enacted an industry wide initiative known as the Options Symbology Initiative (OSI). The new options symbology will expand the current options series key, commonly referred to the as the OPRA symbol, from a 5 character (OEBLK, as an example) convention to a new key that accommodates up to 22 characters.
This will effect the "names" of the symbols we provide you, and is taking place throughout January, 2010. Please check with your brokerage to understand the new symbols.P
Saturday, December 19, 2009
A New Initiative from the OCC
The Options Clearing Corporation (OCC) has enacted an industry wide initiative known as the Options Symbology Initiative (OSI). The new options symbology will expand the current options series key, commonly referred to the as the OPRA symbol, from a 5 character (OEBLK, as an example) convention to a new key that accommodates up to 22 characters.
This will affect the "names" of the symbols we provide you, and is taking place throughout January, 2010. Please check with your brokerage to understand the new symbols.
* 80% of your gains are with 20% of your stocks. It’s the size of the gain that matter. We thought we would share this as your fiscal year ends, and you review your holdings, as we are doing in our Blue Chip service.
Yesterday we saw futures show a 62 point decline prior to opening, at 8.37 a.m., and by 3 p.m. we had seen a drop to 10,269, right near our support lines.
XEKMT, our January put, was profitable finally 25 to 35%. We continue to hold the open call through today for stop loss, or break even. No entry was made to our new call trade yesterday, as movement was so light.
Here's the summary: DOLLAR REBOUND CONTINUES AS EURO BREAKS CHART SUPPORT -- US BOND YIELDS JUMP -- RISING DOLLAR THREATENS EMERGING MARKET LEADERSHIP -- S&P 500 MEETS LONG-TERM RESISTANCE NEAR 1120
This will affect the "names" of the symbols we provide you, and is taking place throughout January, 2010. Please check with your brokerage to understand the new symbols.
* 80% of your gains are with 20% of your stocks. It’s the size of the gain that matter. We thought we would share this as your fiscal year ends, and you review your holdings, as we are doing in our Blue Chip service.
Yesterday we saw futures show a 62 point decline prior to opening, at 8.37 a.m., and by 3 p.m. we had seen a drop to 10,269, right near our support lines.
XEKMT, our January put, was profitable finally 25 to 35%. We continue to hold the open call through today for stop loss, or break even. No entry was made to our new call trade yesterday, as movement was so light.
Here's the summary: DOLLAR REBOUND CONTINUES AS EURO BREAKS CHART SUPPORT -- US BOND YIELDS JUMP -- RISING DOLLAR THREATENS EMERGING MARKET LEADERSHIP -- S&P 500 MEETS LONG-TERM RESISTANCE NEAR 1120
Thursday, December 17, 2009
A Hard Decision
It is obviously a hard decision. Is the economy really better, and can the market rise more, or is the FOMC being de-controlled, interest rates will rise, and a second stimulus needed? It was this that kept the market in a 50 point range again until 1.30 p.m, making it impossible to trade.
Yesterday we shared a tip on AOL, a stock we are buying in our Premium Blue Chip Option service (www.bluechipoptions.com), and today we'll share that we sold two positions, 1/3 of our holdings, in two Blue Chip holdings for 39% and 46.06%. The first trade I have worked with subscribers to trade in and out of 8 times profitably in 2009, and we still hold a sizable position for the long term.
The second stock we bought on break out, and it returned 46.-6% in 7 weeks, enough for me to take 1/3 of my profits.
We are "cleaning house" at Blue Chip Options, buying and selling to begin the year.
One of our most recent recommendations, and long term positions, is ExxonMobil. We've owned this for years, and just recommended it as a new buy. A day later XOM bought XTO Energy for 31 billion. There are two very positive situations here:
1. XOM is cash rich in investing in natural gas, and expansion.
2. Buffets recent purchase of 26 billion for a railroad, or Black and Decker, Comcast, Stanley Works: these are all mergers and acquisitions, and a flurry of activity always signals a return to busier days. If recent history is any guide, a rebound in M and A also is evidence the broader economy is going to heal. "Studies of the past two decades show deal making is largely a lagging indicator of economic growth, returning a few quarters after the economy bottoms, and slowly building as the stock market turns up and GDP and consumer spending return".
All good signs for economic growth long term.
Whether we have a Santa Claus Rally, or whether it's over, is yet to be seen. We'll recommend a new call trade tomorrow for a longer term hold, until volume and open interest return.
Important Personal Request from Floyd: In 2008 when our little service won the prestigious top 10 advisory services Readers Choice Award in prestigious Stocks and Commodities Magazine I was thrilled, and had reached a personal goal: to be better than the big guys and get rated.
Then, we won again in 2009. And here's where I need your help: I would love our company of Terry, Jenn, and Floyd to win again and we would appreciate your vote.
Head to : http://technical.traders.com/Products/ballot.asp. To vote you must be a subscriber to Stocks and Commodities Magazine, but any serious trader should be already.
Sign up and vote for us at one of the top 10 Advisory Services in the U..S., built out of self help and working with people off my home computer.
I'd be honored to have your vote.
To all OEX AND BCO Subscribers: Be sure to visit our blog spot today : http://www.bluechipoptions.com/ for several new stock tips
Yesterday we shared a tip on AOL, a stock we are buying in our Premium Blue Chip Option service (www.bluechipoptions.com), and today we'll share that we sold two positions, 1/3 of our holdings, in two Blue Chip holdings for 39% and 46.06%. The first trade I have worked with subscribers to trade in and out of 8 times profitably in 2009, and we still hold a sizable position for the long term.
The second stock we bought on break out, and it returned 46.-6% in 7 weeks, enough for me to take 1/3 of my profits.
We are "cleaning house" at Blue Chip Options, buying and selling to begin the year.
One of our most recent recommendations, and long term positions, is ExxonMobil. We've owned this for years, and just recommended it as a new buy. A day later XOM bought XTO Energy for 31 billion. There are two very positive situations here:
1. XOM is cash rich in investing in natural gas, and expansion.
2. Buffets recent purchase of 26 billion for a railroad, or Black and Decker, Comcast, Stanley Works: these are all mergers and acquisitions, and a flurry of activity always signals a return to busier days. If recent history is any guide, a rebound in M and A also is evidence the broader economy is going to heal. "Studies of the past two decades show deal making is largely a lagging indicator of economic growth, returning a few quarters after the economy bottoms, and slowly building as the stock market turns up and GDP and consumer spending return".
All good signs for economic growth long term.
Whether we have a Santa Claus Rally, or whether it's over, is yet to be seen. We'll recommend a new call trade tomorrow for a longer term hold, until volume and open interest return.
Important Personal Request from Floyd: In 2008 when our little service won the prestigious top 10 advisory services Readers Choice Award in prestigious Stocks and Commodities Magazine I was thrilled, and had reached a personal goal: to be better than the big guys and get rated.
Then, we won again in 2009. And here's where I need your help: I would love our company of Terry, Jenn, and Floyd to win again and we would appreciate your vote.
Head to : http://technical.traders.com/Products/ballot.asp. To vote you must be a subscriber to Stocks and Commodities Magazine, but any serious trader should be already.
Sign up and vote for us at one of the top 10 Advisory Services in the U..S., built out of self help and working with people off my home computer.
I'd be honored to have your vote.
To all OEX AND BCO Subscribers: Be sure to visit our blog spot today : http://www.bluechipoptions.com/ for several new stock tips
Wednesday, December 16, 2009
We Recommend a Buy to AOL
December quadruple witching the Dow has been up 18 of the last 26 years, with strong gains a number of years. It's sad, but this is the only "fact" we have to go on this week, watching the market simply freeze in a trade range as it approaches former resistance at 10,550. With market moves as light as we are seeing, both in volume, and in the "trade range itself" it makes option trading nigh to impossible.
So, rather than lose money, we'll keep our open signals, for those that have entered, and simply wait the market out.
In the meantime, here's two tips worth your subscription. The first takes time to think about:
To catch a tiger you must understand the behavior of goats.
The second is a stock tip we've recently given to our Premium Blue Chip Option subscribers, who pre-bought AOL. Buying under the symbol AOLWI (when in) traders were able to pre-trade the actual split off of this stock.
As a tip, and because the option market is so lousy to trade, here is our suggestion:
*Buy AOL at market in a speculative account. Set a 25% trailing stop loss, and buy the position again anytime it loses 15%. Hold it a minimum of one year.
This is a bit of complicated trading as when you re-buy you must average your cost and set your trailing stop accordingly.
We believe AOL showed fair value at opening. At 26.00 or less the stock is worth it's price, and the atrocities that have been committed by both AOL and Time Warner can long be past.
To think, the original brand of the internet for sale. This stock will become a company, a true name, or will be bought up. We think AOL may become speculative, and will begin watching it for day trading, and highly recommend a buy to AOL.
__________
By 3 pm the market had only moved 50 actual points. The moves started a bit more at that time, but not enough for sell off.
So, rather than lose money, we'll keep our open signals, for those that have entered, and simply wait the market out.
In the meantime, here's two tips worth your subscription. The first takes time to think about:
To catch a tiger you must understand the behavior of goats.
The second is a stock tip we've recently given to our Premium Blue Chip Option subscribers, who pre-bought AOL. Buying under the symbol AOLWI (when in) traders were able to pre-trade the actual split off of this stock.
As a tip, and because the option market is so lousy to trade, here is our suggestion:
*Buy AOL at market in a speculative account. Set a 25% trailing stop loss, and buy the position again anytime it loses 15%. Hold it a minimum of one year.
This is a bit of complicated trading as when you re-buy you must average your cost and set your trailing stop accordingly.
We believe AOL showed fair value at opening. At 26.00 or less the stock is worth it's price, and the atrocities that have been committed by both AOL and Time Warner can long be past.
To think, the original brand of the internet for sale. This stock will become a company, a true name, or will be bought up. We think AOL may become speculative, and will begin watching it for day trading, and highly recommend a buy to AOL.
__________
By 3 pm the market had only moved 50 actual points. The moves started a bit more at that time, but not enough for sell off.
Tuesday, December 15, 2009
Personal Request...
December quadrulple witching week Dow has been up 22 of the last 24 years and 7 straight years recently. HIstory has proved a bit "not too useable" this past year, but it's likely for upside prior to the Christmas holidays.
We did not see that in yestedays trading. By 2 p.m.the market had held at 10,550 repeatedly, with mild whipsaws. Movements this light are too hard for option traders.
We are listing the put as open, and a new signal to the call, as it had no volume.
__________________________
44% of Americans say they would prefer President Bush over Barack Obama.
While scientists overwhelmingly say climate change is a threat, 1 in 3 Americans is not convinced of this.
________________________________
Important Note: The Options Clearing Corporation (OCC) has enacted an industry wide initiative known as the Options Symbology Initiative (OSI). The new options symbology will expand the current options series key, commonly referred to the as the OPRA symbol, from a 5 character (OEBLK, as an example) convention to a new key that accommodates up to 22 characters.
This will effect the "names" of the symbols we provide you, and is taking place throughout January, 2010. Please check with your brokerage to understand the new symbols.
For those traders truly wanting to understand the economy and how we have so much more to do, study page r7 in The Wall Street Journal, December 14th editition:
http://online.wsj.com/article/SB10001424052748704825504574586330960597134.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop
Important Personal Request from Floyd: In 2008 when our little service won the prestigious top 10 advisory services Readers Choice Award in prestigious Stocks and Commodities Magazine I was thrilled, and had reached a personal goal: to be better than the big guys and get rated.
Then, we won again in 2009. And here's where I need your help: I would love our company of Terry, Jenn, and Floyd to win again and we would appreciate your vote.
We did not see that in yestedays trading. By 2 p.m.the market had held at 10,550 repeatedly, with mild whipsaws. Movements this light are too hard for option traders.
We are listing the put as open, and a new signal to the call, as it had no volume.
__________________________
44% of Americans say they would prefer President Bush over Barack Obama.
While scientists overwhelmingly say climate change is a threat, 1 in 3 Americans is not convinced of this.
________________________________
Important Note: The Options Clearing Corporation (OCC) has enacted an industry wide initiative known as the Options Symbology Initiative (OSI). The new options symbology will expand the current options series key, commonly referred to the as the OPRA symbol, from a 5 character (OEBLK, as an example) convention to a new key that accommodates up to 22 characters.
This will effect the "names" of the symbols we provide you, and is taking place throughout January, 2010. Please check with your brokerage to understand the new symbols.
For those traders truly wanting to understand the economy and how we have so much more to do, study page r7 in The Wall Street Journal, December 14th editition:
http://online.wsj.com/article/SB10001424052748704825504574586330960597134.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop
Important Personal Request from Floyd: In 2008 when our little service won the prestigious top 10 advisory services Readers Choice Award in prestigious Stocks and Commodities Magazine I was thrilled, and had reached a personal goal: to be better than the big guys and get rated.
Then, we won again in 2009. And here's where I need your help: I would love our company of Terry, Jenn, and Floyd to win again and we would appreciate your vote.
Monday, December 14, 2009
Light Whipsaw on Friday Again
Friday took the market, in light whipsaw again, to market highs of 10,524. 10,550 is a strong resistance line, and the market has not managed to hold past or beyond it.
Because of the whipsaw we've seen the count, or bell curve balance, is now again at 0, showing no bias, besides our seeing a market that is rising, and the talk of a Santa Claus Rally.
All calls were profitable, and puts were sold at stop loss, for a break even and hard week to trade, because of the moving whipsaw around a 100 point range. Friday is quadruple witching expiry.
We have new Dow projections today, but make note of the similarity to the range we've been suggesting, and hitting, for the past 20 days.
Weaving Straw Baskets-Fifty Steps to Understanding
1) People cannot take in more than 5 tasks/thoughts at one time. Learning to control input is key to knowing when you are at or “over your threshold.” We all have a threshold in which input overcomes us.
2) More could be done in business, and in politics, if simple playground rules “no cheating” were put in place before any “deal” and Cheaters had to pay by doing public service, but that is just a dream.
I want Tom Delay mowing that White House lawn.
3) Life is too short to do business with assholes.
4) Use your time. Have your goals around your values, but be armed to stop believing even what you believe.
5) Be open to the world. Trust no facts. Question authority.
Because of the whipsaw we've seen the count, or bell curve balance, is now again at 0, showing no bias, besides our seeing a market that is rising, and the talk of a Santa Claus Rally.
All calls were profitable, and puts were sold at stop loss, for a break even and hard week to trade, because of the moving whipsaw around a 100 point range. Friday is quadruple witching expiry.
We have new Dow projections today, but make note of the similarity to the range we've been suggesting, and hitting, for the past 20 days.
Weaving Straw Baskets-Fifty Steps to Understanding
1) People cannot take in more than 5 tasks/thoughts at one time. Learning to control input is key to knowing when you are at or “over your threshold.” We all have a threshold in which input overcomes us.
2) More could be done in business, and in politics, if simple playground rules “no cheating” were put in place before any “deal” and Cheaters had to pay by doing public service, but that is just a dream.
I want Tom Delay mowing that White House lawn.
3) Life is too short to do business with assholes.
4) Use your time. Have your goals around your values, but be armed to stop believing even what you believe.
5) Be open to the world. Trust no facts. Question authority.
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