Market Finally Upsided

[Arnold Kameda]

The market finally had a huge upside day. Hope none of you had open PUT options going on. Since I was anticipating this rally, but didn't know what day (it took longer than I thought), I've been closing out any PUT options at the end of each trading day.

Good day for most regular stocks and CALLS.  But to catch today's action with new trades, you had to be up at the 3:30am opening bell; I was still dreaming. Fortunately I had some positions in high quality stocks that caught some of it but didn't have any new CALL options going on, which could have really made some serious $.  We'll see if this momentum will carry to tomorrow.  Any of you venture to guess? Times like these, its good to learn some non-directional strategies.

See some of you at lunch today.

Arn

[Cori Pepe]

Arnold,
Did you stay in any calls for the last three of four days since this
post? Looking at DELL, it headed that way also. Has anyone used the
OCO option? Are trainer, Kris Nyden spoke about using this type of
order. have to review my notes.
I just looked to see if Darlene had any classes coming up on the LEAPS
series and she didn't. She had the q's and Recession Proof and a
Falling Cash one. So the other thought was with the LEAPS I also got
her FALLING STOCKS set, which has only two disks in it. Maybe we
should look at that one first?
Cori

[Arnold Kameda]

Hi Cori and company,

Sorry I'm late in replying to your email; been tied up a bit these past few days. To answer your questions about Calls; no I haven't stayed in them the past 3-4 trading days. Because of the volatility of the market, I haven't been holding onto PUT & CALL trades past a day or two at the most. Today, we had a nice bump-up, so it would have been good to hold onto CALLs. I was actually expecting the market to go negative today based upon yesterday's results (how fast it trended downwards yesterday).

However, besides options, I do purchase stocks that I hold onto longer. There's a few good securities that have had nice upside lately are way above their 30-day moving avg.. I'm not recommending these to anyone as one must do your own due diligence, but you will hear traders talk about them because they've had nice technical patterns lately. For these hotter stocks, one has to be careful about pull-back. I'm just mentioning these to promote idea exchange. They are:

Asia Holdings (ASIA) Chinese Telecom Company: 14.5% bump up today
BIDU (BIDU) Chinese "Google" Company 8.71% bump up today
Autozone (AZO) 1.86% Up today

Also US Oil Fund (USO) holds some promise as it just broke out of it's 30-day moving avg a few days ago and has been slowing trending up. Today it was up 4%.

I can't always closely monitor my trades, that's why I sometimes buy the stock instead of the fast-moving options. If I did this full-time, than I'd be more prone to buying the options on the securities that support a strong up or downward movement (using both fundamental & technical analysis). A lot of seasoned traders only rely on techical analysis.

There are also some interesting ETF's that are a good alternative to PUT options. These ETF's go opposite the market segment they represents. It their market segment goes down, they go up, and visa versa. However, they trade like stocks. I had bought one this early morning called BGZ (Big Cap Bear 3X, which moves opposite the Russel 1000 ETF index), only to dump it when it, when the market trended up. There's also one called DXD (Ultra Short Dow 30) and TZA (Small Cap Bear).  These guys move fast like options, so buyer beware!

OCO Orders: Yes, I've used them before to automate getting into or out of S&P Straddle trades, where I would either buy or sell the PUT or the CALL depending upon certain conditions.  Conditional orders are good for people who might not be able to trade during prime time, but want to be able to execute orders.

LEAPS: Leaps might be good to look into for companies that you forsee will have a strong rebound next year (such as financial companies, real estate, etc.).  Darlene's "Falling Stocks" set also sound interesting. Although some analyst believe we are near the "bottom", I believe although we may slowly recover, we will continue to see both upward & downward volatility.

Thanks!
Arnold

--
I am a "Pro-Active Investor". I personally and actively steward the financial assets provided to me by our Father and do not wish to rely on professional money managers or the government to support me in my twilight years.

Preserve our Earth and its resources; it is the only planet that we and our children and future generations can live on.

Arnold K. Kameda

[Donald Garwood]

when are we meeting again?

 

"Slick"

On Sun, Mar 15, 2009 at 11:40 PM, Cori Pepe <cori...@hotmail.com> wrote:

[Arnold Kameda]

I'm up for meeting again during weekday lunchtimes, except Mondays. Al indicated he can get us a room with internet so a lot of the meeting time will depend on his availability. Al, what's your schedule looking like?

Thanks,
Arnold