Friday, January 9, 2009


LDK looking like a decent breakout move today. I added some Feb 17.5 calls, and may add more if it successfully back-tests the 15.50 resistance.

On this move, 17.50 should be real easy. But, as this resistance has been huge over the past 2 months, I feel like there could be more upside than the two points that the chart suggests. But, I will trade what the market says it wants to do, not what I want it to do. Currently have a stop at 14.95, a little loose due to the whipsaw shakeouts that have been apparent this past week.

Edit: I'd just like to point out that these levels mentioned, the 15.50 resistance and potential first resistance level on a breakout (17.50) correspond to within pennies of fib levels marked from the Election Highs to the November lows. Just shows that fib levels are very useful.

And here's three shorts out of the many I'm looking at, but these look nicer than the others:

RL- Ralph Lauren - Closed right on the support at 41.74. Downside volume is increasing. Short-term target if it breaks could be 38.5.

BBY - Best Buy - Broke below 28.77 on decent volume. Stochs pointing down, might catch initial support at the higher low of 26.

WLP - Wellpoint - Falling out of the rising channel and at the same time failing to overcome the 43.83 resistance. Volume also increasing today with stochs pointing down. A target of 37 looks reasonable. As Brian Shannon from always says, from failed moves come fast moves.

Also, just for fun, CNBC's seemingly bearish front page spells more doom and gloom this week, time to go long? (Red-highlighted-areas are my own editing for consideration) :)

Lastly, I completed my transfer from TradeKing to ThinkOrSwim this past Tuesday, and I approve of TOS- two big thumbs up! The funny thing is that TOS was just acquired this past Thursday by TDAmeritrade... hopefully things don't go downhill for TOS from here. TDAmeritrade's comissions are ridiculous and it'd be sort of lame for me to go from TD Waterhouse -> Merger TDAM -> TradeKing -> TOS -> back to TDAM (TDAmeriSwim?). As such, started trading /NQ futures... I must say, it's pretty addicting as the leverage it gives for just a few point moves makes it very appealing. Also because the account I moved to TOS is not qualified to be a Pattern Day Trader account, so getting in and out of indices isn't a problem with futures. It might just become something I trade much more often... I haven't traded the double ETFs since I moved the account to TOS, so... it's looking to be that way.

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