This is due to the weaker Euro and British pound and weakening demand for Crude Oil.
Our only hope now is for Euro to bounce off its low towards 1.500 and this must happen by next week. If not expect the market to go down further.
Thursday, September 4, 2008
Dollar getting too strong
The market has been beaten down today especially companies that have exposure to global markets and anything to do with commodities.
This is due to the weaker Euro and British pound and weakening demand for Crude Oil.
Our only hope now is for Euro to bounce off its low towards 1.500 and this must happen by next week. If not expect the market to go down further.
This is due to the weaker Euro and British pound and weakening demand for Crude Oil.
Our only hope now is for Euro to bounce off its low towards 1.500 and this must happen by next week. If not expect the market to go down further.
Home Depot - HD (04 Sept 2008)
I smell a nice move coming soon for home depot, read some news that this stock is about to be upgraded.....
Technically, there will be heavy resistance at 30. So expect the possibility that this stock might go sideways for a few days.
My bias is this stock will retrace back to about 27.5.
Technically, there will be heavy resistance at 30. So expect the possibility that this stock might go sideways for a few days.
My bias is this stock will retrace back to about 27.5.
Wednesday, September 3, 2008
Portfolio from 500 dollars
Most small traders start off with 2500 dollars in their trading account. They get very excited in the beginning and could end up losing 2000 dollars during their learning stages.
And then they progress to a stage where they stop losing money due to some good lessons learned.
The portfolio on this blog will try to imagine that you have 500 dollars left. Lets see what you can do with this 500 dollars to grow this into 1000 and then 2500...lol.
Once you learn how to do that.... growing that 2500 to 1 million should not be a problem.
And then they progress to a stage where they stop losing money due to some good lessons learned.
The portfolio on this blog will try to imagine that you have 500 dollars left. Lets see what you can do with this 500 dollars to grow this into 1000 and then 2500...lol.
Once you learn how to do that.... growing that 2500 to 1 million should not be a problem.
Commisions can kill you
Many new traders lost more money paying commissions to brokers compared to losing money on a losing trade.
Usually the odds are in your favor if you do your homework before buying any options.
For example, if you pay 15 to enter a trade and 15 to exit a trade. You lose 30 bucks.
So, what if you diversify your portfolio? Say you have 10 option position in different stocks...?
You lose 300 bucks.
The point I am trying to make is....try to FOCUS on making money in LESS TRADES and you will see your investments perform to its peak.
In short, DIVERSIFICATION is a FOOLS game!
Usually the odds are in your favor if you do your homework before buying any options.
For example, if you pay 15 to enter a trade and 15 to exit a trade. You lose 30 bucks.
So, what if you diversify your portfolio? Say you have 10 option position in different stocks...?
You lose 300 bucks.
The point I am trying to make is....try to FOCUS on making money in LESS TRADES and you will see your investments perform to its peak.
In short, DIVERSIFICATION is a FOOLS game!
Tuesday, September 2, 2008
Caution - Trade what you see
By noon, it is pretty obvious that the Transportation sector still have a lot of short sellers.
Do be careful to TRADE WHAT YOU SEE, basicly most of the stocks that I mentioned worked earlier in the day. I hope you took your profits quick enough to beat those "Bears".
It just shows that the strategy of taking profits fast and not holding your positions is still the best approach for now.
Just remember this formula
"When the buys stop buying" - Sell to close your CALLS
"When the sells stop selling" - Sell to close your PUTS.
Do be careful to TRADE WHAT YOU SEE, basicly most of the stocks that I mentioned worked earlier in the day. I hope you took your profits quick enough to beat those "Bears".
It just shows that the strategy of taking profits fast and not holding your positions is still the best approach for now.
Just remember this formula
"When the buys stop buying" - Sell to close your CALLS
"When the sells stop selling" - Sell to close your PUTS.
Taking advantage Oil Price weakness
Oil has declined to 110, expect strong support here before it goes lower to 100. Here are some stocks that I am expecting some decent moves.
FDX - Expect a 6 point move to 88, take half a position off if you want to continue holding for a breakout. The next few resistance levels are expected at 87, 92, 97. Earnings for FDX is at 18 Sept, I wouldn't bet on earnings but I am expecting a small rally prior to earnings.
CNW - A trucker company which uses fuel.... ;). A break above 50 should signify a buy, expect a 5 point move. The options are pretty cheap at the moment. If target is hit, we should be expecting a 300 % profit.
CMP - Expect an 8 point move once it breaks down the support at 66.4. You can take an anticipatory trade when the market opens. Target price 58.9 - 60.
FDX - Expect a 6 point move to 88, take half a position off if you want to continue holding for a breakout. The next few resistance levels are expected at 87, 92, 97. Earnings for FDX is at 18 Sept, I wouldn't bet on earnings but I am expecting a small rally prior to earnings.
CNW - A trucker company which uses fuel.... ;). A break above 50 should signify a buy, expect a 5 point move. The options are pretty cheap at the moment. If target is hit, we should be expecting a 300 % profit.
CMP - Expect an 8 point move once it breaks down the support at 66.4. You can take an anticipatory trade when the market opens. Target price 58.9 - 60.
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