The Market Guys

This week, we look at Potash Corp. (POT). Last month the stock bounced nicely off of a well developed role reversal support level around the 38.50 level and I’m seeing not one, but two, weekly bullish engulfing patterns. My target price is the role reversal resistance line up at the $51 price range. Buying these leap calls should put us […]

This is the first new position of 2012 and my goal is to make the first trade of the year a profitable one. Many times you will hear people say, “as January goes, so goes the year”. This is something that many traders believe so we will need to keep an eye on the market to see how […]

I am happy to say that we had a profitable trading year in 2011 but the best is yet to come in 2012. I expect to to see a lot of ecomonic news next year, which will only add to the volatility in the Market. On top of that, there is no telling how the markets will react […]

We will have one more alert before the end of this year, and it looks like the numbers will look good for 2011. The market has had its “ups and downs” (literally), but we will certainly close this year with strong returns. I can’t help but be optimistic about 2012 as we await the January […]

This Friday marks expiration day for the December option chain. We are currently holding positions in the following companies: Baidu, Inc. (BIDU), SPDR Gold Trust (GLD), Netflix, Inc. (NFLX), Microsoft Corp. (MSFT), International Business Machines (IBM), McDonald’s Corp. (MCD) and the condor spread we legged into for the Diamond Trust Series (DIA). There are two […]

Shown above is a portion of the daily candle chart for McDonald’s Corp (MCD). This stock has been in a well-defined upward trend and has recently pivoted off of a role reversal support level around the $94 price area. Our goal is to sell cash secured puts to collect the premium for the January 97.50 […]

We held out with patience, and it paid off like a charm. IBM is following the technical charts better than expected, and we are now ready to complete the second part of this trade. Selling the at-the-money, front month calls will allow us to take in another credit to our account. This will also help […]

This position we are taking in IBM is a contingent buy (Through the long-term leaps going out to January of 2013). The chart I’m using is showing a closing price of 181.31, which is from yesterday’s close. This morning the stock opened up lower after news that the unemployment numbers are starting to climb again. This, combined with week […]

If you have been following along with my Weekly Market Reports then you will have noticed just how well the markets have been following the technical signals. We have been trading within a well-defined price channel that has allowed us the opportunity to collect option premium from the options we’ve sold against existing positions, and […]

This week, we take a look at Microsoft (MSFT), which is exhibiting a triangle pattern. A symmetrical triangle pattern is indicative of a period of consolidation. The triangle is found when the support line slopes up and the resistance line slopes down. This is also a signal that a breakout is imminent. Keep in mind that […]