Wednesday, August 28, 2013

U.S. Stock Market closes Up despite Syrian Fears

U.S. Stock Market closes higher despite news in Syria.  We are in a confusing situation at the moment. It’s not clear whether we have fallen below our upward trend line on the S&P 500 daily cycle, or whether the Syrian turmoil will push markets lower.  I want to wait for this situation to pan out before I'll have a gauge on the short term market direction.  Here's a daily chart of the S&P 500 showing the trend line.

Oil is sharply up today, and I believe we have broken new ground on this trend and expect Oil to continue higher for the next several weeks.
Notice the increase in volume since mid-August.  Looks like there's some buying momentum in the Oil sector.

Gold has also been trending upward the last few weeks, but I’m hesitant to advise buying at this time. I think investors should wait until next week at a minimum to consider entering any new positions. I believe we will have a pull-back day soon where entering would be more desired.
 I'll provide a market update at the end of the week to evaluate where Gold is heading.


Tuesday, April 23, 2013

Buying $GLD GOLD Option Calls - Watching $SPY $DIA $IWM $VXX

I bought $GLD GOLD Option Calls. Watching $SPY, $DIA, $IWM, & $VXX.  The $GLD Calls I bought were May18 2013 $137 Put today for $3.00.  Gold was seeing significant support around the $132 range and started its incline this past Monday.  I've taken a short term position in anticipation that Gold will continue upward as I think the rest of the US Market is heading for a correction.  I religiously watch  $SPY, $DIA, $IWM, & $VXX and am using the fact that these ETFs are approaching new high resistance to justify my GLD Call position.  I will watch GLD closely this week to see how much Gold reacts before exiting. Follow me at @DayTraderDave_


Monday, April 22, 2013

Buying Gold!!! 100 Shares of ABX, Barrick Gold Corp. at $18.00

Buying Gold!!! 100 shares of Barrick Gold Corp, ABX at $18.00.  It’s looking like commodities in general are going to start recovering, especially gold and silver.  I wanted to take a small position in $ABX because I think they will recover with more momentum than $GLD gold ETF.  I’m going to add to my $GLD position once I see a minor pullback.   Gold is attractive at these levels and I want to be ahead of the curve in adding to my position. Follow me on Twitter @DayTraderDave_ and like my Facebook page

Monday, September 17, 2012

Apple (AAPL) Testing the $700 Milestone!

AAPL Testing the $700 milestone! AAPL has been on an aggressive uptrend since mid-May and doesn’t seem to be slowing down.  Today, the $700 mark is being tested, and I imagine once we break through, the stock will continue to climb to the mid $700s.  AAPL impressively sold 2 million iPhone 5 phones within 24 hours of its release.  This past Thursday’s Fed announcement is helping too, giving investors the added confidence to keep the stock market moving higher. 

I have been trading short term Options Contracts on AAPL, SPY, and GLD over the last two months.  The clear upward momentum has made it easy to profit on these option trades.  I imagine we will continue this Bull rally at least until elections in November, and probably until the end of the year.  Investors should watch for any pull backs in AAPL this week to buy on any weakness.  I will post on any potential option trade that presents itself as soon as the opportunity strikes.  This is the time to make some easy money, so let’s take advantage of it together. 

Wednesday, May 23, 2012

Facebook (FB) Signaling a BUY after being Down 26% from IPO

Facebook (FB) drops 26%, $31.00 from its IPO of $38.00 per share this past Friday.  Facebook is a Value Purchase at these levels.  Advise purchasing a small position in FB.  Now FB is on the rebound and “Big Money” is entering the stock!

Since their IPO, FB has been a huge disappointment (Down 26%) to eager investors who pulled the trigger already.  My advice to friends and investors on the popular Facebook stock has been to wait and watch what the stock does for several days after the IPO.  Since there is typically unusual volatility with IPO’s and especially with heightened media coverage on Facebook, I would not have recommended anyone to purchase right away. 

This strategy has proven to be a good one in this case.  The stock has now dropped 26% from its IPO and is signaling a value purchase at these levels.  The stock is seeing support around the $31.00 range and I doubt it would drop below $30.  Now that we are close to these levels, I would advise risk tolerant investors to take a small position in the Social Media company. 

Look at the chart below and see where “Big Money” investors started buying the stock on weakness.


Friday, May 11, 2012

Profiting 50% on Apple (AAPL) Options Trade

Profiting 50% on Apple (AAPL) Options Trade

First off, I apologize for not posting in the last month.  I have been extremely busy at work and unable to put my money to work like I would prefer.  I was however, able to spot a quick trading opportunity in Apple (AAPL) this morning as it has recently been under some selling pressure.  Markets are looking to correct upward in the short term after the major indices have generally closed lower over the past 5 days. 

AAPL opened this morning at $565 and so far has seen a daily high of $574.47.  After the open, all major ETF indices including DIA, SPY, and IWM seemed to be regaining ground at a steep rate and buying opportunities became apparent based on trend direction.  I bought the AAPL 12May19 Call $585 @ $2.10 at 10:00 a.m. and watched AAPL trend upward for nearly an hour.  I set my stop limit at usual 10% trailing loss from the current price.  This options strategy reached a value of $3.50 before correcting, and ultimately stopping my position out at $3.20.  I held this position for 50 minutes and profited 50% on the trade by using simple stop limit strategy.  The important part was to wait and jump into the trade during an obvious strong trend.

I will be covering the markets in more detail over these next several months in more detail.  I am expecting volatility to increase during the Spring/Summer time frame and I'd like to keep my followers up to speed so they can continue to make money.


Tuesday, April 10, 2012

Facebook IPO May 18 on NASDAQ, expected to raise $10 Billion

Facebook IPO expecting to go public on May 18. The company has chosen to go list the IPO under the NASDAQ rather than the NYSE.  Facebook is looking at roughly a 10 day period to market the deal to investors prior to the release date.  Facebook has filed for a $5 Billion dollar offering but is expected to raise close to $10 Billion before going public.  The deal is being led by all the major banks including JPM, GS, BAC, and MS.  Also, Facebook just bought Instagram for $1 Billion dollars cash.  They obviously see a lot of potential in Instagram.  I will be posting on all other updates regarding the Facebook IPO.