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We had another great week last week, including a nearly +200% trade on FSLR and catching the overnight bagger on APOL:
10:55 | FSLR ($161.50) Sold to Close HJQAL Jan 160 calls, at $8.00 +11%
07:58 | AEM ($49.53) Sold to Close AEMAJ Jan 50 calls, at $2.15 -4%
07:46 | APOL ($86.48) Sold to Close OAQAP Jan 80 calls, at $7.30 +103%
07:36 | SPWRA ($39.10) Sold to Close QSUAH Jan 40 calls, at $1.95 -46%
07:30 | APOL ($85.50) Sold to Close OAQAP Jan 80 calls, at $6.70 +86%
12:26 | QCOM ($37.28) Sold to Close AAOAG Jan 35 calls, at $2.53 +7%
10:53 | FSLR ($163.00) Sold to Close HJQAL Jan 160 calls, at $11.60 +1%
10:05 | FSLR ($161.00) Sold to Close QHBAH Jan 140 calls, at $24.00 +193%
09:54 | Sold POT at $82.50 +9%
09:28 | TLT ($114.20) Sold to Close TTJMP Jan 120 put, at $6.50 +67%
09:13 | FSLR ($158.80) Sold to Close QHBAH Jan 140 calls, at $22.00 +168%
Because the market landscape has changed dramatically, I have been modifying my trading strategies. To say the least, the fast and furious volatility of late 2007 was not an easy market environment. Taking the last 2 weeks of 2007 off and reassessing the way that I trade is now seeing definite benefits. What I'm doing differently now is have much, much more patience and not to do big trades everyday. Since the market has been trading in a tight range, waiting for the right opportunities to present themselves has been working quite well. Not trading everyday and keeping lots of cash have also helped to calm the nerves so that I can see things more clearly. I will continue to modify trading strategies to fit the market's moods. The goal is to profit from the market's weakness. After all, we are still in a bear market and most people are expecting the bottom to be tested.
Last weekend, I wrote:
"For the new week, the market certainly has some bullish momentum behind it now. After 3 days of straight gains, the intraday charts of the major market indices seem a bit topped out. So, we'll have to be a little careful early in the week. The market may need to breathe a little. It does look like many sectors are ready to go higher though, and, the market itself has a lot of room to go up."
The bullish momentum carried the market through Tuesday, and we locked in on some profits. On Wednesday, INTC and oil finally gave the market the cue to pull back. But, the bullish momentum was so strong that the market attempted to go higher on Thursday. Friday's job report proved to be too much for the market to handle and it finally gave in.
For the week, the Dow was down 435.51 points; SPX lost 41.45 points; Nasdaq fell 60.62 points! Just two days of big drops have pushed the market on defensive again. Let's see where the market stands:
SPX
On Friday, SPX lost 19.38 points to close at 890.35, below 900. It rested just above its 30-day MA. The MACD was lower.
Nasdaq
Nasdaq fell 45.42 points to close at 1571.59, below 1600. It closed just above its 20-day MA. The MACD slid.
The market is now again at support. Breaking blow the daily MAs could easily push the market lower, and perhaps to test the Nov 2007 bottom. VIX has risen back above 40 and could test the resistance at 44-45 again.
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