08/03/2012 Live Update

[Al_Dente]

MIYAGI
yr facecrook is up 9%

[MrMiyagi]

MIYAGI
yr facecrook is up 9%

MY Facecrook? How is this crap mine? I don't even have a FB page!

[TraderGirl]

Monday night, Knight has to pay GS $440 mil. CNBC to have Co-founder of Knight (left business) on at 1:23. Should be interesting.

Been asleep at the wheel, kids go back to school soon, so very busy lately....

Two sets of turn data,
1)Weds and Thurs (Weds turned down, Thursday turned up)
2) There was also a lunar turn of Aug 1/2 (**stars), so we turned up on Aug 2

Next Lunar turn
Aug 6/7 (*** stars)

So, next week we probably get negative data or news from somewhere Mon/Tues....maybe this is it Mr. X???

[gvg]

I'm using unsettled funds.

Get margin

I second that margin call. This way you can write options too.

MrMiyagi,
I often read you write calls, when you have some time, can you elaborate your strategy. I generally but calls/puts and i guess i am afraid to write calls as the potential damage could be very high in case of a gap up gap down. Generally what are the data points you look before writing calls? I am interested because some of the times, the premiums on these 3X ETFs are tempting to write calls. Thanks anyway

[usctrojan99]

With little news next week (unless a surprise), I wouldn't be surprised to see a melt up to 1420 creating the top.

[xfradnex]

Here we are; do we go higher? http://www.youtube.com/watch?v=_a8yACd_ ... re=related

[Petsamo]

I went into UAL at 17.99, 80 shares only. I can't sell till Wed, so it has until then to crash & burn.

watch airline stocks with the price of oil. Oil goes up, airline goes down Most of the time. Stockchart has index $DJUSAIR, only track of Airline .
http://stockcharts.com/h-sc/ui?s=$DJUSA ... &cmd=print
Thanks. I'm using the hope strategy that UAL will bounce.

Why can't you sell?

I'm using unsettled funds.

This is UAL chart ,MACD is exteremly important to me. Hope strategy! It's between S1 and P right now. Hope is not a bad thing.

http://stockcharts.com/h-sc/ui?s=UAL&p= ... &cmd=print

Maybe something's going on at UAL, that they're dumping it.
In the chart below, FAA is an airline ETF. UAL divided by FAA.
.
I know, I'm playing with fire.

[victorm]

me the same

MIYAGI
yr facecrook is up 9%

MY Facecrook? How is this crap mine? I don't even have a FB page!

[TraderGirl]

I'm using unsettled funds.

Get margin

The fact that I can't sell is not necessarily a bad thing. It may be much higher 3 days from now than a few hours after buying. I have margin on some accounts but I don't use it.

You don't have to use the margin and leverage the account, just gives you additional funds that are "settled" cash funds, so you you have more flexibility in selling when you want rather than waiting for funds to settle.....

[xfradnex]

Monday night, Knight has to pay GS $440 mil. CNBC to have Co-founder of Knight (left business) on at 1:23. Should be interesting.

Been asleep at the wheel, kids go back to school soon, so very busy lately....

Two sets of turn data,
1)Weds and Thurs (Weds turned down, Thursday turned up)
2) There was also a lunar turn of Aug 1/2 (**stars), so we turned up on Aug 2

Next Lunar turn
Aug 6/7 (*** stars)

So, next week we probably get negative data or news from somewhere Mon/Tues....maybe this is it Mr. X???

Maybe there is some other news because there is brand new news that Knight resumed trading with TDA and Scott now . Knight has jumped already. Expect more P-bars.

[TraderGirl]

Paging Al's charts!! What is your take on SPX versus Vixies?? Seems UVXY VXX should have taken a bigger hit on this move up.....any charts or thoughts??

[Al_Dente]

Yeah, sure, fine, I kno u all secretly snuck in there this am and bought FB at 20.57

anywhooooooooooooo
TOTALLY OFF TOPIC…Hooray for Gabby Douglas Michael Phelps Lotchke et al.

[Petsamo]

I'm using unsettled funds.

Get margin

The fact that I can't sell is not necessarily a bad thing. It may be much higher 3 days from now than a few hours after buying. I have margin on some accounts but I don't use it.

You don't have to use the margin and leverage the account, just gives you additional funds that are "settled" cash funds, so you you have more flexibility in selling when you want rather than waiting for funds to settle.....

Thanks, I know. I'm saying it sometimes might be better to sit on something for a few days, rather than selling right away.

[Cobra]

looks like we need a bigger triangle.

[MrMiyagi]

MrMiyagi,
I often read you write calls, when you have some time, can you elaborate your strategy. I generally but calls/puts and i guess i am afraid to write calls as the potential damage could be very high in case of a gap up gap down. Generally what are the data points you look before writing calls? I am interested because some of the times, the premiums on these 3X ETFs are tempting to write calls. Thanks anyway

The calls are covered so there's no risk of gapping up. The puts are naked so I pick ones well out of the money.

Strategy is simple; buy a stock you like, write a call to where you think it is going and make a bit of money that way.

Yeah yeah... it is more involved than that!!! Not as simple!
Best use of call writing is if you are holding stock(s) that are underwater and you can't bear to part with them. Start by writing calls to above your breakeven point, not too far out and not for all the shares, preferably at a point where the stock price has gone up and is about to turn (counter-intuitive, I know!!).
Only write puts on stock that you would want to hold in case of exercise. Best bet is far out of the money and not too far into the future.

Time decay is your friend.

[Cobra]

support, but it could be a descending triangle now.

[MrMiyagi]

QQQ chimes in;

[Al_Dente]

TRADERGIRL
They are sooooooo spot-on those vixens (some/many/most times)
Reading them properly…….THAT’S my challenge

VIX has a catatonic compressed bolinger (blue circle) = guarantees a BIG move soon (sometimes the BIG move is intraday; MANY times it is overnight via gap)
Here VIX and VXX etc……..Another one soon……..thx 4 asking

[xfradnex]

me the same

MIYAGI
yr facecrook is up 9%

MY Facecrook? How is this crap mine? I don't even have a FB page!

My dog is on face book. She says meow ................................FB says that some 20% of their accounts are fake (some are pets).

[Apple]

Monday night, Knight has to pay GS $440 mil. CNBC to have Co-founder of Knight (left business) on at 1:23. Should be interesting.

Been asleep at the wheel, kids go back to school soon, so very busy lately....

Two sets of turn data,
1)Weds and Thurs (Weds turned down, Thursday turned up)
2) There was also a lunar turn of Aug 1/2 (**stars), so we turned up on Aug 2

Next Lunar turn
Aug 6/7 (*** stars)

So, next week we probably get negative data or news from somewhere Mon/Tues....maybe this is it Mr. X???

Maybe there is some other news because there is brand new news that Knight resumed trading with TDA and Scott now . Knight has jumped already. Expect more P-bars.

Bloomberg citing WSJ, Knight has LOI for funding from undisclosed source.