9/26/10

I had issues with my recording software. I tried recording a couple of videos and after four attempts I finally compressed it all into one and shortened it substantially. I continue to stalk the stocks mentioned last week. Please refer to the archives to find last week's videos.

Here is a link to market review and some analysis.

http://www.screencast.com/t/M2IwNzVkYjUt

In addition to stock covered in last weeks video,I will also be looking at,

LHO - mentioned in video
RIG - nice consolidation a breakout would offer substantially higher prices
CRUS - looking for it to get possible momentum again
TEN - coming up on resistance, watching for either a breakout or slight pull back
MS - area of support, looking for it to hold

A look at The Major Indexes

Here is a link to a video on the Major Indexes

http://www.screencast.com/t/NWE0Nzdh

Sector Review

Here is a link to a video on sector review

http://www.screencast.com/t/YzNlMjE3NTA

Stocks I am Stalking

Although this Market is at a crossroads and what can be perceived as critical area, there are still many opportunities out there. Here is a list of stocks to watch, also stocks that I have been stalking and will continue to, looking for good entries. Keep in mind that timing and risk management is key.

Here is a link to a video on a couple stocks I am watching

http://www.screencast.com/t/M2IwNzVkYjUt

ECA position update

I was stopped out of the ECA aug 32 call position on Friday @ break even on the last piece. A bit frustrating after being up over 150% but 1/2 the position had been shaved @ +50% and did not want to turn a winner into a looser.

Tomorrow is FOMC and I have my ledger extremely light. I am at over 95% cash on my Day trading account. Have just been trading futures intra-day until the market gives me some solid direction. There are plenty of nice setups out there and I feel we will get the opportunity to trade those in the very near future. The rates should stay unchanged, lets watch for the wording and the Fed outlook to see how the markets react.

Pete

Major Index Review

Here are two video links of the Major Indexes, it was only supposed to be 1 video but my internet went down the last couple minutes.

Total duration of both videos combined is about 25 minutes.

http://www.screencast.com/t/NDJmZmQxO
http://www.screencast.com/t/NDgwMjNjOGE

Enjoy your weekend.

Pete

ECA Position

I started a position in ECA today. I bought the Aug 32 calls @ .30 this am as depicted in the side bar ticker provided by Stocktwits. When I purchased these I had witnessed some accumulation in the name and also the 30 day Implied Volatility was below 30 with a 20 day Historic Volatility value of 33.

There is a downtrend in this name that is still intact, however I found that $30 seemed to be a good area of support for the time being and also noticed an inverse H&S pattern on the 30 day/ 30 minute chart. Understanding that there is only 16 days left to expiration, I shaved 1/2 the position off @ .45 later in the day and am looking for ECA to get a continued push up to 31.90 if it can clear the neckline on the inverse H&S that comes in at 31.50

With Oil prices north of $82 and the dollar sliding about 10% in the last 2 months coming to rest at the 200 SMA, I thought ECA would be a good Basic Material play for a short term push at a minimum. If 31.50 gets taken out I will look for 31.90 followed by the 50 MA at 32.05 and possibly a push up to the downtrend line around 32.25.

Break even at expiration in this position is 32.30. I do not plan on holding it all the way till expiration. I have shaved 1/2 the position and will look to take some more off into strength.

Depicted below is a daily chart and a 30 minute chart provided by Think or Swim

ECA daily


Notice the short term bottom at $30 and the green down trending line as discussed above

ECA 30 minute


Notice the Inverted H&S and resistance at the 31.50 level as discussed above


Trade well,
Pete