FCX

Set up: Close to major support and 200 MA on the daily chart. Daily RSI (24) is in oversold territory.

Entry Target: 65.50-66.00. The 200 MA on daily is at 65.58

Strategy: I am long via March 70/75 call spread. I entered on Friday (1/29/10) at 1.50 when FCX was trading at 66.50

Exit Target: 23.6% Fib retracement at 71.00

THREE BLACK CROWS

We have witnessed "THREE BLACK CROWS" candle stick pattern-

http://www.candlesticker.com/Cs74.asp


http://www.tradingday.com/c/candlesticks/candle...

On Monday, I will close my SPY Feb 112 calls (Cost Avg 1.65) at 1100-1105. The calls and puts might lose some value on Monday if the VIX drops. It is something worth keeping in mind!

SPY- Time for a bounce

Entry Target: 1085-1090. 100 day MA is at 1085.

Exit Target: 50 SMA at 1116. 20 MA is currently at 1132 and falling approx 2 points/day. The 50 and 20 MA will be at approx 1115 around Feb 5th.

STI

EARNINGS: Today AMC

SET UP: STI up against major resistance. RSI on 30-min, 60 min and daily time frame is overbought. Very minimal upside. Good earnings are already priced in. Up 10% today!!!

STRATEGY: Feb 24/23 put spread at 0.28

EXIT TARGET: 23.50

GOOG- UPDATE

GOOG CHANNEL: Can GOOG go to new highs?

AXP

EARNINGS: 21 Jan 2010 AMC (After Market Close)

TRADE SET UP: Resistance at 43.50-44.00. The 200 SMA on weekly at 44.04. Daily and weekly RSI approaching 70. Bearish rising wedge?

STRATEGY: Feb 43/42 put spread at 43.50-44.00 level

EXIT TARGET: previous resistance at 42.00

SBUX

Earnings: 20 Jan 2010 AMC (After Market Close)

Set up: Two gaps below- 14.7 and 19.70. Lower parallel trendline currently at 20. Bearish rising wedge pattern.

Targets: 22, 21 and 20

Strategy: Feb 23/22 put spread

RISK: upside target is 25.50. The upper parallel trendline is currently at 25.50

HUM

Set up: HUM is up against major resistance. RSI (daily and weekly above 75) in overbought territory. Should pullback from current levels.

"Republican Scott Brown defeated Democrat Martha Coakley to become the state's next United States senator and potentially derail President Obama's hopes for a health care overhaul."

The health care stocks rallied yesterday in hopes of Scott Brown's victory and he did win! Buy the rumor, sell the news today? A gap and crap is what I see for health care stocks today.

Exit target: gap fill at 48.60

Strategy: Feb 50 puts

SHLD

Please click here for my original post (Jan 7th, 2010) on SHLD

GOOG

560-570 level should offer support.

PCLN

PCLN has the potential to go to 240-250. Earnings are on 15 Feb 2010.


The upper trendline runs at approximately 250 around Feb 15th. The middle trendline runs at 220 and the lower trendline runs at 197 around Feb 15th.

ISRG

EARNINGS: 21 Jan 2010 AMC (After Market Closes)




The upper trendline runs approximately at 333 around Jan 21st, the middle trendline runs approximately at 280. and the lower trendline runs approximately at 240.


Fib retracement levels are from March 2009 low to a HYPOTHETICAL high of 335

T

Strong TL support here. RSI below 30. Should bounce from current levels.

Entry range: 25.30-25.70

Exit target: 38% retracement at 26.80

Strategy: Feb 26 calls

BIDU

BIDU is up 7% in after hours trading on Google news (possibility of pulling out of China)

The two trendlines and the 50 SMA meet at 418. I might try some Jan puts for a quick scalp.

EDIT (7 AM on Jan 13th): BIDU is trading at 430 in premarket. It could run up to the double top area of 440.

Support: 424-426 and 418

Resistance: 440-442 and NONE above 440-442

A Jan strangle might be a good idea.

JCP- Update

Refer to my original post dated Jan 9th

http://stockmarketmasala.blogspot.com/2010/01/jcp.html

Daily RSI is at 32. Approaching my target entry area (24.25-25). Exit target at 27.00-27.50

DIA

DIA 107-109 (Dow 10700-10900) is a huge resistance and should provide a good shorting opportunity for a 6-10% downside.

F

Hitting against a resistance zone at 12.00-12.30. Daily RSI just shy of 90! Weekly RSI>80. Should pullback to at least 11.70 and possibly to gap fill at 11.00

From Seekingalpha article (http://seekingalpha.com/article/181965-monday-options-update-ndaq-ands-f-eem)-

"Ford Motor Company (F) – As Ford sweeps up the awards at the Detroit Motor Show investors have swept its shares to above $12 for the first time since March 2005. The acceleration in the share price comes at a time when the Chinese market officially overtook the U.S. market as the world’s largest, thanks to successful domestic stimulus at a time when American sales slumped. Still, options trading patterns reflect the risks of getting long the stock as American equity prices struggle to grind higher. Today’s investor interest using options appears to be skewed to the put side. In the February contract volume of 10,000 contracts traded at the $11 strike at a price of 32 cents while more than twice that volume went through at the $12 strike for 70 cents. In the June contract exactly 1,000 contracts were bought for an 8 cents premium at the lowly $5 strike."

MT

38.2 retracement, 200 SMA on weekly and the trendline resistance all point to 49.50-50.00. Weekly RSI is at overbought levels. I am hoping for a pullback at those levels.

OPTION ARM's

Suggest a market crash in July-Oct 2010 and July-Oct 2011???

"It’s tough to say exactly when the storm will come. But my guess is the second half of 2010.

This second wave of foreclosures will not be good news for the economy or the stock market…At least that’s my guess."

http://dailyreckoning.com/the-second-wave-of-mortgage-defaults/


Look at what happened to stock market after the first wave peak of subprime in Oct 2007. The next wave peak of subprime, Alt A and Option ARM's are due in July-Oct 2010 and 2011.

JCP

Long at 24.50-25.00. Exit at 27.50-28.00

SPY JAN OPTIONS EXPIRATION WEEK HISTORIC PERFORMANCE

SPY performance during Jan OPX week-

Jan 2009: DOWN 6%
Jan 2008: DOWN 5%
Jan 2007: UP 0.5%
Jan 2006: DOWN 0.1%
Jan 2005: DOWN 1.7%
Jan 2004: UP 1.5%
Jan 2003: DOWN 3%
Jan 2002: DOWN 1.6%
Jan 2001: UP 1.8%
Jan 2000: DOWN 1.6%
Jan 1999: DOWN 2.7%

Since 1999, 8 out of 11 Jan OPX weeks were negative.

SPY- UPDATE

We could go to 1156-1158 on Mon-Tue and then drop to 1130 by OPX

OSIS

Broke above the previous all time highs today. Should pullback to at least 29-30.

Reminds me of swine flu stocks like NVAX, SVA and BCRX. NVAX spiked to 7 in Aug-Oct 2009 and is currently trading at 2.65. SVA spiked to 12 and is currently trading at 6.60. BCRX spiked to 13 and is currently trading at 7.85

PCX

Short at 21.50-22.00

Exit targets-

1st Target: 19.00

2nd Target: The 20 EMA at 16.50

QQQQ

QQQQ can go up to 48.40 by end of Jan or early Feb. I will buy Mar 48/45 put spreads at 47.50, 48.00 and 48.40

X (United States Steel Corporation)- UPDATE

Currently overbought, daily RSI >80 and weekly > 70. STO is way too high.

Short at 64-65 with STOP at 65.5. If it breaks above 65, the next target is 69-70.

Exit target of 58-60

Long term, I think X will go to 75-80

IWM

Short at 66-67

SPY

I will go 100% short at 1150-1155 with exit targets of 1138 and 1130

SHLD

105-110 is a huge resistance zone. Will short 25% at 105, 35% at 108 and 40% at 110.

Pullback targets- 100 and 90

ATI

Short at 50

X

Short at 62.50-63.00

FAST

Short at 47.50

USO, XLE & OIH

USO, XLE and OIH approaching double top levels. Looking for a small pullback from 41.90 on USO, 60.40 on XLE and 131-132 on OIH. Daily RSI on USO, XLE and OIH is at 70's. I think USO, XLE and OIH might break above the double top levels after a small pullback.

TIE and CREE

TIE: Currently overbought, daily RSI >80 and weekly >70. Approaching resistance at 14.90-15.00

CREE: Currently overbought, both daily and weekly RSI >80. Approaching resistance at 60.

60-62 zone acted as a resistance back in 2000

Nov 7, 2000 open-60.16 high-60.16 low-54.00 close-55.81
Nov 6, 2000 open-60.22 high-64.12 low-59.69 close-61.50
Nov 3, 2000 open-56.00 high-61.44 low-54.62 close-59.88

MOS

Will the gap at 71 be filled? My answer is yes :)

SPY

Target 1168-1172. I will start scaling into puts at 1150.

CSIQ

Approaching resistance. Overbought with daily RSI >80 and weekly >70. Looking for a pullback to 30 and possibly 27.50

TRADES FOR TOMORROW

1. Short SPY at 1137-1138 with an exit target of 1130

2. Short USO at 40.60-40.70 with an exit target of 39.50

USO

STO is way too high. Resistance at 40-41 zone. Looking for a pullback to 39.50 and possibly the 50 SMA at 38.90

JAS

Overbought with daily RSI at 69 and weekly at 73. Also forming a bearish raising wedge (broken orange TL and the pink TL). Looking for a pullback to 20 SMA at 34, which is also a confluence of support and resistance trendlines.

MT

Overbought with daily RSI at 70 and weekly RSI at 67. Looking for a pullback to 20 SMA at 43, which is also a gap fill area.