Thursday, February 25, 2010


Broke out of the triangle. Target is 520

Wednesday, February 24, 2010


BB are tightening and the stock is trading in a triangle. A $15-20 move (based on the triangle measured move) is coming......

Friday, February 19, 2010


Refer to my original post dated Feb 6th-

SET UP: Negative divergence on 30 min, 60 min and weekly charts. Daily RSI approaching 70. In the past, every time BIDU's daily RSI hit 70, it underwent 6-10% correction within 1-2 weeks.

STRATEGY: Mar 480/470 put spread.

ENTRY TARGET: 500 and above. The upper BB on the daily chart is at 512.80

EXIT TARGET: Feb 10th gap window and Jan 15th highs at 470-472. The 20 EMA is currently at 462 and rising. A 10% correction from current level will give us a target of 450.

38% retracement of the move from 435 to 500 will give 475 and the 50% retracement-468.

The middle BB on the daily chart is at 450.


Wednesday, February 17, 2010


I think SPY will go to 109 before EOD Friday (OPX).

Strategy: SPY Feb 111/110 put spread. Possible 100% return.

Tuesday, February 16, 2010


I am hoping for a pullback in SPY to 108-108.50 before OPX Fri. The 60 min RSI is slightly above 70. Some low risk OPX plays-

1. BIDU Feb 500/510 bear call spread for a credit of 1.75 or above. If BIDU rallies towards 500 tomorrow, the credit will be 2.50 or above. BIDU will close below 500 on OPX friday based on O.I

2. POT Feb 115/120 bear call spread for a credit of 1.00 or above. POT will close below 115 on OPX Fri based on O.I

3. AAPL Feb 210/220 Bear call spread for a credit. AAPL will close below 210 on OPX Fri based on OI

4. SPY Feb 111/110 or 110/109 put spread. The max upside on SPY this week is 110.4-110.8 IMO (50 MA on the daily is at 110.8). Max return on those put spreads are approx 60% and 130% respectively.


Sunday, February 14, 2010


Set up: Looks like a great short here. Overbought. RSI and STO look ready to roll over.

Strategy: Buy Feb 70 puts if it rallies/gaps up on Tue . This is a high risk, high reward trade. Exit at 70.

Saturday, February 6, 2010


SET UP: Huge Ending Diagonal, has one more push left to the upside. Target is 480-ish.


STRATEGY: Short at 478-485 using April put spread.

EXIT TARGET: 400 and gap fill at 386-387

CAUTION (Added on 2/7/10 at 23:25 hrs): A throw-over is possible in ending diagonals, in which case, BIDU might hit 500 before rolling over.

Friday, February 5, 2010


EARNINGS: 09 Feb 2010 ( Before Market Opens)

SET UP: Support zone at 52.00-52.50. Oversold going into earnings (Daily RSI at 30)

ENTRY TARGET: 52.00-52.50

EXIT TARGET: 54 and 20 MA at 55

STRATEGY: Mar 55 calls.

Thursday, February 4, 2010


Set up: Double bottom. Daily RSI is 26.50 (oversold). Positive divergence developing.

Entry Target: 38.90. EDIT (2/5/10, 10 AM EST). Next support is 37.40

Strategy: March 40/42 call spread.

Exit target: 23.6% Fib retracement at 41.90 and 38.2% level at 44, which is also the confluence of 20 MA, 200 MA and support/resistance TL

CAUTION: I think PBR is headed to 35-36 by end of March. This is a quick scalp/swing trade.