BIDU

Broke out of the triangle. Target is 520

BIDU

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

BIDU

Refer to my original post dated Feb 6th-

http://stockmarketmasala.blogspot.com/2010/02/bidu.html

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.


GLTA

SPY

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

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

FEB OPX WEEK PLAYS

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.

GLTA

RIMM

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.

BIDU

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

ENTRY TARGET: 478-485

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.

KO

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.

PBR

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.

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.