DOW has passed 8500 and NASDAQ has passed 1500. We shall see how the market reacts on CSCO earning report (1c over estimate and flat guidence for Q4, traded lower AH).
SOHU closed lower @18.48. Long SOHU May 20 Put. Added GSF May 20 Calls. Shorted MSFT May 25 Calls and Long MSFT June 27.5 Calls.
Here’s an interesting article. Here I copied portion of it. We can figure out which pond we are in.
| NAME | POND | HOLDING PERIOD | FOOD SOURCE | QUALITIES |
| Investors | Random | No clue | No Clue | No Clue |
| Mutual Funds | Daily | Weeks | Investors | Huge amounts of money, Marketing/research groups, and a tackle box full of Investrador lures. |
| Swing Traders | Daily | Days | Investors | Smart, careful. Decision-making after market hours. |
| Institutions | 15 Minute | Hours | Mutual Funds | Deep pockets, Move Markets over short timeframes, very astute, inside information. |
| Day Traders | 5 Minute | Minutes | 15 Minute Fish | Waits for rock solid plays. Decisive. Decision making during market hours. |
| Momentum | 2 Minute | Seconds | Investradors | Timing High Volume, High Volatility Stocks. |
| Scalpers | 2 Minute | Seconds | Everyone | Happy just going click, click, click all day long. |
Basically, you are taking money from the timeframe above you and giving money to the timeframe below you. For example, if you measure your holding period by minutes, then trade off a 5 minute chart. However, you need to monitor the 15 minute and daily charts for opportunities. Likewise, use the 2 minute chart to monitor that pond for hazards. But remember if you are playing in the 5 minute pond then stay there. Don’t move from pond to pond.
There was a big sell off this morning on LOWS. My put position finally turned positive. Out of fear that it might bounce back, half position was closed at small gain. Yet, looking at the daily chart, it’s likely that it may test 50 SMA. It’s still closed lower than the open. The greedy side of me decided to keep the rest of the position. In hindsight, keeping 1/3 position might be better idea or taking the profit by closing the position entirely. Let’s see how it goes tomorrow.
Long GSF May 20C; added SLB May 40P.
OAKMX: it’s still in the short-term uptrend since its breakout of long-term downtrend. Resistence at 31.55.
LSCRX: it’s right at resistence and overbought condition.
Nasdaq needs to break 1500 and DOW needs to break 8900. DOW has substantial resistence around 9000.
Long GSF May 22.5P, SLB May 40P, AMZN May 27.5P and LOW May 42.5P, MSFT May 27.5C; Short MSFT May 25C.