HNP is forming a triangle here. Which direction will it resolve to? The prevailing trend is down, but it’s been in oversold condition for a month, so I think it will move up from here. How far can it go? I’m not sure. The resistences are at 32 and 34. I may open a small call position on HNP Jan or Feb 30 Calls. Yesterday, the quote for Feb 30 Call was 1.3 x 1.5.
Updated:
As expected in the last entry, LOW clsoed at 54.01. The intraday low was 53.68. However, the volumne was low. I closed my Jul 55 Put position at 2.00 opened a few days ago.
MSFT has been moving up a little bit in spite of declining overall market. If it breaks out from 27.5, it will signal a new attempt of bullish trend since it hit the bottom in March.
INDU closed at 10042.16. S&P 500 closed at 1074.14 and NASDAQ closed at 1949. It looks like more money is moving into the big caps.
Started experimenting YM, the e-mini Dow Jones index future. It trades in much lower volume compared to ES. The result has been good so far using the same setup for ES. Actually, the same setup (trend following plus price action, resistence and support, plus Bollinger Band with Slow Stochastic is being used in stocks, stock options, and futures.
1 point tonight. Two shorts: 1046.75 and 1046.5. Covered them at 1046.25 and 1046. The stop was set at 1048.5 way above recent high 1047.
It’s been profitable on ES front although scalping is just picking the pennies. I may venture into swing trade over a few days or a week horizon. What would be the target and stop for swing trade? I guess I would risk no more than 1-2% of the capital on each trade. The setups will be two: trend following using SMA 5 and 20, and Bollinger Bands/Slow Stochastic. I’m using the same setup trading other stocks and options.
Bot SUNW Jan04 at 4.05, rolling over Nov contracts to Jan.
Other than a long position on SUNW, almost 100% is in cash right now.
QQQ closed up 0.70. It bounced right from the trend line after five days of declining. Added long position.