August is over

Slowly moving August is over. After this comming Labor Day week, trading volume should be picking up as traders return from their summer vacations. NASDAQ has reached new high and INDU and SPX are approaching its recent high respectively. All markets have done some base building, we will find out wheither or not they will break out or go down. Short term wise, it looks the market will move up a little. Short: QQQ Oct 32 Put (it’s not working obviously after QQQ’s big run up). Long: HNP (I have been waiting for opportunity to own some HNP shares), SUNW, SOHU and MSFT (SSF).

Correction or Reserval?

DOW dropped 185.58 to 8493.39 below 8500. NASDAQ closed @ 1492.77 below 1500 and Russel 2000 closed @ 408.32.

LOW dropped almost 9% due to lower than forcasted revenue. The short position opened Friday went up more than 130%!

SOHU closed with bearish harami candle posing to reverse at almost twice of average volume.

MSFT broke down the trading range and support level is @24. The long position will be opened @24 level.

Support level IBM @ 85 and CSCO @ 15.5.

OAKMX and LSCRX: the remaining positions will be closed tomorrow.

DOW 9000?

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.