Okay traders, thought I might pick up a bargain but everything looked like crap. Back in cash but some well placed (I hope options) SNDK straddle as usual the puts well outperform the calls. Still have some EBAY 100's and I hope they don't go into the crapper but here again, much cheaper than holding tech positions that are flattening. Downside on climactic volume not a good sign. Cash is king but we had a great week nevertheless

Education sector & SINA implodes! BEARISH CLOSE FOR THE MAJOR INDICES http://www.marketgems.com/klaxbub.wav gorgeous close anticipated here for shorts in SINA. CECO look like continuing shorts and hopefully the APOL will move down since it did hit 90 on a bounce off a lovely gap 'n crap which was another straddle play we had. The Target for the recovery was 90 and looks to retest 85 or lower. The close is very bearish for the semis, the techs, the networkers, the software sector just about everything closing badly with no sign of short covering yet.

Don't care for techs! DIA in 105s @ $0.75 now $0.45 but I like the July 104 just picked up at $0.75 that's all. Possibly recoup the lost change and regain some profit, risking little. SOX and SMH breaking the 50 ma might provide another buying opportunity tomorrow after an exhaustion move down, but after such a pullback I'd wait for that 10:00 possible recovery before entering any semis. Savvy shorts are covering, if we want to be savvy too we'll buy off the bottoms. Hoping for continued downside in education sector but stops set just in case. CECO and COCO both look good for continued downside but APOL 85 puts are very easily tradable intraday with only a $0.05 spread.

ALERT SCHN August 30 puts @ 1.00 have the straddle in place. SCHN was a monster play last quarter long and then short, short short.

LWAY suggest not holding this after day 3 of upside (enter again if you like at a bounce off the 20/50 ma but its pulling in and stopping me again but nicely at a trailing stop. Its always easy to enter this baby without letting profits erode. The whole point of trading is buying low and selling high and rebuying low again. I want positions settled before we go off and I won't be trading tomorrow except to watch stops and nurture some options.

IMCL ---> 80 or 85 calls for July still a hold with a target of 90 but we locked in 86 and we might lock in next at 88 or thereabouts (don't bother with this expensive stock the options are awesome and we've rolled up from the 75's and even from the 50's in April)

LWAY and WFMI (target still 100) but of course not the stock. We got LWAY first on Tuesday's newsletter and it was called a hold and I expect others have found it by now are buying and ramping it up for us even more!!

In the contest between POS's IBM & SINA, I think SINA is worse but IBM is a close second. I am not (unfortunately short or in any IBM puts but will expect rallies to be sold (just pauses that refresh) If SINA reports the July 21 are you buying now for the expected move up? I don't plan to lose 10 or 20k on the chance we might gain 4 or 5. Let's wait until the bottoms and we'll enter when we see more than a pause that refreshes. Remember if you hold through massive downside the money you lose is real.

Possibly overbought ISCA. ISCA a nice company but its hit a new high at 50 and you might either a) pick up the July 50 ISCA puts at 1.85 or play like we played GIS - the gap 'n fill or gap 'n crap. ISCA is a huge play and has had this "anticipatory upswing" in front of July 7 morning earnings report. ISCA gapped and crapped last quarter for weeks after its earnings report. I'm looking for long and short swings and across sectors, not impressed with mini-rallies although I'll take them as we did with select techs but not marrying any of them.

RMBS you might expect some "anticipatory upswing" here in front of the report above 17.05. I would play this long (pick up calls at the lows and puts at the highs (puts already in play) WE DO NOT BUY HIGHS and SELLS lows but the reverse. Ultimately I am not impressed with RMBS but I will still hold a straddle because I expect the move will be a swing play either direction much like RIMM CMVT and PLMO were. Have a great time this weekend don't be the 'hamina-hamina' trader stuck in long postions and trying to explain away why its good to hold through a 160 point pullback.....it's not good.

Some options scattered across sectors is good enough.

SINA our favorite POS trade this week continues to puke and I like it to 30. Holding the 35 or 30 puts but don't be a 'dope' LOCK IN by end of the session.

YHOO AMZN AMAT and BRCM slaughtered today and holding none of them and we might get a nice bargain here. I'm looking for a 34 or so area to pick up the YHOO calls (we already sold the 35's at just under 37 which was our target) Our strategy is to make money and lock it in and not watch it ebb and flow away. We shorted RIMM the two sessions before the report and posted that the more it moved down, the better to buy more calls in front of the report at a discount. I wasn't able to short YHOO the gap and crap was huge! but we'll enjoy buying the bottom and watching it rise like TASR.

ATH was on our long list today but I didn't get the bounce although I am looking to pick up ATH calls if it retests 88.50 or so. We looked for APOL short (85 puts and I thing we might have a chance especially if you bought the 85 puts at the gap open) Extremely strong sectors and charts like ATH will lag a day or two but like our GPRO from 18th of June, ultimately unless there is something "CAH-LIKE" in the company I expect a retest of 95 and higher.

Smart trading to lock in profits YESTERDAY and look for some shorts on overpriced, overbrought and overvalued stocks. We did hold KMRT, LWAY, RIMM, GIS, SMH, ERTS and QCOM/KLAC calls although locked in partial. Nothing we held gapped down at the open so more gains were taken, even ERTS hit 55 although I waited until 54.54 to get out. Fabulous week all in all, especially with KMRT, RIMM, LWAY TASR and SCHN. I did lock in profits in SMH but stopped out nicely with just losing some of the profit (I would not be nuts to hold for a massive nearly 2 point drop since that's about what I got on the long side before!) That would be very counterproductive.

SCHN (July 35 calls) here is where I pick up the call part of the straddle as its looking to rally intraday. I am out of stock position in SCHN and will let the calls carry me to the report. The beauty is that we already got our target of 35 and a lock in was the way to go. I didn't short SCHN or pick up puts although I might pick up a few closer to the report. REMEMBER TRADERS SCHN might be awesome through the report, but could drop like a rock afterwards. Traders who don't prepare a hedge and put all their money on a hope and prayer of continued upside and don't lock in profits will be out of the market soon enough

TASR I suggest holding a nice amount of 45 calls for July (remember those that held August techs options lost MORE than those that held JULY!) because we want to partake of any potential gap up next week. Trading it today is peanut trading and lackluster but I did pick up more calls for a 'kmrt' price drop!

LWAY awesome 30% gain, SCHN KMRT and RIMM all nice. Stopped out ADBE and ERTS but will NEVER hold longs through downside like today. You have to be quite a novice not to let yourself be stopped out of long positions at a profit. Locked into 75% gains yesterday and some good short set ups today. Waiting to buy back cheaply while my gains are already in my cash box! We did lose in DIA but the $0.75 investment was a heck of a lot better than losses thousands on the tech massive drop today!

YHOO if you held this y9o would have been down quite a bit! If you held BRCM, or any tech. I would actually consider the YHOO calls in the 34.50 area for a similar move like RIMM (where we shorted the highs and bought at support in the 59-60 area and DID NOT HOLD THROUGH THE PULLBACK) We were already gone in YHOO when YHOO was just below 37 (July 35 calls about 1.15 now) and AMZN although I did expect to pick up calls in both today I didn't expect to get them at a heavy discount.

I'm heading out soon for the July 4 weekend and holding only incrementally from the July call options which were locked in thankfully but holding the rest like the QCOM 75 calls.
Some put plays I like here are APOL (again for the third trend) and IBM for a target of 85 at least if not 80. The LEN 40 puts for July finally. You must learn to short and protect yourselves in markets like these and one way is to lock in during good market moves and be prepared to short when the set up is clear. Markets are not always up and its easy to swing trade when the markets are up, but not so easy when they are down (that's when those traders will disappear)

You might as well wait to later in the afternoon. Anyone who bought August calls lost twice as much as those who had the July which is why we say why buy so far out? You have no clue where this market will be in August especially after big gains/losses expected during the earnings season. You can buy the August closer to the expiration day (around middle of August but why pay up to 3 times as much for an option and loss 4 or 5 bucks before the report?)

IDCC every quarter we took a straddle and the downside prevailed hugely. I don't know when earnings are coming coming ut it failed to take out 19.50 and I would bet on another deep pullback Options straddle will be cheap. DIA was only $0.75 so with that cut I don't much care. Just don't get stuck in expensive stock positions without stops!

KMRT 70 calls very nice here but I'd still lock into the rest. We want a profit and not go and let the profit go to hell by neglecting to lock in. KMRT moved up well the market is pulling back. Keep as little on the table as possible.

RMBS (like KLIC) very consistent failure play quarter after quarter. I would consider the July 15 puts for only $0.20 or even August 15 as this one is dismal. A hedge would be the July 17.50 calls at about $0.60 for a very cheap straddle that could net a lot in a swing play in the direction of the breakout or breakdown following the report.

LWAY stoppd out above yesterday's highs.

RIMM those with any RIMM calls left should take their profits every single option strike price more than doubled but 70 was our target and getting nearly 71 was fine! We did say to hold about 25% RIMM overnight, GIS also. If RIMM hadn't broken from 63 to 59.30, it might not have been as good, so I suggest we watch YHOO and also buy the lows (not holding through thick and thin!) We are right in the earnings warning season. Stops should be tight and gains locked in!

SINA our short play continues to break down. DIA and SMH are down but at least the DIA are options which were cheap. Protection is more important in this market than remarks of huge rallies and techs (which are for the most part fully or overvalued) will go up fabulously from here) are just statements without any solid fundmental backing (wishful thinking) Its a stock selector's market and you can't take the short cut with just the popular 'most active techs' and think you will get huge gains. The point is finding the more elusive stock across sectors. We called locking into profits yesterday and although I'm also still long some option positions, there are also good puts to hedge. If you don't hedge or if you are irresponsible protecting your assets, you will be burned. Waiting for further pullbacks before entering some cheaper options (like RIMM I think a pullback in YHOO will be good for upside but we locked into YHOO just below 37)

RIMM, SCHN holders might be cautious here and lock in more gains. We got the target in RIMM and for SCHN you might consider taking that whopping profit. July 35 calls with the preparation for a gap up and crap like last quarter! A cheap investment of $1.35 and not $72 like QCOM and the other overpriced techs <g>

KLAC, QCOM, SINA BRCM demolished. DNA first stop listening to the overzealous traders telling you to hold all the techs without stops long through earnings because they are going to rally to the moon <vbg> I've read some of the posts this morning and extremely surprised that I haven't seen traders call 'locking into profits'

I would consider holding a July 55 straddle through the report One of the positions will likely be swing (a lot like APOL was) You had a deep pullback then a recovery to 90

RIMM second lock in now long 25% options and didn't touch them only twice today. RIMM was awesome gemmers and we enjoyed the up and even some downside! We will have many more earnings plays for you WELLIN ADVANCE of the report like RIMM and SCHN but not as many as last quarter, but we'll come back like a tornado soon enough. July is important, August is important to recover from the earnings season and September will have more earnings plays (remainders are always the best).

GIS a hold! LWAY up 23.69% exploding quite bit and this is why we like 'em cheap (WFMI calls should be put away and forget about them. We'll see 100 probably by expiration) everyone I'm meeting is buying there (where I got LWAY!) and low carbs are in. GIS was rather a nice surprise as we say no straddle as we can always buy a gap down or pullback and that's what happened. I am not interested in overloading technology. I have my few calls in the biggies and did well probably better than those that held the likes of QCOM EBAY and KLAC in stock positions because we leveraged and controlled thousands of shares and I never once took QCOM on vacation with me (only the July 70 calls and now the July 75 calls) I'm of course more impressed with QCOM but that has long been our favorite in the sector although I didn't buy and hold the stock just the options. (not even as many as I had with TASR but so be it!)

Update on SINA. folks if you shorted this or bought the 35 puts when we suggested, this has been crap since 18th or even longer, you might want to lock in profits here although not all. This was a very big pullback on HUGE CLIMACTIC volume 250% more than average and SINA is looking like TASR did on its way down! I'm looking at a target of 30 for SINA but will let any shorts and puts stop out on their own slowly. SINA puts from 1.90 to 3.20 and I don't see a let up in this huge drop in the stock. Potential gap down in the morning as well or another short set up.

Update on BLS. I think we can hold some of this with a trailing stop. BLS had a lovely move yesterday and bounced nicely intraday off support in 26 area and might be worth holding some of it although the chart is very iffy I'd like to see if we can get 26.50 tomorrow and maybe 27.

newsletter play BLS only for upside
BLS been losing in some communications services as part of an annuity with 10% in this horror of a sector. One of their largest holding is VOD and BLS. I've since transferred back to the dow large cap and technology but have not as yet founda sustainable bottom in this sector. BLS chart short term indicators are showing a break of the 20 day moving average along with the 50 ay moving average and a spurt in the MACD and break above 0. We are not looking to marry this but its right at important resistance of 26 (sink or swim at least for a trade) with 26.15 a 38% retracment from its 52 week low where stocks might rise. Many long legged upper tails on past rallies suggests the likelihood of a sustained rally is small, however we might move up from 26 (trigger) to 25.50 the next test and maybe 27. Volume was climactic. A better trigger might be after a pullback at the open so we'll look at the 5-minute chart for a break above the 20 ma.

LWAY THC explode and I suggest we hold BOTH LWAY into day #3 and SCHN (day number 2 for LWAY and THC) for swings. SCHN also a hold but lock in some and leave some, this is awesome the second time around. I would be very cautious of overholding here as there will likely be some kind of profit taking in the major techs (take those profit folks just leave incremental sizes) in the last 10 minutes or 5 minutes of trading. Holding KLAC 50 and QCOM 75 calls (rolled up from the 70') and SNDK which is lousy but we did say the 22.50 straddle.

TTWO explodes http://www.marketgems.com/hibaby.wav
As we said no matter what the FOMC had decided we expected the market to rise sharply int he 3:00 to 3:30 time zone and that's part of the reason I'm around an enjoying upside and holding some swings here. (all plays updated via email and some on the thread) We are sizzling and we're not even 'on call' SMH doing better and I'm holding this since Monday as well (last Monday) and now with DIA and HHH we've got some index options to subtantially increase our other gains. I did NOT SCALP, barely traded and can essentially only watch 10 stocks at a time although I don't need more. We are holding ACROSS Sectors and the only play giving us a little frustration is LEN which is going nowhere and I did suggest we might pick up the 40 puts but with SCHN soaring and so many others back on track (ADBE, ERTS and TTWO explosion to upside I'm going to hold off on those puts)

SCHNITZEL you go baby! http://www.marketgems.com/harley.wav
EBAY posted earlier nice also, but as I suggested to our members, hold the options abut sell the stock in EBAY and TASR tonight, SCHN, probably gonna hold that but before the report will pick up calls. Last quarter SCHN was dynamite before and into the report, but sagged after so we will be ready to MILK the Schnitzel (ugh Schnitzel with milk) but we like it here!

TASR triggering off the 5 and 15 minute chart at 43 on 15 minue and looks to retest 48 or so, heck the options are soooooo cheap.
Here is the chart we promised but we posted TASR intraday and emailed as well.

EBAY chart sent out before the meeting, good for a scalp or hopefully longer term option play once again. Intraday a good play as long as you revert or hold the options overnight 90k is a little steep when I can leverage 10 times that amount with the calls.

3:00 reversal period DIAGA $0.75 here for a longer term hold. DIA July 105 calls (after getting bounced out of the OEX, this position is cheap enough without tying up 105K buying the DIA. No stop put in yet although I don't intend for this to wipe out like OEX, we'll consider a loose stop tomorrow. I expect upside here possibly until 3:30 or as long s the session. I am holding HHH, SMH but as I said knocked out of OEX

Trading suggestion: TTWO alternative to ATVI I was torn between TTWO and ATVI today for the newsletter. I chose ATVI because I thought the chart was superior and the stock cheaper but it did not break the 16 area and looks to be heading down which is a shame since I didn't get any of the upside from 14. TTWO is in the same sector and this mini quintuple top in the 31 area is very strong resistance, but watch fofr a break of 3.70 and this might be a holder as well. I am bullish ADBE, ERTS (I love ERTS) and trying to add either ATVI or TTWO

ADBE and ERTS (longs again) back on track but no move in ATVI. I would consider ADBE and ERTS as position plays possibly through the next few weeks (that doesn't mean we don't take profits as they come, or stop out with good profits as well, it just means we hope to reenter it and its a long trade for the most part)

Monday's newsletter
ADBE and ERTS looks good here for continued upside as it sits on the rising 50 ma volume was strong. Look for a retest of the 47 area. A buy above 44.60 ERTS just broke nicely out of a bullish flag and we have a price target first off 55 and maybe 60 (55 calls for June for ERTS)

Expecting our Friday play of YHOO (add AMZN) to move higher in the preearnings "anticipatory upswing". 52 was resistance for AMZN and If we break that area I'd buy the 55 calls for July revving up for that move to 57 or 58. IT WOULD BE IMPORTANT TO HAVE call options in: AMZN, YHOO, RIMM

SCHN moving great this was posted even before vacation and reminded daily. I like this but still a little fearful of holding through earnings, but we have until the 7th to lock in nice profits and think of calls and some puts (still just like the stock though, its easy and liquid to trade because everyone else is chasing QCOM leaving the field wide open for scores of other solid plays that aren't picked off by the mm's) We will hold some calls through earnings but remember last quarter it soared but then filled he gap and dropped way lower (which is why SCHN is so exciting) we might get both directions again.

from Monday's newsletter: SCHN our earnings plays might move up for a while in "anticipatory upswing". A buy above 30.88 Gap 'n snap last quarter but the first day of the gap 'n snap was the end of the line, however SCHN was priced higher at the time. Still if there shows signs of 'gap UP and crap' following the report, it might be a multi-day pullback. Very volatile and exciting stock.


I will hold my QCOM 75 calls this time although wasn't a dope not to lock in some gains since it was a full position. I'm not in love with either QCOM or KLAc but will take what they offer, milk them and go on to others.