Portfolio Update

The trading day was flat today, but I still saw some gains today. The suspicions and cautions I indicated yesterday seem to be coming to fruition.

CVX had a positive day, but because of market a large number of bears earlier on it dropped a fare amount. It wasn't until later in the day that the bulls charged in to bring back a gains. Unfortunately, there were not enough bulls in the options market to raise my Call Option back into the green for the day.

Although FPL had a similar trading day, it successfully closed up in the options market. This provides me with a minor gain. Also, on this trading day, FPL opened and closed above the same resistance trend line that it broke above yesterday. This is added support that it may finally be out of the down trend. There is still one more resistance trend line for it to break over. This has about 3 or 4 days to make it happen. But since Thursday is a holiday, the market will be closed. As a result, I suspect the true direction of FPL won't be identifiable until next week Tuesday.

MU put in a Doji candlestick today. These candlesticks usually suggest a change of direction. However, this has occurred after a bounce and it is short of the high of the most recent pull back. This candlestick was also put in above the most recent resistance trend line. The volume was below average and all of the indicators conflict with each other. The only thing I can do is wait for tomorrow and see if it continues to remain above the resistance.

Finally is the Silver ETF, SLV. It pulled back hard but worked it's way back up for a small loss today. The trading volume was heavier than average and the indicators suggest potential exhaustion. There are a total of 4 supporting trend lines below it. Two inclining and two horizontal. In my opinion, the lowest of the two horizontal support levels ($17.42) is the most reliable indicator of future direction. If it bounces off of that one with some volume in the next 5 to 10 days, then I think it has a good chance of going for $20+ by the end of the year.

I have a few prognostications. S, PCS, and GLD.

S and PCS both were on the same list as MU. Since getting into MU, S has done much better. It has ralllied from just under $3 to just under $4. Currently that seems to be a point of resistance for it. In it's rally it has created a bullish trend line that suggests that it could pull back to about $3.50. After that it will attack the $4 resistance level again. I will be paper trading this in the options market, as it is a non-dividen paying stock.

PCS, on the other hand, has continued to consolidate. But now it is suggesting that it may be ready for it's rally. Currently it is at $6.33 and I am not expecting it to get higher than $7.50 on it's first attempt. Because it is also a non-dividend paying stock, I will be paper trading it in the options market.

Lastly is my prognostication on the Gold EFT. It is way over bought and for way too long. It is my opinion that it will pull back some this winter. Unfortunately, when it does, it will not be by much or for very long. Assuming it pulls back in the next two weeks, I am expecting that it will only pull back as much as 7%. After that it will start to rally again. I have been hearing some unsettling things about ETFs lately, so I will just be paper trading it in the options market. At the same time I will be looking into purchasing actual gold and silver bullion.

That is my opinion, you can take it or leave it.

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