Portfolio Update

The day before thanks giving was a baby bull of a day. The majority of the indices took a small step forward, with only the Small Cap index taking a step back. Also being two days before Black Friday, a lot of the gainers were in the retail sector. This is probably because a speculators were taking positions in expectation of consumers finally loosening the purse strings so that they can reap the benefits.

So how did I do? Well, things are getting better. All but MU went up, and I am considering which Call Option to sell against it. But I'll get to that later.

As CVX has gone up, my Call Option on it has also gone up. However, it is still not yet profitable. The volume has been light on these gains, and it closed at the resistance line of it's current upward trending channel, but investor strength seems to be increasing. It is very close to breaking through $80 which is a price it hasn't seen for months. Since this is the third and final vacation season of the year, I am maintaining my hold on the Jan10 option. But I probably won't hold on to it past the December expiration.

FPL has become a profitable Call Option for me. As I stated when I got into the position, the winter season tends to be profitable for it. If it continues like this through the December expiration, and maybe through New Years, the statistics will have prove true. Unfortunately, it still has not officially broken it's down trend. It currently sits at the resistance line, of the downward trending channel. I am waiting in expectation of it closing well above $52.40 by Friday or Monday. This will officially end the down trend and confirmed a new up trend.

My position on the Silver ETF, SLV, had a profitable day. However, I have growing concern that it will be pulling back to $17.50 before it ever moves above $19. This is based primarily on the appearance of four indicators: Bollinger Bands, Stochastic, MACD, and Volume. All four suggest that the current trading direction is loosing stem. I will keep you posted.

As mentioned above, MU is the only stock in my current portfolio that didn't make gains. However, it did remain above the trend line that it broke above the day before. Another however is that the high of the previous day now indicates new resistance for it to break above. On the same pessimistic note, the momentum indicators of Stochastic and MACD suggest negative momentum has taken hold. I am considering selling the 8.00Dec10 Call against it to pocket $9.40 now and the maximum potential gain of $47 by the December expiration. I know it isn't a lot, but I am not fond of non-dividend paying stocks. So this strategy is fine by me.

As a final note, I am going to declare my next three trades. Two option paper trades and one official stock trade. First, if S has a high greater than 3.95, I will "buy" the 3.50Feb10Call at the high of the day. Second, if PCS has a high greater than 6.66, I will "buy" the 5.00Feb10Call at the high of the day. Third, I have put in an order to buy 100 shares of CPLP, a dividend paying stock in the Water Transportation group that is beaten down. I will also be selling options against it after I officially have a position. There is, however, an issue with the order. The current Ask and Bid are extreme. In regards to buying, the Asking price is currently at an obnoxiously high price. As a result of this, my order may get rejected as soon as the market opens on Friday. Fare warning for anyone that may be following me. That is my opinion, you can take it or leave it.

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