Portfolio Update

Today was a mixed day in the markets. The outcome for the most diversified investor would be just about even. I, on the other hand, try to be as opportunistic as I can while maintaining control. That is not saying much so I will just get into my portfolio update.

CPLP continues in the consolidation trend it has been sitting in. Today it moved up as much as 8 cents but could only hold on to 3 cents at the close of the market. The current bid and ask prices are too far apart and on opposite extremes to be relied upon. Depending on who bites first, Bull or Bear, the market could go either way. Taking into consideration, it seems likely tomorrow will be another down day. Losses are currently small.

CVX had a down day with a long shadow after a doji day yesterday. This usually means that the stock is heading down. But it has a number of supporting indicators to suggest that this may only be the negative side of it's upward trending channel. This stock requires patience and so does my Call Option on it. Losses are currently small.

EVEP had a down day, as well. This down day, however, had some action both above it's open and below it's close. With other indicators still suggesting strength is still present and the existence of a bullish trend, I have no reason to assume the worse on this stock yet. Losses are very small on this one with plenty of up potential to watch for.

FPL provided me some really good news today. FPL had another up day. It even spent a little time above the 200 day moving average. Now the move was not a large move, but because it is $3 above the $50 strike price of my Call Option, small moves produce exponential gains. So I am pleased to say that this move averages me into the green.

Next we have MU, which made a very affirmative move to the upside today. It is now over the $8 strike price of the option I sold against it. This means that if today was option expiration, I would have my 100 shares of this non-dividend paying stock assigned to someone else for $8 per share. That is okay by me as that was the plan anyway. I buy it under $8 per share to sell a Call Option against it and collect a premium, I then sell it to the Call Option buyer under market value at $8 per share even though it is worth more. The end result is they get a stock at a price under market, and I get a premium and a small profit. Win-win in my eyes.

Last we have SLV, which also had an up day although the close was actually lower than it's open. Considering the volume and the oscillating secondary indicators, I am seeing the possibility for a little bit of a drive up, but generally a pull back to about $17.50-$18 before anymore serious movement. This also seems to be the most recent trend for SLV. It may be wise for me to buy more on a pull back.

As for my paper trading, S still remains under it's defined contingency price, but PCS broke above and then closed at the contingency price I defined for it. As was stated in a previous blog where I described my paper trading strategy, I am going to record the trade as if it executed at the Call Options high for the day. It just happens that the price didn't change all day from $2 per contract share. This means I am now tracking a $5Feb10 Call Option on 100 shares of PCS for a total of $200. We will see where it goes from here. A comfortable loss is 25-30% of the purchase price. This means I am looking at a stop-limit of $1.50-$1.40 per contract share. We will see if the option drops to this.

Generally speaking, the oscillating indicators see a reversal in momentum to the up side. This suggests to me that I am likely to see more profits than losses in the next couple weeks. That is my opinion, you can take it or leave it.

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