Portfolio Update

It was a mixed day in the market. Despite that, I made out pretty well today. Here is how I fared in the market.

CPLP, started out profitable but ended the day unchanged from yesterday's close. The volume was slightly better than average, but the price movement and the weakening Stochastic in the overbought range suggest that it is time for breather in the stock. As is going to be my way with solid dividend paying stocks, I am going to hold on to it while selling Call Options against it for as long as I have sufficient shares.

EVEP had an official bull day for a rise of 2.25%. The volume was better than average, the Stochastic is still strong though in the overbought range, and the MACD is still climbing, as well. Also a solid dividend paying stock, I am going to maintain my hold on the less than option-able amount of shares I have.

MU had a bit of interesting news for me today. I was assigned the responsibility of transferring my shares to the buyer of my options contract three days before the official day of options expiration. So, as a result, I am up the difference of $8.00-7.54 plus the premium of the option I sold (.15), less the total commissions of my brokerage firm. That is an amount of $45.46 or a fraction over 6%. Not bad for 36 day turn around. Unfortunately, I now have to remember to give "Uncle Sam" is share. If I am remembering the scale correctly, it is as much as 35% ($15.91). Oh well, that is still 3.9%. Much better than any bank. One lesson I did learn from this, though. It would have been wiser to wait a week or two before option expiration to sell the option. It would have yielded a much larger reward. So the next time you hear me selling a Call Option on an up trending stock will be after New Year's Day.

SLV had a bull day on less than average volume. It appears that it is encountering the same resistance it encountered in early November at a value of about 17.50. Despite that, the Stochastic and MACD indicators are both in the oversold range again and turning up. This is a long term value play so I am satisfied holding on to it and will continue to hold on to it. I will even be adding to my position over time.

As far as my paper trades go, some good news as well. PCS had a bull day on slightly better than average volume. This produced a gain of 20 cents per contract share to close at 2.65, and the bid is currently higher than the last trade price at 2.70. As a result I can raise my stop loss to 2.60. It may even rally higher as the Stochastic and MACD indicators are both still pointing up.

S, on the other hand, only had a slightly bull day after some early market turbulence. Since I can't tell right now, due to some technical difficulties, how bad it got during the morning, I have to go by the close which was only down 2 cents to .67 per contract share. As a result my stop loss of .60 is still in place. What I see in the stock is that the Stochastic indicator is turning back up and the MACD indicator is slowing it's decent. This could be because of the hard bounce back up over the upward trend line that I have been tracking it with. It seems the second of my two prognostications is the more likely behavior to take place.

In other news, neither JPM or PDLI broke above the downward trending resistance lines I have been tracking them against. PDLI only had a micro bull of a day on less than average volume, but could not sustain the majority of the intraday gains. As such, the MACD indicators is showing the beginning signs of reversing while still be under the zero line, while the Stochastic indicator is just emerging from the over sold range.

JPM had a slightly better bull day on greater than average volume. The Stochastic and MACD indicators are both in the over sold range but are showing signs of strengthening. I am becoming more convinced that this will be the one to profit the most as the set up is ripening for a brake out. I am thinking maybe $2 dollars worth of stock movement so I will be paper trading the $40Mar10 or $41Mar10 Call Option after the breakout occurs. That is my opinion, you can take it or leave it.

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