Portfolio Update

Due to some bad weather in "Sunny" South Florida, this post was put up late. It does, however, reflect my experience, observations, and thoughts on Thursday, December 17, 2009. That being said, the market had a horrible day as the Dow dropped almost 133 point and the majority of the other indices also dropped. With a day like that, it is hard to expect anything good out of my own portfolio. This is how my portfolio fared.

CPLP had a slight bear of a day as it first attempted to break $9, but proved unable. The volume was under average, and the Stochastic and MACD indicators are suggesting that the stock is losing momentum. It is very likely that CPLP will be turning back towards my entry point as the sideways movement it did two months ago is not the norm. But because it has a strong dividend, I will continue to hold it with the expectation that it won't slide back as much as it gained since I got in. I would like to sell a Call Option against it on the decline, but the "market maker" doesn't seem to be issuing any options at the $9 strike price for CPLP. If anyone got in when I did, now would be a good time to lock in profits if quick capital gains is your only concern.

EVEP also had a slight bear of a day as it pulled back under yesterday's close after first gaping up. This move was on slightly greater than average volume and is causing the Stochastic and MACD indicators to lose momentum. My opinion of EVEP is the same as it of CPLP. It has a strong dividend so I am holding on to it. Since the quantity in my position is less than the requirement for an option contract, I can not sell against it. I will try to add to it on the next bounce.

SLV had a solid bearish day in the market. On less than average volume it slipped down over 3%. With the stock market indices dropping in value, the commodity down over 12% from a recent high, and the Stochastic and MACD indicators in the oversold range, it is unexpected to see such behavior, since this is actually the best time to get into a commodity equity with hedging value. I can only speculate as to the reasons why, and I refuse to speculate.

As far as my paper trading is concerned, there is more of the same. PCS and S both slipped in value. So-much-so that both of the stops I called yesterday would have been executed had these trades been real. So I am out of PCS at $2.60 per contract share for a profit of $60, and I am out of S at $0.60 per contract share for a loss of $35. That is a net profit of $25, not including the deduction of would-be commissions.

In other news, JPM also continued to pull back, so I continue to wait for it to break out from it's extended oversold condition. PDLI, however, made an attempt at closing above the downward trending resistance line I am track it with. On slightly better than average volume, it actually survived the day and closed just barely over the resistance trend line. This however, can not be relied upon due to it being a very marginal success. It will have to do better tomorrow. A close of $7.00-$7.25 is what I am targeting. If that is a success I will log a trade into the $7Feb10 Call of PDLI at the last option price. That is my opinion, you can take it or leave it.

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