Portfolio Update

CPLP had a bullish day on barely more than average volume. The price movement caused the Stochastic indicator to turn back up toward it's signal line and the MACD indicator to level off. It may actually turn up but I don't think this will last.

EVEP had a bullish day on lower than average volume. The price movement was dramatic but the Stochastic indicator barely changed direction from it's downward trend. The MACD indicator, however, made a hard move up from it's downward trend. This indicator behavior, plus that the stock had a bullish candlestick move not to long ago, leads me to believe that the stock is looking to rally back to $32.50 and beyond.

SLV had a bullish day on less than average volume. The close of the day broke above the downward trending resistance line that was created at the last high it put in last week. The Stochastic and MACD indicators are trending sideways right now, and may be suggesting that SLV cold be topped out for now. What I believe will happen is that SLV will oscillate between the support level at about $17.50 and the downward trending resistance line, generating new resistance lines a few times, until the Stochastic and MACD indicators approach neutral levels again.

For a paper trades, I see a Covered Call play I want to document. The stock is ISPH, this is a pharmaceutical company. Since I am not particularly keen on pharmaceutical companies, this is the reason why I am paper trading instead of actually getting into it. Today the stock closed at $6.80 and the very next OTM Call option is the 7.50Feb10 Call. For this paper trade I am buying 200 shares at $6.80 a share and selling two of the 7.50Feb10 calls against it at $0.70 a contract share for a total cost to me of $1200, not including commission costs. [(200x6.80)-(200x0.70)=1200].

This stock has a high of $7.03. If it closes above that, I will buy back the option and sell out of the stock. However, if it drops below $6.00 I will also buy back the options and sell out of the stock. If it stays between those ranges until market close February 19th, I won't have to buy back the option and I can decide what to do with the stock then. That is my opinion, you can take it or leave it.

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