January 24, 2013 at 21:21 PM EST
Locking In Profits! SPX, Nasdaq, AAPL, GOOG, ISRG, NFLX, TZOO, IBM, FFIV, GMCR, ROST, FB, WLP, IOC, APA, APC
Even though AAPL dragged down Nasdaq, SPX still went up above 1500 intraday, today!  In the Trading Room, I commented: January 24, 2013 8:13 AM take it easy, not sure if the market can break 1500… I also pointed out SPX 1500 as a resistance in this week’s Market Forecast.  Sure enough, SPX went to [...]

Even though AAPL dragged down Nasdaq, SPX still went up above 1500 intraday, today!  In the Trading Room, I commented:
January 24, 2013 8:13 AM
take it easy, not sure if the market can break 1500…

I also pointed out SPX 1500 as a resistance in this week’s Market Forecast.  Sure enough, SPX went to 1502 and we saw profit-taking kick in.  SPX quickly lost 10 points in just 3 hours!  Yesterday, I also mentioned in my article that today was going to be a volatile day.  We locked in a lot of profits these past couple of days and are now back into mostly cash:

  • 08:01 | Ecstatic Plays GMCR ($44.00) Sold to Close 0125C40 Jan 40 calls, at $4.00 +190%
  • 07:33 | HappyTrading ROST ($60.65) Sold to Close 02C57.5 Feb 58 calls, at $3.50 +100%
  • 07:30 | Ecstatic Plays GMCR ($43.20) Sold to Close 0125C40 Jan 40 calls, at $3.35 +143%
  • 07:23 | Ecstatic Plays FFIV ($105.40) Sold to Close 0125C97.5 Jan 98 calls, at $8.00 +70%
  • 12:45 | Ecstatic Plays FFIV ($98.50) Sold to Close 0125C97.5 Jan 98 calls, at $4.90 +4%
  • 09:08 | HappyTrading ROST ($58.90) Sold to Close 02C57.5 Feb 58 calls, at $2.13 +22%
  • 08:56 | Ecstatic Plays WLP ($65.50) Sold to Close 02C65 Feb 65 calls, at $1.00 +14%
  • 07:12 | HappyTrading FB ($31.45) Sold to Close 02C30 Feb 30 calls, at $2.71 +20%

Aside from the above trades, I also added a trade on IBM for myself, scoring an overnight +180% profit:

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video)

In my recently published book, I shared some detailed techniques in finding trades like the above.  The intention is not only to share some knowledge in technical analysis, it is also for the members that are following my trades to understand better why I’m making certain trades, so that they will feel more confident with the trades that I publish and won’t feel like just blindly following trades.  I also have changed the way that we trade.  The high-speed trading programs out there are making things much more volatile now, and are not even reflected in the VIX.  These volatile movements are mostly intraday.  More and more people are noticing that the "smart money" trades in the afternoon.  The direction in the morning, not just on the broader market, but, also on the individual stocks, often shift and turn suddenly in the afternoon.  Often the best thing to do now is not to sit in front of the computer and watch the market all day.  If you enter a "front-month" option trade, you should at least look to allow the trade to last for a few days to a couple of weeks. 

AAPL fell more than $63 today, or 12.35%, and was still slipping this evening.  GOOG, on the other hand, continued to pop (up another $12) higher after Tuesday’s report.  ISRG also added $14, which makes a $60 gain in just 2 days!  NFLX was the king today, vaulting +42.22%!!  TZOO also enjoyed a nice pop of +24.31%.

The Dow was up +46 points; SPX added +0.01 point; Nasdaq fell 23.29 points:

GDX (gold miners) dropped 2.98%.  XME (metals and mining) fell 1.88%.  GLD (gold) slipped 1.1%, while SLV (silver) was down 2.73%.  SOXX gave up 0.88%.

SPX was basically flat, so, we’ll look at its chart on another day.

Nasdaq

Nasdaq fell 23.29 points to close at 3130.38.  It closed right at its 10-day MA.  The MACD slid.

The market now may need to consolidate a bit.  Metals and mining are starting to look weak.  Coal stocks slipped again today.  However, in the strong overall market condition that we are in, this could be the best time to look at sectors/stocks that have been lagging.  So, we will continue to keep our eyes on the coals.  Energy stocks were quite impressive today.  IOC jumped +9.56%.  APA and APC both moved higher as well.

I think after a little consolidation, this market can continue to rally higher.  So, if you’re still on the sideline, now may be the time to start looking to get back in!

Good night and HappyTrading! ™

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