The market had yet another “nobody bothered to show up” day. Both advance/decline and advancing/declining volume we pretty close to even. Dow down $16, S&P up $3.50. Again, I’ll mention that while there may be a tradable pull back but a solid bull market consolidation that has been occurring above the breakout at 2125 or so.
The oil had no such luck and while it tried to rally, it just couldn’t hold more than minor advances during the day and has now broken below the support I felt would at least give it a bounce around the 42-42.50 area. I sold the SCO a little early @ $102.92, only to see it climb to $112 today. Since it is a triple leveraged ETF, you can continue to trade it at any level and still take advantage of the leverage. I still think there is a rally coming, but with overnight markets, it’s just too hard to balance the risk after it rallies $20-30.
I also added to my position in FAST 8/42 calls ($.95 now $1.15) by purchasing a position in the stock @ $42.15. This is a low risk trade and when texted, I included a stop @ $41.44. This stock missed on earning last week and I think it can be bought again around $42.25-50 using that same stop.
We are clearly in the summer doldrums with not a lot of volume and more vacuums on the upside and the downside. If the stress tests for European banks come back with positive news overnight we may have another reason for more new highs…CAM
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