Well, I was wrong. Fortunately my bet was small and I cut it off pretty quickly and had the FB calls that came roaring back as the market rose as well as adding next week’s 130 calls when the rally picked up speed.
The internals were strong all day and even when we sold off just after noon, we never got down to worse than 2:1 up in the A/ D or volume. At the close we were 9:1 up volume and 6:1 up stocks. The NASDAQ closed at another new high and the FB, which looked like it was forming a bear flag broke out to the upside right at the close. The next high close is $130.27 and the all-time is within striking distance at $131.98. While the stock is a bit overbought on this run from 126, it could still move to 133-136. I will continue to roll forward with higher strike calls on a weekly basis.
I am also still interested in re-establishing a gold position in options. While we closed out the HL spreads, the big account still has the stock from $3.95 ($6.10) and if this current bottom in gold holds $1,300-1,320 a move thru $1,400 and beyond is not out of the question. We are in unchartered territory as it relates to the rush to devalue all the worlds’ currencies, and a no time in the last 5000 years has it turned out well…CAM
Phone: (702) 650-3000
Fax: (702) 697-8944