The Moskowitz Report (UCO, XLF, SPY, DECK, SAM, LMT, AMBA, ANW) - Stock Market Commentary For Wednesday, Nov 16, 2016
Well, the 50% Down rule took us out of the SPY 11/216 puts @ $ .49 this morning. Not much of a loss since it was a small position. However, I stayed with the XLF (Financial ETF) 11/22.50 puts @ $ .50 and I sold short some DECK. A look at this chart shows that this one has been all over the place during the past several years. If I wanted to use a stock to give an example of a picture perfect point and figure chart this would be the one. Right now it is within $1 of a classic “spread triple top” so risk is well defined, and it is wedged up under a downtrend line. If it starts to pull back support comes in @ $55-56, but the bottom that started this run is back at $51. Being short @ $60.90 limits the risk/reward to between 5:1 and 9:1 in our favor.
We also took nice profits in SAM 2 lots ($18/share) and LMT ($35/share). Just taking a bit off the table. Our position in AMBA is winking back to life and has recovered $4 in the last 2 days, and though I hate to be a buyer of stocks about to report earnings, I’m keeping an eye on ANW, a servicer of oceangoing vessels from bulk shippers to cruise ships at sea.
I’m keeping a close eye on our 2X levered Oil ETF, UCO. Today’s $2.50 move in the oil pushed it up $ .79 or just over 9%. Tomorrow’s another day..CAM
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