Market picture swings back to positive
This week’s market trend picture has swung back to a positive bias, reflecting the market’s recent “noisy” week-to-week price action. As long as the trend picture is positive, I’ll give the benefit of the doubt to the upside.
New positions
ConocoPhillips (COP) – Last Wednesday I sold some September 85 calls against my long position in COP (purchased 8/20/07) as the stock continued to rally along with the rest of the oil sector on higher oil prices:
COP remains in an intermediate-term uptrend. If the stock can move above the 85 – 86 resistance level, a retest of the 90 level seems likely. Near-term downside support is at 80 – 81.
Vodaphone (VOD) – Last Wednesday I sold some September 32.50 calls against my long position in VOD (purchased 8/20/07) as the stock rallied along with the market:
VOD remains in an intermediate-term uptrend. It’s currently approaching upside resistance at the 35 – 36 level. Near-term downside support appears to be around the 32 1/2 – 33 level.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Companhia Vale do Rio Doce (RIO), Deutsche Telecom (DT), eBay (EBAY), International Game Technology (IGT), McDonalds (MCD), and Vodaphone (VOD)*.
New candidates of interest on the “oversold” scans include Alcoa (AA)*, Apogee Enterprises (APOG), CSX Corp. (CSX), General Motors (GM), Honda Motor (HMC), Lennar (LEN), McKesson (MCK), and Snap-On Tools (SNA),
* I currently own and/or have an options position on this stock.
