Market: still hanging in there
Last week’s relatively weak market performance did little to change the overall trend picture, which remains mixed but still has to be viewed as positive from an intermediate-term perspective. This could (and very well may) change with more market weakness, but until then I’m continuing to view the increasing number of short-term “oversold” signals on many of my watchlist stocks as enticing – and actionable – put-selling opportunities.
New positions
Last Thursday I sold some April 30-strike puts on Frontline (FRO) as it sold off following an analyst downgrade, and some May 55-strike puts on Gannett (GCI), which continues to sink with the rest of the “given up for dead” newspaper sector. Both stocks appear to be nearing intermediate-/longer-term support levels – 25 to 30 for FRO and 52 to 55 for GCI, respectively – and could be viewed as reasonable values at these levels.
Watchlist
Stocks of interest on this week’s “upside strength” scans include Allied Waste Industries (AW), Boeing (BA), Cinergy (CIN), United Parcel Service (UPS), and Waste Management (WMI). Currently “oversold” and/or “beaten down” stocks that will most certainly attract my interest on further declines include Allstate (ALL), Altria Group (MO), Aqua America (WTR), Boston Scientific (BSX), Coca-Cola Company (KO), Consolidated Edison (ED), Eastman Kodak (EK), Johnson & Johnson (JNJ), Pfizer (PFE), Telefonos De Mexico (TMX), Tribune Company (TRB), Tyco (TYC), and YRC Worldwide (YRCW).
