Market still showing strength
Except for some slight weakness in the short-term trend picture in the DJIA and S&P 500, there are still no signs (yet) warning of any significant interruption of the market’s intermediate-term uptrend. Near-term support levels are about 1390 and 1375 for the S&P 500, and 2430 and 2400 for the Nasdaq; upside resistance is about 1415-1420 and 2480-2500, respectively.
Options Expiration (Correction)
I just realized that the November 47.50 puts I had sold on Wal-Mart Stores (WMT) were exercised at last options expiration (they were at-the-money at expiration) and I had been assigned the shares:
As always I don’t mind owning the stocks I sell puts on. However, I wish I’d noticed this assignment a little sooner, especially now that the company has reported a disappointing start to the holiday shopping season. 
Nonetheless, if I didn’t own the stock I’d be inclined to sell puts against it on weakness.
New positions
Dow Chemical (DOW) – Last Tuesday I sold some December 40 puts on DOW as the stock dropped following a brokerage downgrade:
The stock still looks like it may go higher over the intermediate term, but short term it appears likely to test its near-term support at the 38-39 level. A drop down to the 35-36 level will have me selling more puts.
Watchlists
New recent additions to the “upside strength” list include Alcan (AL), Alcoa (AA), Annaly Capital Management (NLY), Associated Banc Corp. (ASBC), Constellation Energy Group (CEG), Freeport McMoran (FCX), Home Depot (HD), Progress Energy (PGN)*, and SafeCo (SAFC).
Given the market’s strength, there’s not much new to add to the “oversold” list this week, except for GlaxoSmithkline (GSK)*.
*I currently own shares and/or have an options position on this stock.
