Archive for the 'Watchlist' Category

Options trades: Naked puts in RIG & BSBR

This past week I took profits in a couple of existing short put option positions – one in a Brazilian bank and the other an oil driller – as their remaining option premium had dropped to almost nothing (see below). I’m still short some later-dated naked put options in the oil driller – a major […]

Market still hasn’t tipped its hand

The market still hasn’t tipped its hand on whether it’s currently basing at these levels – above the recent lows – before moving higher, or consolidating before moving lower. If the market does move lower in the near term – amidst high bearish sentiment and still extreme oversold technical conditions – it would very likely […]

Market bottom in for now?

Coming amidst extreme bearish sentiment readings and oversold technical levels, last week’s positive market price action suggests that an intermediate-term bottom of some sort may be in place. Whether this proves to be consolidation in a larger decline, or something more bullish remains to be seen. New positions Southern Copper (PCU) – On Thursday I […]

Heading toward 2002-2003 market lows?

Market sentiment and technical oversold levels remain at extreme levels, and positive divergences may be developing on the most recent price weakness. While these continue to suggest potential signs of a near-term bottom, continued weak price action is indicating that a move to the 2002-2003 market lows – about 7,200-7,500 for the DJIA and 770-800 […]

Market bottoming or consolidating?

Last Thursday’s retest of the recent market lows suggests either consolidation in the downtrend or a potential bottom of some sort. Considering the continuing high current levels of bearish sentiment and oversold technical readings, the odds seem high for a sideways or upwards bias, while a move to new lows in the near term would […]