Break-even:  I break-even on this trade if WSM closes at $35.40 on June 15, 2012.

Unprofitable:  I lose money on this trade if WSM closes above $35.40 June 15, 2012.  The most I can lose on this trade is the amount I paid can be worth $3 minus the price I sold it for, $1.60 for a total of $1.40.  

Reason I Like This Trade:  WSM has sold off the last 4 times, so I think it will continue.  Also, I will not lose money on this trade even if it rallies, because I am selling premium.  

UPDATE 5.22.2012  Part of the reason I liked this trade is because I think the stock market is headed lower.  I will leave this Spread on as it closed worth $1.30

UPDATE 5.24.2012  I talked about this yesterday in the LIVE trading room, I took off half the position at $1.65 and I still in the other half and it is worth $1.25

UPDATE 5.29.2012  I am glad I took half of my position off for a profit and I am leaving the other half on, but the stock continues to work higher. 

UPDATE 5.30.2012  With a sell-off in the stock market today, I took the other half of my position off at $1.35 for a net of $1.50.  Time to move on to the next trade.

Read more about total by www.keeneonthemarket.com

 I still want to see a “Panic” day of the stock market down 2% in a day and flush out some weak bullish hands.  The key levels to the downside is 1274, which is the unchanged on the year and if we take that level out then it could get real ugly.  The news out of JPM and Europe does not look as it is improving and with Facebook now under the $38 IPO price, I think we continue lower.  I do think that the stock market is oversold, but have yet to see a rally day in May when the stock market closes on the highs of the day.  This week might be a slow one with little economic data, with Home Sales tomorrow, Durable Goods and Jobless Claims Thursday, and Consumer Sentiment on Friday.

The Hang Seng index finished just below start down .16%
European begins positive with the FTSEurofirst 300 up .6%. The auto index is climbing out of its 7.7% hole from last week currently up 2.3% with Renault leading the ascend up 5.9% after being added to UBS’s key call list.
The Euro is currently down .07%.
Commodities are showing an interesting change this morning with crude, gold and silver all currently up and natural gas in the negative.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu

The story is the same in Europe where the 16 Spanish Banks, including the Eurozone’s largest Banco Santander, were downgraded overnight by Moody’s and Fitch cut its debt rating for Greece. European shares are expected to close at their highest weekly decline since November with the FTSE down 0.8% at 973.96 showing a loss every day this week for a weekly total of -4.8%.
This has put the world stocks, as measured by the MSCI Index MIWD00000PUS, down 0.85%, currently below where they began the year. This negated all the ground gained in the first quarter fueled by the European Central Bank’s creation of more than a trillion Euros.

The dollar rose to hit a four month high of 81.758 and the opposite for the Euro hitting a four month low at 1.2649.
Despite the rest of the World the futures market currently have the Nasdaq and S&P pointing toward the positive.
The commodities futures are starting mixed this morning with crude and silver down while Natural gas is basking up over 2.5% and gold also in the green.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu

Europe was battered as fears spiraled out of Spain whose bank Bankia shed over 20% today. Spain’s IBEX fell over 1.8% to its lowest level since 2003 and the FTSE 300 was down nearly 1%. Moody’s is set to report a cut to the credit ratings of 21 Spanish Banks tonight say “Expansion.”
Despite the bleak reports from abroad commodities are starting strong this morning with crude, natural gas, silver and gold all starting in the green, a welcome change.
Rosetta Genomics’, a top performer yesterday, has plunged in pre-trade this morning after announcing a direct offering of common shares at $3.50/share.

In other pre-trade news Target is trading up as Baird announced their shares look undervalued and that should gain market share from struggling rivals, they target $65/share.
The weekly jobless claims are at 370k, which is within the consensus range not a big change since the prior. Continuing claims continue their descent down 61,000 in data for the week of April 28th.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu