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Trade of the Day (DELL) 5.22.2012

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Break-even:  I break-even on this trade if DELL closes at $15.45 on June 15, 2012.

Unprofitable:  I lose money on this trade if DELL closes above $15.45 June 15, 2012.  The most I can lose on this trade is the amount I paid can be worth $1 minus the price I sold it for, $.45 for a total of $.55.  

Reason I Like This Trade:  DELL has sold off 3 times on earnings and the stock looks very weak and has all its moving averages between $15.80-$16.20.  I think if it does rally then it will get selling pressure.

UPDATE 5.22.2012 With DELL selling off to $13.40 this Spread will get crushed.  Tomorrow it should be worth about $.10 or even less good for a quadruple.

UPDATE 5.24.2012  I took this trade off for $.02 and a HUGE profit.  On to the next trade.

Read more about total by www.keeneonthemarket.com

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Morning Rage 5.22.2012

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The FTSEurofirst 300 also added so far today up .8% to 983.64.
US futures edged downward after Fitch downgraded Japan to A+. Silver, gold and crude are down while natural gas is up.
Piper revoked its upgrade of Lowe’s blunder and reduced its price target to $28 from $41.
Let’s hope the injection in Greece has the expected effect.

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

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Trade of the Day (WSM) 5.21.2012

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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

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Halftime Report for 5.21.2012

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 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.