Late Day APPLE Breakout..

I've been finding out that when I do my daily activities and come home around 2:00 during the afternoon, I haven't been glued to my screen all day searching for trading opportunities and I don't really have a bias to to whether the market is going up or down. This past week I've made some very profitable trades coming in late and reading my charts and volume trends. I always notice there is a sell off before lunch usually because traders don't want open positions while they are stuffing their face with caviar and champagne. After the noon swoon, as Dr. J, from OptionMonster.com calls it buyers usually kick in and buy into the mid or late day session (usually, not counting every day).

There are great trading opportunities when you see a stock testing it's day high on good volume, and keeping up near the top. All you have to do is watch the major indexes and if they follow suit and break higher then your stock should immediately take off, no hesitations, because that means buyers aren't prevalent and sellers could take over considering it's at the day high, and all your longs are now green.

Todays trade:


I grossed $363 on the trade scaling in on 800 shares and scaling out for a quick trade. Remember watch that volume, it is key!!!

Quick Scalps

The market sold off in the last Hours of Trading, so I decided to short the most volatile stocks as they would not hold up under market pressure.
In my observation the DOW Jones Industrials were leading the way today, as they sold off so did the other indicies.
The NASDAQ seemed to be down the most on a percentage basis, so I shorted Apple, and RIMM in the last half hour for quick scalps, in and out.


Today's Total: $500.00 even in 30 minutes, I'll take it.

Apple Short:



RIMM Short:

RIMM Hits New Highs

courtesy of www.zacks.com

Original article can be found here.
5/22/07 2:44:25 PM
Research in Motion (RIMM) High on iPhone? -
Checking in on today's list of newly-tagged annual highs for Nasdaq-traded stocks, Research in Motion Limited stands out as the biggest point gainer. The Blackberry maker saw its shares peak at $159.57, though there aren't many headlines to explain today's jump. Over at BloggingStocks.com, Brent Archer suggests today's rise can be chalked up to a competitor's product offering - Apple's yet-to-be-released iPhone.

Archer suggests that RIMM's Blackberry is a cheaper version of the iPhone, and consumers seeking to upgrade their mobiles may favor the tried-and-true Blackberry name, and wallet-friendlier Blackberry price tag, over the pricey-and-unproven iPhone.

It's an interesting theory, especially in light of the fact that Apple also appears on the list of stocks hitting new annual highs today. (That terrible noise you hear is the sound of Mark Fightmaster's teeth grinding.) However, it's true that RIMM has strong technicals to back up today's surge. The shares received a boost upwards from a bullish cross of its 10-month and 20-month moving averages last August, and has maintained its position above those ascending trendlines since. Support at the 120 level has also held firm since late last year.

With 13 "hold" rankings from various brokerage firms, RIMM also has a lot to gain from potential upgrades. Look for RIMM to rise again if Apple's latest "i-" offering fails to captivate consumers.

WIRE Buy Point

WIRE, sitting on 200 Moving Day Average, Resistance turned Support, Nice entry point.

Trading Apple Options

Today I hit a double on the AAPLE MAY $105 CALLS, buying in at $1.42 and selling out at $2.85. what a ride it was! I knew the consolidation mid-day was just masking the ultimate breakout we received after the FOMC announcement. There was a pullback towards mid-day support and it didn't break that level, so I knew the buyers weren't panic selling.



100% Gain in 2 trading days
CalTrader

Chart Reading...

Fed meeting is coming up and equity investors seem like they're in the duldrums. We sell off in the morning and catching a market hiccup only to head higher and close almost unchanged 3 points.

Let's look at some charts and see what they have to say...
What's been on my mind lately is Research in Motion (RIMM), this stock has been on a tear these last few days. I have a few theories from news events and market conditions. Initially I expected RIMM to tank and touch down on some serious support, but then the NASDAQ had been up 8 points here, 16 points there, so of course RIMM will follow suit and advance higher. First off the Canadian market has been up, and RIMM being a Canadian stock will be lead by the sentiment. Also, Motorola (MOT) failed to accept Mr. Billionaire Investor Carl Ichan as a board member who would try to turn things around for the best. This indirectly affects RIMM because it means less competition, and therefore more sales.



It is approaching 52 week high levels at this point, in which it has always turned down. I would wait to see if it breaks out above this $147.50 - $148.00 level. If it fails to breakout, it would make as a prime SHORT canidate, especially if the market gets a nice pullback. Add it to the watchlist.

OIL! Very weak, as of late, but of course the conspiracy behind Nigeria and the terrorist attacks driving the prices higher, hm now I wonder if they get long oil futures in a highly funded brokerage account before they hi-jack rigs, and set off bombs on oil fields? I guess we'll never know! But the world sure does know about the couple in Hong Kong that profited $8 million USD from the Dow Jones (DJ) Deal!! The SEC has frozen their accounts, big whoop, it's RED CHINA! Give up!

Here are some of the oil, and energy stocks I'm watching, look at which are hanging near their moving averages and which have pulled substantially higher!



Peabody Energy (BTU) has a short term chart which in my opinion you could short the pullback before you buy on weakness and put on a longer term position. One would be looking for BTU to take out that almighty $50 level in order to advance higher. Check it..

Back With A Bang!

Today was a great full day of trading multiple contracts on different entities. First, I noticed the lack luster strength in the DOW this morning, and watched oil closely. One thing I notice with oil is that there are tremendous swings. It will go up and up and push higher than you ever thought oil would go, and then rapidly descend during the afternoon. I have heard of many fortunes being created through the trading of oil and it's counterparts.

Research in Motion (RIMM) was also being stalked by me today as the Upgrade this morning can cause a significant GAP UP, and any weakness will make it fall like a knife, as it did when it hit resistance twice today..

I originally decided to roll with the RIMM - $125 MAY Put option, but it wasn't responding enough to the price fluctuation, because it was so far out of the money and the delta was only a -18.0 vs -35.4 with the $130 MAY Put option. I bought the $130 Put option after realizing this and thus, created a Vertical Spread which I exited 1 leg at the end of the day for a 20%+ gain. Amatuer, I know, but I caught it, and was very profitable.

I love buying RIMM Puts, I've seen them double in 1 day in my portfolio. Who else in the world can show you how to double your money in 1 day? I don't know of very many sources. Hm, Las Vegas? Go for broke!



I also cashed in on my Chesapeak Energy Calls in which I bought nearly 4 months ago, mentioned here Long Term Oil Calls. I bought the JULY $30 CALLS @ $1.85 and today I sold them for $4.6, a 140+% gain in 109 Trading Days.







More to Come!
-CalTrader