Wednesday, April 30, 2008

Some Trades

Just an update from some account moves I made today. Loaded up on COF puts today. The stock itself is a good short for fundamental reasons (analysis on that coming later this week) but also for technicals. There is a ton of recent resistance at $54-55, and then right above that you've got the 200 day moving average. And then, even further at $57.5 there is a double top in terms of most recent highs. So, basically you can pick up some puts (June 40s is what I got into) and then stop out if the stock trades above any one of those stops... just use what degree of security you want in terms of loose stops or conservative ones.

Also, been long MA for a while now. This is almost a pairs trade with COF but I never intended it to be haha. Anyways, took profits on MA today and will look to get back in here on the pullback, as I'm expecting the breakout-pullback scenario with their big earnings gap up. The transition from cash to plastic is a very real story, especially in other countries who aren't as reliant on plastic (yet) as the american consumer is.

Last idea I've got (and I'll analyze this one this week as well) is to short GLD if it closes below $86. That's the support line if you check out the chart and its my line in the sand. There are some fundamentals playing into this trade as well. Stop out if it trades above $86.50-87 (this stop kicking in of course *after* the stock has closed below 86 and initiated our short).