Friday, November 20, 2009

The Daily Note - Opex

I will be posting my random thoughts for the day, here, along with some significant calls that I may see.
Today is options expiration day which usually means small tight moves with volatility. Rather frustrating for traders, Of course it's also the week before Thanksgiving Holiday which makes it more interesting as many will be taking next week off. Certainly there are not many more days left for the opportunity of repositioning, profit taking and shedding. Keep all of this in mind during slow, unpredictable, whippy moves in the market because you still have to remember that we are most likely topped on the DJIA and therefore a descent of several days is likely going forward. Good luck in the markets today.

BIDU is vulnerable to rumors, either tech, economy or rivalry. The stellar rise itself is enough for it to become a target and inot many will forget its fantastic descent last fall. We may experience similar volatility in the coming weeks.

Short below $426 to near $424.50, breaking below $424 to near $422 and dropping below $420 would open BIDU up to the possibility of $400. Long above $429 to near $431, the $432-$433 area and as high as $435


MA My last words on this were that it's vulnarable below the $229, small dip and a recovery to near $230 did not convince me. When MA moves, she likes extremes; witness yesterday's recovery and descent. She also carries a rather snappy whip, so the caution light is always on.

Short below $229 to near $227 the near $226 and furhter to $224. Long above $231 to near $233-$235 with high volume.

IPI is a slow mover, as called a couple of days ago, it is still oscillating around the same pivots. On a strong correction day like today, it did not effectively move off positions. Let's see if it can in the coming days.

LONG above 29.25 to near $30 then toward mid to near $31. Short below $29 to near 28, breaking down to near $27.60 and lower possible to $26

RIMM has been taking a beating and now finds itself at a precipice. It's been here before, yet before the market was not. Now, it has the market sentiment which may help it down to fill the gap. It won't be an easy road, as many may find the price very attractive, ye to fulfill it's destiny, it may need to finally close the gap before it can start it's climb back to it's old glory.

SHORT below $58.50 to near $57.80, lower to $56.60, then $54 areas. Breaking $54 will probably dive it to near $52. $49 will fill the gap. Yet I'm not sure this is a one day move unless there's a severe crash. Also remember it's options expiration so, severe moves tend to be less likely. LONG $59.50 to near 60.40 area, higher if it breaks $61 to above $62

Happy Trading, Living and Dancing