Wednesday, June 27, 2007

 

Buy - 1 RIG Aug 95 Call @ 12

My old friend RIG might bail me out of my misery of my last few trades. Bought it around 105, which acted as support, after it broke past it and then pulled back towards it. The late day rally in the market as well as oil definitely helped it along.

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Comments:
AJ,

what about puts? i seem to hav the saMe buy high sEll higher mentallity but what about to the down side? just instinct right now? think FSLR might hAve room down sOon?

j.M
 
Hi j.M,
You'll need to draw out well defined support lines on a chart. Usually after a support is broken, the stock might try to rally back to the line of support, if that acts as resistance, then you know that you have a pretty good entry for a put. I tried to to this with CTX, I waited for it to touch 41, which looked like resistance to me, I bought it on the way down. (although it did reverse)
In the case of reversal, your only safety net is a stop loss.

A couple of examples - BZH, if you look at the 6 month daily chart, 32 looks like support which was broken, but the stock did try to retest it and failed. That would have been a good entry point.
Another one is JCP, i think it will be a good short if it tries to test 75 and fails.

Good luck!
AJ
 
j.M,
And regarding FSLR, difficult for me to call a top on this one. It's broken out of a sideways move that it's had the past couple of days. It has a lot of momentum at this time.

Be careful trading this one.

AJ.
 
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