PPDT - XLF = 14.54 - 11/01 Monday

[abdogman]

sideways xlf 14.67 on 1m

[Rich]

I just wanna know, who made the ism mistake?

[Rich]

spx pausing at the 1195 area, see if it gets a second breath.

real estate, no pause as with other indices.

[abdogman]

xlf 14.65 on 1m BB's spreading slightly

[abdogman]

xlf 14.67 and macd almost positive

[abdogman]

macd is pos on 1m xlf fas
BB's spreading
xlf 14.69 on 1m

[elle]

this nice to wake up to - plus halloween over (I don't like halloween) - be back after make coffee

[abdogman]

BB's narrowing on 1m xlf fas
macd neg now on 1m xlf fas
xlf 14.675 on 1m

[elle]

okay, lightened jrcc a little, but it is in b/o and not stopping here, earnings Thurs
other positions are up, but so-so

[abdogman]

BB's spreading again on 1m xlf fas faz
xlf and fas on bottom band
xlf 14.65 on 1m

[Clinton SPX]

Huge sell vol spike on futures

[abdogman]

macd now + on 1m xlf fas
xlf 14.675 on 1m

[abdogman]

BB range on 1m xlf 14.6907-14.6433
macd just neg on 1m xlf

[kbk3ck]

Got 165 TYH at $40.75. Shoulda waited.

[abdogman]

uup=22.43 on 1m

[elle]

we didn't take out the 10/25 h, so that is unfortunate

C 1199.50, F 1202, new C 1207

[abdogman]

BB's spreading on 1m xlf fas faz
macd still neg on above
xlf 14.63 on 1m

[elle]

options traders:

not that exp at options, but want to check on a plan
if I buy really cheap calls .05 @ strike $20 (currently 17.60), then should short at $20 and exercise if moves against me? or is better to sell calls when in the money? they are nov calls

[elle]

if anyone in jrcc, pm me

[abdogman]

BB's narrowing slowly on 1m xlf fas faz
macd + on 1m xlf fas
xlf 14.64 on 1m

[abdogman]

Dogs and Lunch Gang ......back as usual ....Good Luck!!

[deadmoney95]

Carl F update:

4.bp.blogspot.com/_sL6ril9lDkw/TM7mpT_KLGI/AAAAAAAACcA/Bpp2iYqNLOU/s1600/101101+1210+am.jpg

Here is an hourly chart showing 24 hour trading in the e-minis. As you can see the market has been trading sideways for nearly three weeks now, a very unusual situation. I think this sideways action is about to end. My best guess is that the market will drop to the green trend line I have drawn. This is at roughly the 1175 level now. After that I expect a strong move that will take the ES above its April top at 1216.

I think the likely election results have already been priced into the market. But I think the major uncertainty now won't be resolved until 2:15 pm on Wednesday when the Fed announces the results of its meeting. If it shows determination to continue quantitative easing until normal economic growth is restored I expect the a positive response from the market. Anything less would probably kick off a substantial break.

[elle]

hoping for b/o bfr, been up here over and over, so last chance I'd think

[elle]

1193.12 weekly 200, I think that's the story (20/50 cross this or next week or b/t is at 1148

[elle]

bfr has run a long way, but I think it is sig that will have a monthly 20/50 cross probably this month, 1st time 20 above 50 since 2005 - I don't usually deal with time frames this long - anyone?

[ccash04]

Nov 1, 2010 10:41:26 GMT -5 elle said:

options traders:

not that exp at options, but want to check on a plan
if I buy really cheap calls .05 @ strike $20 (currently 17.60), then should short at $20 and exercise if moves against me? or is better to sell calls when in the money? they are nov calls

Hard to say but if you buy @ .05 and it goes to $20 you should sell your calls b/c you would have made a boatload of money off of them more than likely lol. Hard to say depends on what you want to do and anticipate the stock going.. Sometimes selling a call spread when it hits your short point can be very profitable b/c of less than favorable margin requirements on selling calls naked.. I.E. stock hits $20 and then sell $20 call for $1.5 and then buy $22.50 call for .50.. This would yield $1 credit and margin req'd would be $2.5 for each contract.. Thus you could sell more than if selling the call naked...

[elle]

that was a super answer, will take me some time to digest, but greatly appreciated, exalt

calls coming to life with this run-up today, I can only play them when they are that cheap - I think maybe I am not scandinavian squirrel, but scottish squirrel

[ask2lern]

From www.optionmnster.com ..........................................GLTA

S&P shows decline in momentum
November 1, 2010 Mon 11:08 AM CT


The markets face some interesting news this week that has been anticipated since the end of summer. The midterm elections will come tomorrow, with details on the Fed's quantitative easing program the next day.

Ahead of this news stocks have rallied significantly off their summer lows but, at the same time, the S&P 500 has shown a decline in upside momentum. The chart below shows the year-to-date action in the index, with a momentum indicator in the lower panel.



Given how painfully slow the rise in the index has been in the last couple of weeks it is perhaps not surprising to see momentum drop. The moribund performance of the financial stocks has helped to keep a lid on the upside, while traders have overweighted technology and industrial names.

That has led to plenty of new 52-week highs, which is usually a sign of technical strength. However, the divergence between new index highs and declining momentum is troubling. The last time we saw a similar negative divergence was in April, leading up to the year-to-date peak.

Looking beneath the index data itself, I took a look at how many stocks hit new 52-week highs last week in the S&P 500. As it turned out, the number was remarkably high, at 126. Today, however, only 56 of those names were last above or at that high area.

This is a potential warning that the stocks traders have been chasing for weeks have reached a stalling point. If we were not faced with the uncertain news and potential reaction to it this week, this would classically be seen as a buying climax: Highs that don't hold can be warnings of over-extension.

It by no mean indicates disaster ahead. But these technical conditions--a stall in index momentum and a failure at fresh highs--are usually harbingers of a significant correction.

(Chart data provided by Thomson Reuters)

By: Bryan McCormick

[ccash04]

Another thing to consider is not going that far out of the money, OTM, as its a super-directional play and it loses value quickly if the underlying asset's price goes the other way. Spreads alleviate some of this by selling some of the volatility and time decay. Also, selling puts or put spreads is another way to take advantage of a upward move while still being slightly neutral on volatility and price action.

[ask2lern]

Kinda busy here at the office..............have had 2 sucessful SPY PUT trades.................current SPY #'s I am watching....S 118.65 PP 119.18 R 119.60...........................GLTA