Market Curiosity: Exploring Markets And Systems

January 24, 2011

Watching CAT channel – now broke out and up +3%, -1%

Filed under: +0 to +5%, -0 to -4%, Long Calls, Short Calls — Tags: , — Jeff Fitzmyers @ 12:00 pm

+ The daily CCI is about to cross above the weekly CCI.
+ The weekly CCI is starting to turn up.
– The daily RSI was recently above 70 and the weekly RSI still is. This is not a momo stock and yet that
+ Still above the up trend line.
+/- The experimental Gann 60 day cycle line is coming due. Will price leave the channel?

Jan 19th: Sold Feb 90 put for $1.16. Bought May 95 calls for $5.95. (I was late to the party.)

+ Pretty good breakout volume.
+ Daily CCI just crossed over weekly CCI.
+ Price did not wait until it went sideways to the up trend line, nor the 34 EMA. An indication of strength?

Jan 19th: Sold at $6.15. +3%. Price stayed near the high for a while but is slipping. If the market keeps going down, odds are CAT will at least drop back into it’s channel. Can always get back in. Keeping the puts for now.

Jan 24: Covered the call at $1.15. -1%. Just don’t want the exposure right now.
– And the retest of the channel turned out to retest the bottom channel. Not ideal, and now’s the time to take profits too soon.
– I wonder if price just does not launch to the downside. Actually, because of all the support with the 34 EMA, cannel bottom and big candle up (so far today), if price closes below 92, that would be a big sell signal.

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