Printer Friendly

eMail Article

February 15, 2008

15%
by Angelo Campione

2/15/2008 6:30:04 PM

Our services' net portfolio gain for 2007 was 107.8%! For a full break up of this performance, CLICK HERE.

Summary of Position Last Month

We entered a Feb 1280/1270 Put Option Spread on January 17 and received a premium of $150 per spread. This equates to a net return of $147.72 per $1,000 of margin or 14.77% after commissions for one month (using Interactive Brokers commission rates). The CBOE settlement price for the February SPX options was 1347.20.

While it was a tentative month with some wild swings, in the end the volatility was contained within a trading range between about 1300 and 1400, which had our position expire safely out of the money.

After going through our worst performance last month, this month we had our best performance on record. Life works in mysterious ways and I suppose as the saying goes, "it's always darkest before the dawn".

Current Position:

On February 15th we sold an SPX Mar 1200(SZPOT)/1190(SPTOR) Put Option Spread for a net credit of $0.80.
(i.e. a total premium received of $80 per $1,000 of margin)

Our system remains in Buy mode.

SPX Chart - Bigger Picture

From the bigger picture perspective, the sideways consolidation pattern between 1320 and 1380 is continuing.

SPX Chart - Shorter Picture

In the shorter term, the symmetrical triangle (discussed last week) seems to be shaping up very nicely for a break out one way or the other. Support remains around 1320 although 1340 is minor support now and resistance is around 1400 with minor resistances at 1360 and 1380.

This past week the upper and lower trend lines on the symmetrical triangle held, which should set up an explosive break out. For next week, a close above 1360 will be positive and a close below 1340 will be negative for the market. With only 20 points to move and getting tighter each day, there's likely be some fireworks next week and we are biased for an upside break out.

From the perspective of our new position for March, we have a 150 point buffer from any downside moves in the short term, with some significant support points underneath also.

The quote this week is from Nelson Mandela, "The greatest glory in living lies not in never falling, but in rising every time we fall."

Annual Subscription Offer

If you haven't taken up our annual subscription offer yet, you can help your monthly returns by saving 20% on your subscription fees. By taking up our annual subscription offer, you get a year's service for the equivalent of $39.92 per month (or 20% less than the current monthly fee).

Please click on this link for your annual subscription: Annual Subscription.

Please contact customer support if you have any issues at: customersupport@stockbarometer.com.

Have a great weekend and feel free to email me at angelo@stockbarometer.com if you have any questions or comments.

Cheers,

Angelo Campione

To Learn more about us at: Click Here

Not a subscriber yet? Want to be? Click here and sign up for a no cost trial. Sign up for our TRADE TUTOR weekly newsletter at no cost to get a trading education from Pro Traders.

Important Disclosure:

Futures, Options, Mutual Fund, and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

There is a very high degree of risk involved in trading. Past results are not indictive of future returns. Stock Barometer and all individuals affiliated with Stock Barometer assume no responsibility for your trading or investment results.

Copyright © 2007 Angelo Campione

Image rendition and html coding Copyright © 2000-2008 SafeHaven.com

« BullionVault.com -- Buy gold online - quickly, safely and at low prices »
« Honest Money: A History of U.S. Gold & Silver Currency -- by Douglas V. Gnazzo »

« Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. »