Final Week

By: Angelo Campione | Sat, Sep 13, 2008
Print Email

9/12/2008 9:07:57 PM

The system remains in Sell mode.

Current Position:

On August 15 we sold a half position in an SPX Sep 1395(SXYIS)/1405(SXZIA) Call Option Spread for a net credit of $0.60. (This was done through Interactive Brokers, The auto trades didn't get a fill on this occasion)

On August 18 we sold a full position in an SPX Sep 1195(SPTUS)/1185(SPTUQ) Put Option Spread for a net credit of $0.90

The premium received now is $120 per $1,000 of margin required per spread.

SPX Chart - Bigger Picture

While it was a wild week, we're still in a sideways pattern. The 1240 level is holding for now.

SPX Chart - Shorter Picture

Well, another amazing week and the markets behaved like a loose canon, one thing's for sure, both bulls and bears are scratching their head at this point. Monday started with a boom out of the blocks as the Fannie/Freddie deal hinted that the worst was behind us and volumes exploded but by Tuesday, the voice of reason (or most likely fear) came in and wiped off all the gains plus some. Wednesday was breather day, Thursday was, "ok, maybe we've over reacted now" and Friday was "hmm.. maybe we can start to dip our toe in the water again".

For next week, a close above 1265 will be a positive mover in the short term and the indicators show that there's a good chance of that happening. Having said that, there's substantial resistance above 1265 and so we'll probably gyrate some more between 1240 and 1265.

Support is 1215 - 1200 and resistance is 1265 - 1280, 1240 is the line in the sand we'll be watching.

In relation to our open positions, next week is expiry and there's lots of news coming out in the financials that could be a major market mover. For that reason we may close the Put Spread depending on how we go around the start of next week. While we remain confident that the 1200 level will hold, the high degree of volatility is a risk that needs to be managed. As long as 1240 level can hold, that should be enough of a buffer to see us through.

The quote this week is from George Bernard Shaw, " When I was young, I observed that nine out of ten things I did were failures. So I did ten times more work."

Have a great weekend and feel free to email me at with any questions or comments.



Angelo Campione

Author: Angelo Campione

Angelo Campione
"Improved Speculation Through Timing"

About The Advantage Report Trader Alert:

The Advantage Report is a timing service that allows you to maximize profit in both bullish and bearish market, we have a proprietary system that issues buy or sell signals based on several algorithms.

The signals we have are:

BUY - This means go long in your desired investment vehicle.
SELL - This means go short in your desired investment vehicle.
PRELIMINARY BUY or SELL - This means be alert to a potential change of signal and be ready to take action shortly but DO NOT take action yet.
STOP - This means close your positions and go to cash

To Learn more about us: 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 © 2007-2010 Angelo Campione

All Images, XHTML Renderings, and Source Code Copyright ©