Today was a do nothing day. Up a couple down a couple finally closing with little to no change. There was pretty significant change in my current holdings based on today's price action though. Very satisfied with my perfomance today and yesterday as I will explain. I traded my plan and planned my trade. This also means that failed trades are now out of the way and that the losses are half the size of my typical gain. Since I have a success ratio on my spread trades of about 70% this will yield a net profitable trading system. I made some changes to my current portfolio based on yesterday's analysis and it proved fruitful.
The IWM closed down slightly today and is now almost right on top of the previous highs. The IWM trade was closed completely today. Closed because it had violated my level for closing the trade but did not do it enough to need a close on the short strike. Loss on the trade was about $35 while my typical gain is about $70. The bullish up trend in this symbol has not changed.
The SPY closed up slightly adding to yesterdays gains. No change in the up trend and my bullish portfolio benefited from this overall trend in the market.
My trades, particularly the bullish ones, are doing well and the analysis follows:
BULLISH:
DIA - The Bull Put Spread is a good fit for a market that does not move. Was slightly positive today and will benefit for more sideways or moves up.
GGB - This stock moved up through resistance early in the day but closed right in the range for staying in resistance. We will see what tomorrow brings.
HPJ - Continued the strong move to the upside today.
HSP - This stock did very well today for not moving. Made money specifically because the stock did not move much. Looking like it is forming a consolidation pattern which works well for my covered call trade.
LTC - This stock was a disappointment today. Still forming a consolidation pattern with the bounce. Holding as we have not crossed my line in the sand.
UUP - Closed part of this trade down to take some profits. Support still at 22.75. Stock is currently forming a bull flag.
XRT - Stock is consolidating right now. Will likely close the short call likely this week to bank some profits and allow the stock to continue its uptrend.
TEVA - This stock has done exceptionally well thus far. This symbol changed direction today and formed a bearish candle pattern. Will need a close below today's close to confirm that bearish formation. The short call is out of the money now and is back to break even. No changes in the trade.
BEARISH:
IWM - Closed the trade today. Mentioned above.
OIH - This trade was also closed. The line was crossed. It proved very beneficial considering the strength in fund today. Trading the plan is essential. Loss was about $45 right in line with the IWM trade leaving me with a solid potential if my gains on other trades continue to be consistent.
TAP - This trade had not closed above my "line in the sand". The stock reversed direction from yesterday and started the formation of a bearish candle pattern. Close below today's close will confirm this move. No real change in the trade.
NEW TRADES:
I did make one new trade based on the change in OIH. Yesterday JOYG made a nice move and I entered a Feb Bull Put Spread 48/50. The trade revolves around the recent change in oil service sector and my buy signal with price above the MA, Stochastics and the MACD confirming the move. Will close on a close below $50, if the spread reaches .08 or if the stock moves sideways and reaches the 4-10 day window before expiration. Expectation is a continuing move higher and a close within the next 2 weeks. Chart of the entry follows:
