It's easier for me to post on Facebook, so I post there more often, if you wish to follow me just join my fan page it's listed under; Michael "Waxie" Parness
Today was a total chop fest, but the market until it breaks below that recent breakout of about 1110 area is trading like it wants to go higher. We'll see, tomorrow should be a pivot day. FOMC coming up next week, so I suspect we'll chop around and stay around where we are, with an upside top around 1150 on the S & P and downside risk to about 1100, though again more then likely we'll hold that 1110 area unless news that sucks comes down the pike. So, I'd stick to buying the dip.
Today we also got very lucky. I had called CTSH few days ago for a run into earnings and we were up on it, but I had it listed as reporting earnings TODAY AFTER the close so I got a bunch of people thanking me for the play. It's nice to get lucky once in a while. The calls I think went about 200+% and I woke up and was up a nice little ka-chingo, but for the record, I rarely hold over earnings and the general rule is to sell before earnings, which was the plan.
Trading isn't a perfect system and neither is luck, I've had that happen the other way a few times in my career as well. But, its nice when you catch a little luck going your way.
A couple months ago we had DNDN calls and they went BONKERS for us, a HUGE gainer (I think it was about 500% but don't hold me to it) and the FDA approval came early and gave us a lot of the gains. I think we were up about 100% going into that, but much of the gains came after. I remember last year getting cracked on a trade involving a little company, CHTP when the same thing happened, but it went against us. That's why we try to trade using good money management skills and not try to rely too much on "news" events.
I wanted to bring it up because the "norm" plan wise is to not take that trade through earnings, it just so happens that the earnings date was wrongly posted on the calendar.
In the meantime, watch CRM for a run into earnings on the 19th, thats one I own some calls on (25 of them) and think the trend should be higher into earnings. I'm a buye ron pullbacks. I think we entered around $97 and its $101, but regardless if we pull in thats one to keep an eye on.
On August 13th we have a VERY special guest doing a class with us. Stay tuned for more details, but we are making some amazing partnerships and there are soon to be some very major announcements. If you are interested in the class its from 8:30 am EST to 11:00 am EST on Friday, August 13th...stay tuned...email me; waxie@trendfund.com
Rock on...
Michael "Waxie" Parness
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