Short term trades in the stock market •$$$$$•

[Madrus Rose]

Yeah. We talked a good bit about High Frequency Trading in this thread. It's basically legalized stealing and it's also leading to the market cannibalizing itself. Not only has HFT destroyed retail market confidence, but it's slowly destroying the "plumbing" of the market.

On the ebullience off the IBM & eBay report on thursday was mentioning to all that push up to $138 was a definite "fade" forget the days ramp which was really low volume though offered some great bounce trades like FFIV & continuation moves for sympathy plays AMZN & PCLN plus the finsihing squeezes for CRM & VMW after VM Ware reinforced yoy outlook . CRM was already holding that lower pivot of 125 staunchly on all the down days & kept bouncing there 4-5times . Like PCLN off the 633/35 pivot .

For those interested in playing options thru earnings season so far , just as an example friday for CMG before earning the $345 puts were as low as $.15 and flew up the next day after Chipoltle Grill crashed to $36.05 on the open . Anyone holding just $150 of those turned that into $36,050 or just in one trading session every 15c was turned into $36 .

One options trade on AAPL friday if one bet it would lose momentum & that "$614" pivot again and fade the rest of the day would have offered $45,000 like this simple elegant one-day trade a fellow posted

AAPL Jul 12 610.00 Put $1.10 Limit Day BTO 100 Filled 07/20/2012 08:31:51

AAPL Jul 12 610.00 Put $5.35 Limit Day STC 100 Filled 07/20/2012 02:57:24

$42,500 profit, and it was very hard for me to commit that much to one trade, but I felt strongly about this.

some pretty amazing gains so far if you have the right reads , AAPL has had problems before at that $614 pivot (and $620) which traders have keyed off in the past , not that it cant go higher its the timing thats all . After Google got a pass Apple responds negatively for the short fade even with all the ebullience . The market sobered up on friday real quick after tagging essentially what were all time highs last spring around 1377 and the SPY on low volume hit just above $138 on thurs eBay & tech happiness .

We live via our cell phones now & owned by the carriers & cable , still doesnt put money in the bank or create jobs !


* That 614 pivot for apple you can seee on the chart also 620, i call them "memory pivots" lways good to note these for makes trading much much easier knowing exactly where stocks turn up or down .

 

[TNTBudSticker]

Nice puts on Apple...Wowzzers!

Big Drop on Apple....I'm watching for netflix to report tomorrow.Hopefully it's good.

 

[SpasticGramps]

I'm watching for netflix to report tomorrow.Hopefully it's good.

Not so hot. 15% plunge.

 

[Madrus Rose]

CMG filling in more of alot of the air underneath today losing $300, BWLD hammered while PNRA survived (hit R at 152 a/h doubl top) , NFLX CC sucked balls going to do a total reset tomorrow near 65 , now all those fades @ $85 that were working make sense .

Again the fade on the SPY from last week doubletop @ $138 pushed up on eBay ebullience was the play , was no reason for the index to be that high with the macro , sucking in lots of retail again , now looking for the 200ma , only talk of some QE by the Fed will save things ?

The engine's flooded, the transmission shot and all four wheels are flat. Sure, I'll put more gas in the tank. #bernanke #QE3 $$

$AAPL--how much conservatism, how much Samsung competition, how much European weakness and how much I-phone 5--all in play ...Samsung now the global leader in phones & smartphones , there's over 100 competing phones in China & they reported revenue $5.7B was down $2.2B sequentially there , $AAPL was expected to have 69.1% growth this year but will only deliver 43.1% instead after today's Q3 ER and Q4 guidance.

Samsung has done more than give the iPhone a run with the SGS3, which is my top choice for smartphone just for that beauty AMOLED screen. Been saying that Samsung OLED screen is just kick ass , only a matter of time peeps would gravitate to that larger screen , there were 2 bounces off 568 tnite & saw no blocks just smaller short covering , reshorts from $575 were working really should tag 560 tmorrow at least .

50ma overhead being the resistance now @ $580

 

[SpasticGramps]

Anyone remember the Greek default that saved the world a few months ago? The one after the countless number of bailouts that saved the world?

There seems to be small problem.

Troika Says Greece Needs Another Debt Restructuring Round

It has been a while since Greece made the front pages. That changes now:

GREECE SEEN MISSING EU/IMF DEBT REDUCTION TARGETS, FURTHER DEBT RESTRUCTURING NECESSARY - EU OFFICIALS

And to think all those knife catchers said the Greek bonds were the slam dunk trade of the year. All of them are about to get taken to the cleaners. As are their newsletter sales.

 

[Madrus Rose]

took $CRM out behind the wash house & gang raped it again today , after all that squeezing up to $140 on a surprise positive VMW qtr update , there was all kinds of R waiting there at $140 . Now the retest at $125 tomorrow ...

 

[Madrus Rose]

TRIP rev miss & lowered guidance losing 20% a/h caught PCLN longs leaning, looks like the consumer is caving in , buying Tempur Pedic & Select Comfort beds to hide out in (both SCSS beat & TPX squeezed tnite ) and not planning much travel trips , they just changed the name of Vegas to Lost Vegas , WYNN & LVS been telegraphing this all the while .

Coals the new RIMM , just keep falling into the pits

 

[SpasticGramps]

The carcass is starting to smell in Asia.

Kyle Bass Vindication Imminent? Largest Japanese Pension Fund Begins To Sell JGBs

Sayonara internal funding. In what we suspect will become a major issue (and warned in April of last year), Bloomberg reports that Japan’s public pension fund, the world’s largest, said it has been selling domestic government bonds as the number of people eligible for retirement payments increases. "Payouts are getting bigger than insurance revenue, so we need to sell Japanese government bonds to raise cash."

It would appear the Ponzi has reached it's Tipping Point. Japan’s population is aging, and baby boomers born in the wake of World War II are beginning to reach 65 and eligible for pensions. That’s putting GPIF under pressure to sell JGBs so it can cover the increase in payouts.

The fund needs to raise about 8.87 trillion yen this fiscal year. GPIF is historically one of the biggest buyers of Japanese debt and held 71.9 trillion yen, or 63 percent of its assets, in domestic bonds as of March.

This leaves the biggest question "to whom will the pension fund sell?" After all it is all marginal and everyone just front-runs the biggest players (Governments and their Central-Bank caring internal funds). Now that the pensions funds are out, there is no more incentive to frontrun them - a la The Fed - which is summed up by the fund's manager "There isn’t much value in short-term notes as the BOJ’s massive asset purchases have made their yields extremely low."

 

[bs0]

Nokia is the new RIMM, resistance to andriod/ios will destroy them.

 

[bs0]

AAPL Jul 12 610.00 Put $1.10 Limit Day BTO 100 Filled 07/20/2012 08:31:51

AAPL Jul 12 610.00 Put $5.35 Limit Day STC 100 Filled 07/20/2012 02:57:24

$42,500 profit, and it was very hard for me to commit that much to one trade, but I felt strongly about this.

some pretty amazing gains so far if you have the right reads , AAPL has had problems before at that $614 pivot (and $620) which traders have keyed off in the past , not that it cant go higher its the timing thats all . After Google got a pass Apple responds negatively for the short fade even with all the ebullience . The market sobered up on friday real quick after tagging essentially what were all time highs last spring around 1377 and the SPY on low volume hit just above $138 on thurs eBay & tech happiness .

We live via our cell phones now & owned by the carriers & cable , still doesnt put money in the bank or create jobs !


* That 614 pivot for apple you can seee on the chart also 620, i call them "memory pivots" lways good to note these for makes trading much much easier knowing exactly where stocks turn up or down .

So the puts on 610 were options to sell @ 610 or commitment to sell @ 610?

 

[Hydrosun]

So the puts on 610 were options to sell @ 610 or commitment to sell @ 610?

Puts are either an obligation to buy at price certain, or a contractual right to sell at a price certain.

Most likely he bought the put and had the right to sell at 610.

 

[Madrus Rose]

So PCLN got ratcheted down quickly fading from top resistance monday @ $675 down to wash out $618 on thursday with Euro worries & also aided by big AAPL miss which is directly due to Samsung more than equalizing the iPhone with the galaxy nexus & has anyone seen Samsung's newest PCs? Best looking high end, high tech , streamlined & fastest machines out there , absolutely stunning . Samung is fiercely thinking outside the box . Iphone doesnt compete either with the Galaxy OLED larger screen , imo and Samsung is now the undisputed leader in smartphones in the world.

 

[Madrus Rose]

Puts are either an obligation to buy at price certain, or a contractual right to sell at a price certain.

Most likely he bought the put and had the right to sell at 610.

That was the day AAPL hit that 614 previous resistance & faded fast from there, think they had a clue AAPL would come in light? Everyone of the bulls got caught lening on that miss.

One thing curious about last week is how GS not only held the low pivot in the channel & bounced off $91 monday but thru everything last week had all green days in a row. Think they knew & were positioning for some ECB news which started to rumor late day weds & then full force announcement late day thurs? Dam sure they did , the pros had wind of this & were positioning ahead .

So PCLN got taken down quick from 675 resistance to 618 washout on thursday after AAPL miss tanked the techs . All were thinking AMZN would miss by the way it was trading and fades were working like charms . Want to see how things change quickly , PCLN loses 628 support & gets the quick 3 red exhaustion bars down to 618 where you have to think short covering which did come in . But later that night EXPE comes out & blows away earnings and AMZN gets the huge pass plus they break the ECB /Draghi rabbit out of the hat late thurs afternoon . This shouldn;t have effected smart shorts for pattern was shorts good in the am then late day covering since shorts working so well .

PCLN 665calls from $0.05 to $20 in 24hrs ( or $50 to $20,700)

There were some that believed strongly enough in PCLN surviving & regaining 665 again with an EXPE /AMZN beat that night they were buying 665calls thursday am which hit low of 5c & next day flew as high as $20 ! This was one of the most insane options plays in quite a while as PCLN tagged 688 the next day , where just a $500 investment would have generated $250,000 in just 24hrs . How many calls could you buy for a nickle or 20c ? <ggg

This is earning's season , AMZN hit lows of $204 a/h and we all saw what it did the next day , PCLN was absolutely the most insane play from 675 down to 618 (imagine the puts there ) and up to 688 the next day , calls leaping into the stratosphere . Who knew , but watched one old retired Market Maker make the call weds & cooly do the trade in real time thursday am, then sold his calls friday am a little too early for only $45,000.

(His total investment i think was $220 for the calls, absolutely stunning trade, planned in advance of EXPE/AMZN earnings )

 

[bs0]

That was the day AAPL hit that 614 previous resistance & faded fast from there, think they had a clue AAPL would come in light? Everyone of the bulls got caught lening on that miss.

One thing curious about last week is how GS not only held the low pivot in the channel & bounced off $91 monday but thru everything last week had all green days in a row. Think they knew & were positioning for some ECB news which started to rumor late day weds & then full force announcement late day thurs? Dam sure they did , the pros had wind of this & were positioning ahead .

So PCLN got taken down quick from 675 resistance to 618 washout on thursday after AAPL miss tanked the techs . All were thinking AMZN would miss by the way it was trading and fades were working like charms . Want to see how things change quickly , PCLN loses 628 support & gets the quick 3 red exhaustion bars down to 618 where you have to think short covering which did come in . But later that night EXPE comes out & blows away earnings and AMZN gets the huge pass plus they break the ECB /Draghi rabbit out of the hat late thurs afternoon . This shouldn;t have effected smart shorts for pattern was shorts good in the am then late day covering since shorts working so well .

PCLN 665calls from $0.05 to $20 in 24hrs ( or $50 to $20,700)

There were some that believed strongly enough in PCLN surviving & regaining 665 again with an EXPE /AMZN beat that night they were buying 665calls thursday am which hit low of 5c & next day flew as high as $20 ! This was one of the most insane options plays in quite a while as PCLN tagged 688 the next day , where just a $500 investment would have generated $250,000 in just 24hrs . How many calls could you buy for a nickle or 20c ? <ggg

This is earning's season , AMZN hit lows of $204 a/h and we all saw what it did the next day , PCLN was absolutely the most insane play from 675 down to 618 (imagine the puts there ) and up to 688 the next day , calls leaping into the stratosphere . Who knew , but watched one old retired Market Maker make the call weds & cooly do the trade in real time thursday am, then sold his calls friday am a little too early for only $45,000.

(His total investment i think was $220 for the calls, absolutely stunning trade, planned in advance of EXPE/AMZN earnings )

But had it not gone in the right direction he may have owed $45k right? Those options are an obligation right?

 

[Hydrosun]

Nope he bought the calls therefor he owned the right to buy the stock at price certain 665, and could instantly sell to the market at 688 in this example. If the price fell he would have lost his entire $220 bet but that is all.

 

[Zen Master]

I really need to learn more about options.....

 

[Madrus Rose]

But had it not gone in the right direction he may have owed $45k right? Those options are an obligation right?

No , thats the beauty of options as Hydrosun pointed out , you are only out the cost of the contract (s) . Last earnings season just before the market tanked in May , watched a fellow that specializes in options take $2k & turn it into $250k in 3wks posting all the trades in advance . So you can get started with very little money , as low as $2k with a small options acct & still be able to turn large profits .

The same fellow called for the LNKD pop this thurs , tho have to remember it had tanked also from $107 down to $92 so its a matter of market timing but LNKD payed off well squeezing to $107 friday from $91.75 low previous day .

Friday after the LNKD earnings beat thurs evening , the $FB 21 Calls went from .03 to 1.20 a 40 bagger in less than 2 hours after it finally got a mini short covering rally , these are some the option plays that pay off big , if you are patient & position just right .

 

[kaka_]

Just kind of making a post here so I can find the thread for later.

If you want to play with some medical marijuana penny stocks check out CBIS and MNJA. I had a real nice trade on cbis a few months back but its kind of in the shitter now. Still have a bunch of freebie shares in my account I'd love to unload at a higher price soon.

 

[bs0]

No , thats the beauty of options as Hydrosun pointed out , you are only out the cost of the contract (s) . Last earnings season just before the market tanked in May , watched a fellow that specializes in options take $2k & turn it into $250k in 3wks posting all the trades in advance . So you can get started with very little money , as low as $2k with a small options acct & still be able to turn large profits .

The same fellow called for the LNKD pop this thurs , tho have to remember it had tanked also from $107 down to $92 so its a matter of market timing but LNKD payed off well squeezing to $107 friday from $91.75 low previous day .

Friday after the LNKD earnings beat thurs evening , the $FB 21 Calls went from .03 to 1.20 a 40 bagger in less than 2 hours after it finally got a mini short covering rally , these are some the option plays that pay off big , if you are patient & position just right .

Where did you read these? Been doing a lot of reading lately and love more information.

 

[Madrus Rose]

PCLN ....Did Priceline bite the dust tonight or what ? Down almost $110 at one point from $680 testing long term support on the weekly @ $565 which was also good for a 17pt bounce . Well if you had 500shrs short into the close you made $55k in 15mins on Priceline !!

RAX ESRX some winners , CMG getting a bounce with VVUS & NFLX but LNKD sold back down after earnings beat from $112 on valuation & FB pulling back down still overvalued piggie .

SPY hit a fade pivot at 141 & AAPL pulled back from 625 , GOOG also fading from 650 both key pivots for those two while IBM flirts with $200, pretty standard proftaking pullbacks after this bums rush on Fed & Euro stimulous hopes

One hell of a good month for BIDU afer getting flushed to $99 now up 30% in 20days to $130 and little chinese dragons SINA DANG YOKU etc got some good bumps after some good reports from SOHU & CYOU monday