Weekly Trading Calls -- May 4, 2008

Overall Trading Strategy for Next Week

As I stated in my “Weekend Notes on the Market”, technically, the market should continue trending up for another 1-3 weeks at least, therefore, aggressive SW-S should be generally avoided. However, over-perusing from the long side could be risky as the major indices in overbought conditions and the big boys continue to remain on the sideline.
I started to dip my toes into the option trading swamp last week with some encouraging successes, especially with the long straddle strategy in ER plays. I will continue the exploration, but may focus more on research of such strategy to find ways to maximize the r/r ratio.

1. AGU: CTT between MA50 and the recent high, don’t trade the mid-range

2. AKS: SW-S3 if it spikes towards 68/69 again, IDS just above 71, CS just above 70, IT=MA50.

3. APA: CTT between 120/MA50 and 135/142, don’t trade the mid-range.

4. CF: CTT between 120/MA50 and 146.5/155, don’t trade the mid-range.

5. FSLR: SW-S2 if it spikes towards 300 again, IDS just above 310, CS just above 300 on bullish candle, IT=MA50/260.

6. MON: SW-S2, ez=123-130, stop just above 132, IT=108/MA200.

7. MOS: CTT between 110/MA50 and 135/140, don’t trade the mid range

8. POT: CTT between 165/MA50 and 207/215, don’t trade the mid-range.

9. V: SW-S2 if it spikes towards 87 again, IDS just above 90, CS above 87 on bullish candle, IT=MA10.

10. WFR: SW-S1 if it spikes towards 70, IDS just above 72, CS just above 70/MA200 on bullish candle, IT=56

Still working on the ER Straddle Play List for the next week.