EOT Position Update – February 11, 2015
Market Snapshot
The story for US stocks so far in 2015 remains the same as it has been all year. Investors are weighing the good with the bad and stocks are gyrating up and down.
There have been six moves of more than 3.5% in the S&P 500 this year. Three have been to the upside and three have been to the downside. This price action is a clear indication of indecision among investors.
In other words, the S&P 500 is going nowhere fast.
Right now, the large cap index is sitting with a minimal gain of 0.6% year to date.
However, we have seen strength and weakness out of individual sectors and industries.
The strength is largely in sectors that benefit from cheaper energy costs, like consumer stocks, as well as energy intensive sectors like materials.
The weakness has been in interest rate sensitive sectors, like utilities, as well as sectors that have more exposure to the global economy like financials and industrials.
In markets like this that are prone to sharp moves and quick reversals, you might consider taking profits sooner rather than later. At least until the market breaks out of the volatile price channel and resumes the uptrend or begins a new downtrend.
As always, I’ve been monitoring several stocks for new trade opportunities… keep an eye on your email for a new trade sometime this week.
Let’s move onto the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. We try to focus on the positions that have some significant news or price movement.
STI April 17th 2015 $41 Calls
STI broke out above $40 last week. It ran into selling pressure above $41.00 per share. The nice move to the upside in the stock sent our call option soaring to a new high. It reached a peak gain of 196% on Friday. It remains to be seen if STI will continue moving higher without an uptick in the overall market as well. Needless to say, this has been a very successful trade. Aggressive traders should continue hold for more upside. The next resistance is at $42.50. Support is at $37.50 and $35.00.
GLOG February 20th 2015 $20 Calls
GLOG made a nice run from around $17.00 at the beginning of the month to around $21.00 per share last week. But it once again ran into selling pressure at the emerging downtrend. This stock is clearly in the process of putting in a new base. A base that I believe will ultimately lead to higher prices for GLOG. The question for aggressive traders still holding this option is… will it happen before this option expires on the 20th? The good news is GLOG is back above the 20- and 50-day moving averages. If it can get a bounce off of these support zones in the next few days, it should make a run at the 200-day moving average in the next week. Resistance is at the 200-day moving average – currently $22.84. Support is at $15.00.
Category: EOT Update
