Murk’d

Today hurt, as I shed a little more than five percent, I wanted to sell all day, but for some reason could not pull the trigger. I will be looking for a bounce tomorrow to unload a few positions and will be scanning tonight for possible short setups.

Early scan results point to lower prices in equities, as I am spoting great short setups every which way I look. The insurance sector looks ripe for a few shorts, just take a look @ [[AFL]] & [[ALL]]

There are a lot more where that came from, and I will be using the rest of the night to prepare for war– you should too. Feel free to post good short setups in the comment section.

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The S&P 500 is sitting on the 200 & 50 day MA, this can either act as a springboard or we could flat out breakdown. So far Woody’s golden cross prediction has yet to be confirmed, but the day is still young.

With oil breaking down, I’m hesitant to think we will snap back today. I will wait until the close before making any decisions on what to do with my positions.

Note: The transports sliced right through the 50 day this morning.

Here’s a list of positive preformers, sorted by highest volume.

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Monday:

• Walgreen WAG

Tuesday:

• AeroVironment, Inc. AVAV
• Jabil Circuit, Inc. JBL
• Oracle ORCL
• Sonic Corp. SONC

Wednesday:

• Bed Bath & Beyond Inc. BBBY
• CKE Restaurants CKR
• Darden Restaurants DRI
• Monsanto Company MON
• Nike NKE
• Red Hat, Inc. RHT
• Rite Aid Corporation RAD
• ConAgra Foods CAG
• Finish Line FINL
• Micron Technology MU
• Palm, Inc. PALM

Friday:

• KB Home KBH

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I started out this week, on the top ten video, recommending to watch the transportation index. I said that we were at a key resistance level, with the 200 day MA sitting right above it. Well, as you know, the market sold off this week and we failed to break above that level.

At this point I think we can still view the index to gather clues on future direction of the market. Currently, price is sitting right above the 50 day MA. I will be watching for a close below this level in the coming week to determine if my cash levels need to be raised.

Note: One thing we have going for the bulls is the infamous golden cross. Looking at the S&P 500, Woodshedder’s prediction may come true Monday with the 50 day MA moving above the 200 day MA. Take a look:

Note II: Have a good weekend traders, and Happy Father’s Day to all the Dads! Look for a classic iBC video this weekend.

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Over the years I’ve watched the market, I have found it’s best to sit out near option expiration (at least in my experiences). For those of you that are new to the site, option expiration simply means the day when options expire. This happens every third Friday of the month, which happens to be tomorrow.

It is a day/week where stocks are manipulated to trade near a certain strike price. The rules change a little bit, and I have found it beneficial for me to sit out during these manipulative times.

Now if your trading small caps names, chances are the opportunity will still be there to trade, but as a rule of thumb I choose to enjoy every 3rd Friday of the month away from my screen.

It’s easy to get caught up in the market as it can be very addictive at times, but sometime it’s best to do as Fly says, “Go eat a sandwich.”

And, while your feasting on a $5 dollar footlong from subway, don’t forget to pick up something special for your Father, Dad day is Sunday!

Time is a valueable thing, make sure you don’t spend it wasting away at a screen. For those fortunate to still have a father, make sure he knows you appreciate him– Life is short!

And, for those that need a stock pick, look to buy [[SIGM]] on strength, I like it above $17

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Here are my current positions, both long & short term.

[[GOOG]]

• 1st buy on 5/19 @ 395.00
• 2nd buy on 6/15 @415.00

Looking to exit position with a break below $412:

[[SIRI]]

This is one I bought for a trade after the stock took control of its 50 day moving average. I’m looking for $0.55 on this trade.

[[URRE]]

• 1st buy @ 1.55
• 2nd buy @ 1.46

I was tempted to sell this one in the am, but decided to wait to see the close. It turned out to be a good move as the stock closed strong. Still long.

[[JASO]]

Recent buy near $5 as the stock took control of its 200 day moving average. I will look to close my position with a break below the 200 day.

[[IO]]

Recent buy @ 3.20, I will stay long as long as the stock holds its trendline.

[[CAEI]]

Here is a stock I bought @ 1.73 then 1.90, I am now eating pavement with the stock trading around 1.44. I will be exiting position with a break below support.

[[LVLT]]

• 1st buy @ 1.17
• 2nd buy @  1.35

1st sell @ 1.63, still holding other half.

[[SGY]]

A core position that I’m looking to add with a pullback to the 50 day

[[SPWRA]]

Bought @ 29.29

Took off half after spike @ 32, still holding other half and will look to exit with a move below the 50 day moving average.

As far as ETFs, I’m long [[DXO]] from the low 2’s and a position in [[FAZ]] that I will never sell.

I’m very close to selling a bunch of these positions as many of them sit right near support. It should be an interesting finish to a bloody week, I hate option expiration week.

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