With Moodys’ downgrade of Portugal yesterday and news that China is raising interest rates again, the markets seem poised to give back some of its gains at the start of the session. How much the market gives back, or whether it is able to turn positive will likely have to do with the ISM services index report. The report will hit the street at 10 am eastern and should sway the markets in one direction or the other.
As the S&P500 hovers underneath resistance in the 1,340 region we think there is a nice set up for a short trade. We recommend putting this trade on via SPY put options expiring July 16 ’11. The strikes that interest us are 132, 133, & 134. We would stay short as long as SPY stays below $134.30 as this level coincides with last weeks highs for the index. The reason we like this trade is because or stop loss is less than a 1% away on the index so losses on the options would be minimal in comparison to our potential gains.
As for chat room activity we’re expecting to see a nice gap up in WTFS and we will be selling into it to lock in profits from the position we took yesterday ahead of the close. Other stocks we’re watching are SRLS, VVUS, REDF, FEGR, GLDN, AAAA, RENN, OPMG, LULU, & NFLX.
Did you know that you can watch Stockhaven trade live in real time?
Learn how to daytrade by watching someone else trade! Watchhimtrade.com is the only site that lets you look over the shoulder of a professional daytrader.
Watch this video now where he shows you how it’s possible to make 100% in just 5 minutes!
Related posts:
Pingback: Penny Stocks | Stock Chat Room | Stock Haven | Penny Stocks | Stock Chat Room | Stock Haven