PeakTrader.com

[arthur]

Aug 10th Trading Log (Recap and Wed Trading Plan):

Recap: I sold 300 QQQ calls on bounces, bought DIA puts on a bounce, and bought AMGN calls on a dip. SMH didn't rally much. So, I bought DIA puts to partially hedge the SMH calls. I believe, SMH will continue to be an excellent predictor of market direction. So, the direction and magnitude of SMH may determine if I buy more DIA puts, or QQQ puts. Also, I plan to buy calls on dips (see Top Picks section). TICK (chart in Chart Room) 100 unit MA crossed and stayed above its 200 unit MA, which may indicate market will rally for a few days. Also, the CBOE Put/Call five day MA is 1.02, which is bullish. On Thu, Inventories, Unemployment Claims, and Retail Sales will be reported, and on Fri the CPI will be reported, which may move the market. SMH is near 30 in afterhours (CSCO reported rising inventories, which is negative). I plan to buy more SMH calls and perhaps DIA puts tomorrow morning.

My portfolio is about $905,000 including $720,000 in cash.

Calls Contracts

QQQ Dec 34 2004 100
SMH Nov 32.5 2004 100
SMH Jan 30 2005 100
SMH Jan 32.5 2005 200
SMH Jan 35 2005 100
ABX Jan 17.5 2005 50
AMGN Oct 50 2004 20
MRK Oct 45 2004 100

Puts Contracts

DIA Oct 98 100

Portfolio at $500,000 on Jul 1st, 2003