First the count – nothing new to report:
Whichever way it plays out there will be a bounce at the 1050 mark. 1000 is when the Gates of Hell open and the fun begins – with some luck in 2010 – forget about 2009, it’s over.
Alright – here are two – I’ll have a late breakfast now (Mrs. Evil slept in) and then follow up with more.
ED is at 5 year resistance – so sweet. Will it paint a throw over? Possible, yes – but after this parabolic rise the odds now support a drop. Don’t play this one with puts however as the ATR is only 1.3%.
CNP has been quite resistant in the past few monhts and its parabolic rise should be near its end. Resistance now and if that holds at 15.25. ATR only at 1.6%, so not exactly a hot option play either. Although that could change if we see a fast drop here and perhaps even Mr. Vix kicks in.
X made me a shit load of money last year.
This entry might be early but it’s worth trying with a tight stop. X is a mover and its ATR is over 3%, so I’ll dip in with April puts.
CENX has gone exponential and almost vertical. I like how it’s now running into a small cluster of resistance. If it doesn’t hold here try again at 15 – if you take it here I’d st a stop slightly above that. BTW, this one is a runner – ATR is close to 5% and that was on the way up – that’s the stuff I like 😉
Expecting CI to be at 29 in January – but I’m getting April puts as IV is so low right now, plus it might take time and January puts are not a good deal due to all the days we lose.
LUV – although I love Southwest (it’s my favorite airline with a perfect safety record) I have no compunction about shorting the heck out of it at 11.5. But wait for it – let it come to you – or at least wait for a weak candle.
MRVL at 20 – and even then set a tight stop as it might run to 22 – this one got legs.