OPNewsletter Jun’09 is up 7.34% (Open)

OptionTrading|Recent Market MovementA week in which Dow moved between +2.5% to -1.75%, S&P500 from +3.25% to -1.5% and RUT from +4.75% to -1.50%, and all closing in negative territory, OPNewsletter gained +2% that too after increasing capital investment by 36% over last week. Overall OPN is up +7.35% (x- brokerage commissions) and +5.3% (including commissions). This excludes bonus trade gains from GDX straight calls, GMCR and POT. We have invested almost 57.3% of 10K assumed capital across various sectors and diversified strategies.

Sectors include – Steel, Gold, Transport, Overall General Market and Strategies include Iron Condor, Calendars and Covered Calls.

  • GDX is up from -2.27% last week to +5.3% (and BTW GDX moved almost $5 in last week, and those straight speculative calls might have doubled)
  • X is up from -1.15% last week to +9.6%
  • UPS is down from +3.88% last week to -5.11%
  • RUT Iron Condor is up from +9.6% to +18.27%
  • IWM is up from +12% to +17.78%
  • DIA is up +3.4%

This doesn’t include returns on POT (>+30%), GDX (almost double) and GMCR(>+5%). If you would like to join OPNewsletter, pls click here.

This 2nd leg of rally since early May has been characterized by thin volumes. The volume is increasing on the down days and reducing on the up days, showing signs of increasing market fatigue and probably some degree of further market weakness could be ahead. Will a limited correction be followed by another attempt at new rally highs? Or, is it possible that a decline back to the March lows, or below, could occur in the weeks or months ahead? As Market Veteran Richard Russell of Dow Theory says- “Dollar down, bonds down, gold up, it all fits together — trouble.”

We’ll address more issues when market returns to full trading volume post long weekend holidays.

Profitable Trading, OP


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