EEM Double Calendar

So how do we adjust EEM now that it needs adjustment? If I buy more double calendar, it will mean I will pay more. Even though it puts me back, it doesn't yield more because I put in more.

Intern Project Fair

I rocked at the Intern Project Fair. I think my poster was one of the most outstanding one among all 

Market guide 2/22/06

Wednesday 02-22-2006

Market Trend?

The Market Forecast for the Dow is currently moving into overbought territory.

The Market Forecast for the NASDAQ is currently mixed with no real sign emerging.

The Market Posture list places many of the indexes at or near resistance while the VIX.X is moving lower again.

Overall we see a slightly overbought to mixed market. This does not mean the markets can not continue to move higher, it only means that we should not be a strong bullish investor at the moment. What does look strong however, is the Russell 2000 index, RUT. These small cap stocks are driving higher and could be an excellent area to focus on.

On Friday I'll show you how to search the small cap stocks to take advantage of their upward moves.

Cheers,
Mike

AMED Bull Put

The stock is staying above around $40. I decide to buy a bull put of $35/$40 with a credit of $0.95. The return is 23% (=0.95/4.05). Breakeven point is $39.05.

Lesson: Don't buy to ever think that the stock will go up

Don't buy a stock if its Sto and MACD indicate are below the zero line. The stock is likely to go down in that region.

Penny Stock

Homework: Many new investors like to look for investments for a smaller account while some even look for Penny Stocks. A Penny Stock is generally referred to as any stock under $1.00 in value. It should be noted that Penny Stocks are usually newer companies that have unproven track records and should be traded with risk capital. The good news however, is that if these new little companies take off to the upside they can have fantastic gains. To search for these stocks on the INVESTools site:
1) Click on the Searches tab
2) Click on the Power ProSearch link
3) We will use the Price Performance, Volume Indicators and Background for the Categories. Please see the picture on the click here page for the parameters for these categories.
4) Scroll to the bottom of the page and change the Results to 40 from the preset 25 and then click on Submit Search
5) When the results come up, click on Select All Symbols and then on View Selected Symbols as Chart Thumbnails
Look for anything trending higher and then you can do some research on the company to see if their product or service is something you believe has future growth potential. On the current list Goldfield, GV, has just recently broken out to the upside on 2 new green arrows as well as trades in the .BCE industry group.

Oct USNA Bull Put Spread

I decided to buy a USNA bull put spread of 45/50 for a credit of $1.2. Breakeven point is $48.8. Return is 31%.