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$CAT Bear Call Exit

3/23/2016

The sharp rally we experienced over the past several weeks claimed another victim in my portfolio. back on 2/7 I sold the MAR62.5/65 call spread in $CAT. I collected .87 per contract and had a 68% chance of the trade going in my favor. Well, it was the 32% that came to be, as CAT participated in the monster rally over the last few weeks. I closed this trade a loser. Paying 2.52 per contract to close the spread, thats a net loss of 1.65 per contract. We define our risk and position size to play another day, and thats what I'll do.

tIP BOT +1 VERTICAL CAT 100 MAR 16 65/67.5 CALL @2.52 PHLX

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TSLA Trade Close

3/23/2016

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I closed my TSLA option trade a loser, after Tesla rallied hard. I received .75 credit for the trade, so it ended up being a 1.85 net loss. This is why we trade spreads, defining our risk. I;m watching TSLA closely, they have an event planned later this month. I think the time to take another crack at selling premium after a monster run could be at hand.

tIP BOT +1 VERTICAL TSLA 100 MAR 16 195/197.5 CALL @2.60 ISE

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Adding Another Name To My Long Chaikin Portfolio

3/12/2016

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Although I believe the market is overbought, I did initiate a long trade into the close Friday, 3/11. $OMC flashed an "Oversold Buy" signal. The name is above the 200 day long-term Chaikin moving average, having recently broke above resistance and currently re-testing, and re-testing with strong money flow, is a bullish sign. Also, relative strength, agrees with the Very Bullish Power Gauge. All in all, this trade meets all my rules, I would have liked to see a little more green with the Experts, but wasn't enough to keep me out of the name.

BUY +40 $OMC @78.75 LMT DAY

After a slow start to the year when it comes to trading long stock, I'm now holding four names in my portfolio, two of which I added in the last three days.

Are we going to break higher, or are we going to take a slight breather after a monster rally? I'm not sure we find out until after March expiration... but that'll come soon enough.

Happy Trading!

-AA

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Addition To My Long Chaikin Portfolio

3/10/2016

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I added another name to my Chaikin portfolio this week, $PCG - Pacific Gas & Electric. now, I already have a utility in my portfolio, $NI so $PCG makes two, I can't / won't add anymore names that belong to the XLU.

I took the trade on a Chaikin Money Flow Buy Signal. The technical s look outstanding.

$PCG has a very bullish power gauge rating and the relative strength agrees. The period of time Money Flow has been positive, especially the stronger money flow as of late, is a very powerful indicator. The stock is above the 200 day long-term Chaikin moving average, Experts are positive on it, it's oversold in a mostly overbought market and last, but certainly not least, PCG belongs to the XLU which has been outperforming all year. See our weekly sector trend analysis HERE. Additionally, even at the elevated price we'll still collect a modest 3% yield, so if the market was to sell off we'll be supported by some yeild protection.

A closer look at PCG reveals something pretty impressive and exciting....

... looking at the weekly bars on a 10 year chart, PCG was range bound since 2007, yes 8 + years! Until October of last year, when it finally broke out. It has recently re-tested the break out and started the march higher once again. I'm not one to set "price targets" but I wouldn't be surprised if PCG made it into the mid 60's in a relativity short time frame. Again, we don't set price targets, we ride trends, so I'll set my stop loss according to my rules... and ride this puppy!

Happy Trading!

-AA

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$CAT Bear Call Exit

TSLA Trade Close

Adding Another Name To My Long Chaikin Portfolio

Addition To My Long Chaikin Portfolio

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