Doctor Jack's Stock Medicine

The rally in the last couple of months is really over-extended. We need a pullback badly.

This market is on steroids. I'm still seeing some room for the bullish % numbers to keep rising. But at the very least, you'd think a yellow caution light would come on somewhere?

[peanuts]

The rally in the last couple of months is really over-extended. We need a pullback badly.

Jack,

I was thinking the exact same thing. I'm waiting on the climax of this sub-plot, then I'm out.

FED announcment in about 35 minutes (@ 2:05 ET)..should be interesting. Shoudl be no surprise that they'll keep the rates unchanged, but I'm thinking they'll be more hawkish at this point. We'll see...the way the market is reacting lately nothing seems to get it down.

The rally in the last couple of months is really over-extended. We need a pullback badly.

Re- shorted 2 blocks at 120.89. I'll cover tomorrow for a more ripe trade.

FED announcment in about 35 minutes (@ 2:05 ET)..should be interesting. Shoudl be no surprise that they'll keep the rates unchanged, but I'm thinking they'll be more hawkish at this point. We'll see...the way the market is reacting lately nothing seems to get it down.

[jiesen]

I need a poster of you for my wall. I'll put it next to Rob, but of course, under Mr. Market

Seriously, nice trades!

Yes, I'm noticing, too. Just about every trade yours is dead on, Jack... you are HUGE!!!

Jack,

How did you know exactly when to get out of your short? I saw that DIA was overbought according to the RSI and MACD. I am just trying to gleen some info on how and when to get out of position so quickly.

For these intraday scalps, I rely on the hourly and 5 min charts... Also, momentum plays a huge role in successfuly matring these kind of trades. It is of paramount importance to have had them placed on your montior list for quite some time to learn about their behavior.

[peanuts]

sold 6 blocks of SLB at 60.83, and bought back the Nov 57.50 calls at 4.40. Netted 16 cents/share times 60,000 shares.

I need a poster of you for my wall. I'll put it next to Rob, but of course, under Mr. Market

Seriously, nice trades!

Slb

Bought 4 blocks of SLB at 60.26 to 60.30, and wrote 400 Nov 57.50 calls at 4.00. The retraction to test the 58 sipport should be protected by the "deep in the money" calls.

sold 6 blocks of SLB at 60.83, and bought back the Nov 57.50 calls at 4.40. Netted 16 cents/share times 60,000 shares.

[jblaze71]

Jack,

How did you know exactly when to get out of your short? I saw that DIA was overbought according to the RSI and MACD. I am just trying to gleen some info on how and when to get out of position so quickly.

Dia

Re- shorted 2 blocks at 120.89. I'll cover tomorrow for a more ripe trade.

Dia

Shorted 2 blocks at 121.09

Covered at 120.73

Amd

Can you give me your thoughts on AMD ??

I actually followed your call on Friday and bought AMD at $ 20.03 and wrote Nov 20s at $1.23 ( instead of the Nov 17.5s) ... now Im trying to figure out what to do with them . Should I wait for the time premium to diminish on the calls and let the stock run ?

Both strike price will give you time value...However, the 20.00 strike, being "at the money" will decay faster becuase it's not obligated to any intrinsic value. If youre accumulating a position for the long run, I like the 20 strike better.

Mrvl

Bought 6 blocks of MRVL at 16.50, and wrote 600 Nov 16.25 at 1.00/contract

Bought 2 blocks at 59.75, and wrote 200 Nov 60 calls for 2.55/contract. The stock is sitting at the 3 month support. I couldn’t resist such a juicy premium. Basically I have a 2.55 dollars as a downside protection.

oops, that was SLB

Dia

Shorted 2 blocks at 121.09