SIGM - Sigma Designs Inc is a BUY

After 10% Jump on Thursday (announcing blow out numbers) stock is down about 40 cents today, I got in Oct 45 Calls ($2.35), one could wait for more pull-back but the group action and nice uptrend in this stock encouraged me to go long today.
Update on Gambling stocks (IGT): IGT is up for 3 straight days and hasn't given me an entry point yet.

Closed Dell position

Sold XX contracts of Dell Spet. 27.5 Calls at $1.50-$1.55 (bought on 8/29 at $1.00)
maybe should have waited for their numbers but 50% gain was too good to pass.

Ready to Gamble on Gambling stocks?!

About today's 280 drop in the market: Well notes from Fed meeting indicated that Fed is not ready to drop interest rates any time soon (at least not till next Fed meeting on Sept 15th), Housing inventory and sale's data also hit the market at the wrong time and combine with "bad loans" scenario, pulled the market down. my Short positions on APA, KBH and MHK are all in Green now, and I closed APA position to raise cash. My only Long position (Medco-MHS) suffered a loss but still in Green and not too worried about that one. What now: The group action in Gambling and Casino stocks August is significant, this group is certainly under accumulation. Cramer also mentioned WYNN and IGT as good bets in this sector. WYNN is certainly one of the top leaders in this group, but IGT is in RED now, however expanding casino to international market sounds like new market and opportunity or IGT. I would say buying WYNN will be a better choice and IGT is for people with more risk tolerance. I also hope for another down day (WED) so I can enter my long position on DELL, and wishing a move to the +ve on Thursday or Friday.

Bought: IGT Oct 40 calls at $1.10 (Sept 5th 07)

Candidate trades for the week of August 27

I am looking into two bulish trades on technology stocks this week. Dell and Blue Coat Systems Inc. Dell ($27.74) will announce this Thursday, The group action have been strong for a while and analyst upgrades are expectd after their earning announcement on Thursday. Hopefully we find an entry point on Monday. I am looking into Sept 27.5 Calls at this point (it was last traded $1.12 on Friday. The second tecnology stock is BCSI, admittedly I am late on this one and do not want to get in now, hoping for a pull-back to get in. Stock went up from 60 to 86 in 4 trading days, after their Q1 announcement followed by couple of upgrades on Thursday and Friday. So this is a good tech. to have. I hope we will get our chance to get on this wagen perhaps at $70-$75 range, I will not jump in front of the speeding train by predicting a pull back , just hoping to get one so that I can buy calls on this stock. This strategy worked for me on AMZN.

UPDATE: Sold Sept 75 Calls at $4.80 (On Sept 11th @12:52pm PST)
UPDATE: Bought Sept 75 Calls at $3.5 (On Sept 6th, 07)

Closed my Short position on SA Eying APA

SA lost 15% in past two days, and I got out this morning (maybe too early)
I got in early (too) so SA moved higher on me couple of days ago , and my puts lost their value by 70%, then recovered yesterday and today sold my Sept 25 PUTS at 3.50 (the high was at 3.90 I believe) I bought them at 2.90.
And now APA, the group is going out of favor, double-top formed a month ago and having trouble maintaning old grounds, maybe We get a point or two higher and then buy PUTs, APA is at $76.

UPDATE 8/28/07: Closed APA Sept 75 PUTS at $2.35 (bought at $1.60)

Is Medco (MHS) ready to break away!

I was looking for a momentum stock tonight, came across this one [MHS], its a defensive play here .. and the chart looks great, the "Ascending Triangle" is forming and I expect this stock to shoot higher).
So I am hoping to get an intra day weakness that I can get in , I will give myself a little more room than usual, and letting it work for me, The group (Retail - Drug) is getting some momentum in the past month and attracting big money, the only negative was insider selling which is always a concern, but price/volume chart shows momentum build up here and ready to break out. now that I have a game plan and a strategy to buy calls, let see how the rest of the market play along. I say BUY MHS 85 Calls at this point

KBHome has more room to go down

I traded HOV a few times to the down side, the problem is HOV at this level is not expensive enough to SHORT (its $12.30) , KBH is . I have a feeling value buyers will not let HOV go below 10 for long, so I am looking for more expensive stock in the same group. This Industry group is clearly out of favor and it looses ground even in a good day, thinking hedge funds may still have more dump, so I see 4-5 points to the down side and I am looking into buying some PUTs on this stock.

update 8/23/07 (KBH is not moving in my direction , still hoping for a down turn, I came accross an article, you may want to look at as well:
http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-19108520.htm

AMZN heading up!

I am hawkish on amazon because of their great numbers they announced and the way the company is poised to gain from the upcomming shopping season ,

Making a Bearish argument for Mohawk Industries Inc

On a good they it lost all his gains at the beginning of the market on Friday, the textile group is also under presure and losing its good standing, tis is an expensive stock (which means could go down faster .. ) chart also not helping the bulls , sto sum up my reasons for shorting this stock:

1. Textile group was among biggest losers on a good day (last Friday)

MHK lost 1.38% and lost all it early morning gains

2. The group is volunarable in the current economic cycle

Reversing position on POT and SA

Question: What a Fertilizer stock and Gold have in common?
Answer: They are both going down and out of favor these days.
I have been trading these two to the upside a few times , last Friday sold my long positions and bought calls this week, had to average down on a day that market was extremely over sold, hoping for a bounce, which came along out of no where on Friday, sold my calls on both (POT, SA) had trouble selling my SA calls when it was up 2 pts (very low volume and did not get a bid for two hours after market open), Looking at their charts and their poor performance on a day that market reversed course, POT was up 6pts and lost it all by the closing bell, SA ended up in RED. GOLD/SILVER sector was extremely out of favor this week,. Still looking for a better SHORT play in this group something more expensive which is about to come down even harder. I had a post on Aug15th, warning about weakening POT. But today I have seen enough evidence to believe they both could go lower. my strategy for the upcoming week will be: Hope for a bit of strength and then buy PUTS.

Closed GRMN maybe get back in later eying AMZN as well

Sold GRMN Sept $95 calls at $6.10 (its high right at the open was $7-$7.50)
Interested to buy AMZN on a dip.
Also out of my call position on MRO at $2.2 (average cost 1.8)

Got in GRMN, its down $5

Bought Sept 95 calls at $3.30 (hit its support at $86) This one is on Cramer!

GRMN mentioned by Cramer again!

Madmoney host Jim Cramer, likes this stock he mentioned they had a great quarter and 45% growth potential
GRMN is trading around $91 high was around 106, 30 days average is around 86, he was saying its a good BUY at this price and even a better buy at $85, chart looks great and supporting.
Look into it ...



He was also mentioning Drugs and Food group should be safer (defensive play for the next few months)

POT: He was also negative on fertilizer group, POT suffered a huge loss today and broke the support, its off my radar for now! (But not shorting this just stay away, the group is still strong) although a double top maybe formed!



HOV: I should have stayed with my short position on this one, could have double my profit if stayed 1 more day, Oh well, there is always something in this market .. No sweat

New Position: MRO

MRO Sept 55 Calls @ $2.10 (before the market close on 8/14/2007)

Closed HOV short position

Closed position: HOV Sept 15 put @ $2.80

Is there a double bottom on MRO chart?!

I have been negative (short term on energy stocks) and shorted MRO last month. Today energy stocks rise with the rest of the market and higher oil prices, also its upgraded to market performer from under performer. I am looking at Sept 55 Calls at $2.90.

On my radar for this week: Long POT and SA

I am praying for more profit taking in the market in the upcoming week so I can take new LONG positions in POT and SA.
POT Sept 85 and SA Sept 30.
I have been trading these two gems in late July and early August and all trades turned out to be profitable.

8/10/07: Short HOV

I have been aiming at shorting HOV at 20 and I missed, (I picked some other trades), However this one went all the way to $10 (on Aug 1st), bouncing to 15,16 dollars range is nothing but a 50% retracement or in my opinion a huge "Dead cat bounce", I took a short position on this on Friday "Bought Sept. 15, puts". Its industry group (Construction services) is also out of favor for long and with all these noise about sub-prime lenders, do not see construction chip will be played on the long side, anytime soon.