Wednesday, October 20, 2010

Some quick trading updates.

It’s been a while- sorry for the lack of updates. It was a busy trading week for me. I took upward of 10k out of my AAPL trades. I sold a bit too soon (around 308) on Friday. I definitely left 10-15 grand on the table on Monday before earnings. This eats at me a bit, but I had a made a commitment to get out if it ran to 305 prior to earnings- as it was setting itself up for a sell off after earnings announcement.

Let me be clear- I don’t think there should have been a sell off. That was a MONSTER quarter. 20 BILLION dollar quarter. It beat EPS by nearly .60 cents per. Crushed on IPHONE and MAC sales and missed slightly on IPAD (which is a new product so these analysts really have no clue what to project) and really, IPODS are Christmas gifts-but other than that, who really cares about IPODS? Not me. Gross Margins getting ‘squeezed’ is a red herring, AAPL warned about this last quarter and it should come as no surprise. They still blew out the quarter and continue to add to free cash flow and penetration into foreign markets. Profit taking, I can understand. But I’m looking for $400 after the holiday earnings. Get back in while it’s below 310.

Now for a trade that went BADLY. After GOOG announced I figured we would have a huge run up AH and then a minor sell off the next day. We quickly traded down to $592 and I went long 30 OCT 600 puts at a $8 per cost basis. My thinking was that GOOG was setting up to be pinned UNDER the 590 strike price as large money couldn’t be long the $600 calls. I bought igh and sold low. The stock slowly marched back to the 598 range and I got out for a considerable loss (most of the AAPL gains for the last week). BIG MONEY wanted this stock pinned at $600. This was a stupid trade on my part, one I won’t make again.

Other than that, PGF is being unfairly punished in the current financial sell off. PGF are preferred FOREIGN financial shares. If you are looking for a good entry for this great ETF, here you go. Under 18 is a bargain.

I am going to post my portfolio updates later today. I have decided to make a run of the mill ETF DIV portfolio for the short term. I will add with individual companies as pullbacks allow. I don’t like entry levels at the current prices.

All the Best,


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