Wang’s Happy Trading

I wonder what is more of a distraction for traders:  March Madness or all this talk of healthcare reform.  I think there is a little of both and more.  I tend to watch the market for clues and today was really no more than some profit taking.  Remember, you have a million excuses to sell.  I won’t talk anything more about politics, it’s something you and I cannot control..but we can control our capital.   That being said, we are clearly overbought…and why not take some profits?   My main concern is about complacency, the market is clearly showing it with a VIX under 18%.  That’s not really a problem when the market is overbought.  Breadth has been really good while price action as been equally as sharp.  We’ve seen good rotation but today that was not the order.  Instead sectors declined, some rather sharply (commodities, gold, coal).  That may just be a nice area to enter.

This was a tough week with a couple of losses, a couple of winners.  We have some April plays still open though that are working well so far (BBY, AAPL, CME, QCOM, RIMM).  I plan to have some more new plays out in the coming week.

Results for the week:

March 19, 2010
12:13 | Bagger Vance NVDA ($17.25) Sold to Close UVA032022016C Mar 16 calls, at $1.25 -39%
11:49 | Bagger Vance MSFT ($29.50) Sold to Close MSQ03202228C Mar 28 calls, at $1.50 -35%
 
March 17, 2010
 
08:54 | Bagger Vance GS ($177.00) Sold to Close GPY 04172010 175 C Apr 175 calls, at $6.70 +161%
08:52 | Bagger Vance NTAP ($33.34) Sold to Close NJQ0320201031C Mar 31 calls, at $2.40 +20%

Have a restful weekend, I’ll see you Monday.

by Bagger Vance