The analysts support levels of today are the resistance levels of tomorrow, and vice-versa. There are as many ways to spin the markets movements as there are talking heads on the financial cable networks. You could go crazy listening to all the different opinions out there. Fortunately enough, if you set up the correct trades, the directions of the markets are less worrisome and more profitable.
We aren’t sure whether these markets are going to keep selling off, so we decided to make a couple of plays today with the pullback. If you don’t take advantage of the movements in the market you’re going to miss a lot of opportunities.
The first play we made today was on Nike Inc. (NKE).This trade was only made a couple of days ago, but we don’t care. If early profits present themselves we are going to take advantage for our members. We shorted this stock on Tuesday at $73.61. In our opinion, both this stock and the overall markets in the short-term were overbought. We also liked the idea that earnings were coming out the next day. We felt that the low risk we took on the trade would allow us to take a chance before they reported. Although the report wasn’t dismal, the stock sold off anyway. We covered our position today for a $361 profit. Better yet, we still have a July 75 call option we can cash in on if the stock makes another move up.
The second play we made was to cover our short position on Cephalon Inc. (CEPH). After we made this trade we were very disappointed in the way it showed strength during the markets weakness. We underestimated its strength and decided to exit with a $152 profit. If the call option we still have expires worthless we will only take a $48 dollar loss on the entire trade. If the trade doesn’t go your way, figure out a way to limit your losses!
The other three stocks of ours sold off with the general market but we have adequate protection on all of them and plenty of time left. Since we exited a couple of positions, we will need to replenish the portfolio up to its original size.
Have a great evening and we’ll see you again before market opening!
June 2010 Recap
6/21/10: Sold short 100 shares of Cephalon Inc. (CEPH). @ $60.50
6/24/10: Bought to cover 100 shares of Cephalon Inc. (CEPH). @ $58.98
Profit – $152
6/22/10: Sold short 100 shares of Nike Inc. (NKE). @ $73.61
6/24/10: Bought to cover 100 shares Nike Inc. (NKE). @ $70.00
Profit – $361
6/1/10: Sold short 100 shares Union Pacific @ $71.96
6/4/10: Bought to cover 100 shares Union Pacific @ $69.68
Protective Call Option: ($41)
Profit – $197
6/11/10: Sold short 100 shares MercadoLibre Inc. @ $57.50
6/11/10: Bought 1 June 57.50 call option
Position Expired
Profit: ($160)
6/2/10: Sold short 200 shares Thoratec Corp@ $44.00
6/4/10: Bought to cover 200 shares Thoratec Corp @ $42.70
Protective Call Option: + $300
Profit – $560
5/27/10: Sold short 200 shares Jinpan Intl Ltd @ $15.83
6/07/10: Bought to cover 200 shares Jinpan Intl Ltd @ $15.14
Profit – $138
5/25/10: Bought 100 shares ConocoPhillips @ $49.00
6/10/10: Sold 100 shares ConocoPhillips @ $52.57
Profit – $357
6/14/10: Sold short 100 shares Concur Technologies @ $43.60
6/14/10: Bought 1 June 45 call @ .25
Position Expired
Profit: ($165)
5/24/10: Bought 100 shares of Baidu@ $72.18
6/10/10: Sold 100 shares of Baidu@ $72.32
Profit – $14
5/20/10: Bought 200 shares Quest Software @ $18.75
6/10/10: Sold 200 shares of Quest Software @ $18.75
Profit – 0
6/7/10: Bought 100 shares Overstock.com @ $19.65
6/11/10: Sold 100 shares Overstock.com @ $21.66
Protective Call Option: ($140)
Profit – $61
6/4/10: Bought 100 shares of Valeant Pharmaceuticals Intl. @ $ 46.54
6/14/10: Sold 100 shares of Valeant Pharmaceuticals Intl. @ $47.50
Protective Put Option: ($85)
Profit – $11
Total June Profit to Date: $1526
TEN Exclusive: Portfolio Update – 6/24/10 is an article from: 
