Markets had a standout performance this week, shaking off the recent negativity from Washington and other places. This market is all about earnings – and we need not look any further than that to explain an up 2-3% week. From Apple, to IBM, from Morgan Stanley to GE – there were positive reports across the board. Oh, we saw the unexpected potholes – and we hit them, too – but by and large most companies are beating numbers and raising guidance. The recent fears as covered by the VIX and put/call have calmed down as seasonal trends attract new money. I expect to see continued good action with respect to prices. Next week brings about the end of July, which is up roughly 1.5%. One note of strength was seen in financial stocks this week – a big surprise considering they have been in the doghouse most of the year.
Strong week for us as we booked some nice winners. All in all we finished 6-3 on closed trades, a blistering 67% win rate. The three losses of course were earnings-related, we’ve talked about expectations on these binary plays. The big whopper was the ISRG trade. We have more good trades in the oven right now and are nearly ready, along with new ideas. BIDU has earnings Monday night. ACOM later in the week. We’re looking to close some more positions soon. Below is the table from closed trading activity.
Positions – Below are new position updates. I won’t post comments everyday but will have updates from time to time. We are NOT daytraders by design, therefore needing to justify a move against because of market action is really nonsensical. We need to understand the purpose here, take it easy and trust that the charts tell the story. (We added positions on Tuesday 7.22.11 – we hold positions until I send an alert that we are exiting).
We added two coal names Friday – BTU and PCX Aug in the money calls. I have liked this group for awhile and they should really get moving. If you would like a listing of open positions please let me know, my email is email@example.com.
Have a nice relaxing weekend.