Wells Fargo (WFC)

WFC Weekly Chart

WFC has broken a triangle. To challenge uptrend line at 22 again. Supports: 22/19/13. Bought April 2009 put.

Comerica (CMA)

CMA Daily Chart

CMA has broken down from a triangle. Support at 15/11. Bought Apr put.

JP Morgan (JPM)

First trade of the year. Still looking out for a strong trend. Without strong trend, the options have a higher probability of expiring without making any significant movement.

JPM Weekly Chart

JP Morgan (JPM): Bought Mar 09 put. It may be moving to challenge the previous low. It has broken a smaller rising flag a month ago. Support 20/16.

JP Morgan (JPM)

JPM Daily Chart

JP Morgan (JPM): JPM gave a sell signal a few days ago. It has broken its rising flag. Support 34/27/20. Bought 2009 Jan put.

USBancorp (USB)

USB Weekly Chart

US Bancorp (USB): Betting that it will finally break below the uptrend line. Bought Jan 09 Put.

Comerica (CMA)

CMA Weekly Chart

Comarica (CMA): Bought Jan 09 Put on the expectations that it will challenge the previous low after breaking its rising flag pattern. Support 20/11. However, the 10% gain in DJI may change this scenario now.

SunTrust Banks (STI)

STI Weekly Chart

SunTrust Banks (STI): It gave me a sell signal a few days back. Looks like it has broken it's rising flag formation. Bought Jan 09 put.

July 08 Performance

July was the month for those that go up, turned and go down. For those that go down, turned and go up. I was expecting a minor rebound for the financial and retailers, and a minor dip for energy, but the movement was stronger than I like it. A summary of my closing trades for the month of July, 2008:

• BAC Put (10+): This is my best ever return. I don't think that I can repeat this. Close my put because of a bullish engulfing candle at a time when the daily & weekly chart is very oversold.
  
• LM Put (4+): Close my put because of a bullish engulfing candle that happens at the lower end of the downtrend channel. Additionally, the daily & weekly chart is very oversold.
• LVS Put (4+): Close my put because of a long shadow hammer. Both daily & weekly chart is very oversold too.
• HAL Call (--): Cut loss because HAL weekly MACD is going to drop into negative.
• BAC Call (---): My hedge for my Puts, it could have worked if the strong rebound comes a few days earlier. This one expired worthless.
• ANF Put (++): Only 3 weeks left, tookwhat ever profit that has suddenly presented itself. I hate trading options with less than 1 month lifetime.
  

Oh boy, in July all my open profit vanished! Darn!

Short Term Reversal

So, the bounce finally came. I'm still bearish. The market was very oversold based on daily chart. How high can the bounce go? I have established two put position on Tuesday morning, and the bulls pushed through in the afternoon! Based on candlestick chart, I have closed my put position for BAC, LM and LVS.

• BAC (10+): This is my best ever return. I don't think that I can repeat this. Close my put because of a bullish engulfing candle at a time when the daily & weekly chart is very oversold.
  
• LM (4+): Close my put because of a bullish engulfing candle that happens at the lower end of the downtrend channel. Additionally, the daily & weekly chart is very oversold.
• LVS (4+): Close my put because of a long shadow hammer. Both daily & weekly chart is very oversold too.
  

MET Weekly Chart

Uptrend line has been broken. Looks like 53 is still holding. Bought put for this when 53 was breached and I was expecting that it will become the resistance.

MFC Weekly Chart

Manulife (MFC) has broken the uptrend line (there are two). Currently testing the break. Support at 34/30. Bought the put for this.

Watch list for 7 July 2008

My watch list for Monday, 7 July 2008:

• Greenhill (GHL): If breaks 50.00, then support at 37/30.
• Credit Suisse (CS): Support 35/25.
• SVB Financial (SIVB): Support 40/33.
• Nymex (NMX): Support 75, then bottomless.
• Prudential (PRU): Support 54/46/40.
• Manulife (MFC): Support 34/30.
• Couch (COH): Support 25/19.
• Anixter (AXE): Triangle. Support 52/45.
• JCrew (JCG): Support 25.
• Kuhl's (KSS): Support ~41/32.
• JC Penney (JCP): Support ~35-36/26/15.
• Sinopec (SNP): Support 70/50.
• Amazon (AMZN): Support 62/36.

Looking to getting into PUTs.

Jun 08 Performance

Luck still with me. Still managed to read the trend change from up to down. Closed the following positions in the month of June:

1. VLO put (--): Thought that oil will go lower, got fooled into cutting loss.
2. EP call (++): Sold out my nearer term call, then opened a longer term call.
3. MR call (++): Managed to get out at the top. This is the only one that I have perfect exit.
4. QCOM call (+): Didn't get a good price, but I'm still satisfied with the return as it got really volatile during the trend change.
5. HAL call (-): Cut loss on this one too as I thought that oil will get lower. Anyhow, I enter back a position later into the month.
6. BAC put (++++): Cannot resist in taking profit. This is my best ever return so far. Still got 2/3 position left.

For the rest of my call ideas, it looks like they are going to expire worthless: CAT call, GLW call and SLT call. Luckily, the put ideas is enough to compensate for my loss.

A summary of my holdings:

1. Calls: HAL, EP, STLD, CAT, GLW, SLT
2. Puts: ANF, BAC, GES, JWN, LM, LVS, PDCO, PTR

I am still looking to get into a few financial and retail puts.

Legg Mason (LM)

LM Weekly Chart

Open a PUT position. If it breaks 51.50, downtrend will accelerate and the next targets are 48/36.

Bank Of America (BAC)

BAC Weekly Chart

BAC is breaking down. The first uptrend flag was broken. Next will be the symmetrical triangle. I'm expecting it to break too. That is why I bought the put for BAC.