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Last Update: 1.2.14

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Related Articles

12.18.13 “$SPY Deja Vu (Target Price: $188-$190)“

12.09.13 “$SPY Bull Run (Target Price: $188-$190)“

12.06.13 “$DJIA $INDU Target Price: $16,700“

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12.20.13 Friday

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[At Open] Entered Calls @ $180.72

[After Close]

We have been anticipating this bull flag (like 11/11 – 11/13) after a huge thrust on Wednesday. But as it gaps down on Thursday and Friday mornings, I obviously did not know if it was going to bounce after gap down open on Friday but thought I had a great risk/reward ratio at that level.  If we can close above $182.00 next week, I can see this thing going much higher to my target of $188-$190.

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12.23.13 Monday

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Let’s keep the gap open and grind higher, though, I won’t be surprised to see it come back down to retest that $181.50ish as “old resistance new support” before thrusting higher.  But the perspective is we are at the all time highs and cleared major resistance level of over a month.  We stay above $181.50ish, I think we can get to my target of $188-$190 level.  Still holding full positions.

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12.24.13 Tuesday

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Gap is still open and continue to move higher.  Still long.

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12.26.13 Thursday

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Still holding full positions as we have no signal of reversal.  My target is still at $188-$190.  Keep the gaps open and continue in this trend.

“Trend is assumed in effect until it gives us definite signal of reversal”  – Charles Dow

“Trade in the direction of the gap(s)” – Japanese Rice Traders

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12.27.13 Friday

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Here are the tangible facts:

1. No tangible reversal signal as of today
2. Trend is always assumed in effect until it gives us definite signal of reversal
3. Today’s candle is not indicative of any known reversal signal
4. Well above daily 5EMA
5. Well above daily 10EMA
6. Gaps are still open as of today
7. Weekly chart also looks good
8. No reason to call tops here

I am still in my full positions since $180.72

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12.31.13 Tuesday

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Bull flag confirmation today and moving higher.

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1.2.14 Thursday

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[12:15pm CST] Positions Closed with 37.51% Profit

I had been holding Feb. ITM calls as I have gotten stopped out of my positions earlier this afternoon with 37.51% gain.  Sometimes you get hit with unexpected as it gaped down without much of warning this morning.  We are still closing above 10EMA today so I would have to give benefit of the doubt to the buyers as of today.  Definitely not a level to short (unless day trading).  Unlike $SPY, $DIA seems to be looking more bullish as I am still holding call positions there.