Market Has Pre-Explosive Look and Feel Friday, Mar 12 2010 

Investment Advise and Market Timing maximize401k 7:36 AM

Market Has Pre-Explosive Look and Feel

For several days over the past week the Nasdaq has been out-performing the Dow and S&P 500 significantly…up twice the percentage move or better.  Although the Dow is not at 52 week highs it still has the pattern of a potentially bullish mover.  The QQQQ has hit 52 week highs for the past 3 days.

I mentioned AMZN as a fabulous options player in my blog last week (Maximize401k.wordpress.com).  There are also other strong players we have been relying on as option trading vehicles such as GMCR, AAPL.

Disclosure: Long GMCR, AAPL, AMZN

 

AMZN – Amazing Amazon Tuesday, Mar 2 2010 

Market Timing and Stock Chart maximize401k 2:37 AM

Low Volatility (totally sideways action…or inaction) follow by fantabulous volatility explosion.  We took advantage of this set up to teach our 17 year old the power of stock options.  We told him to watch what happens to the options last week on Friday because we expected a substantial up move in the underlying stock, taking note especially of the March 120 and 125 options.  We had positions on, so he was able to experience that first hand also.  See the chart below.

See also some of the model portfolio stocks for your 401k.  Not many comments made recently because the market did not do much around Christmas, and then there were not storm clouds on the horizon.  For example see CREE mentioned late last year in the 40′s, hitting near yearly highs at 70 and outperforming the S&P 500 by wider and wider margins.  We will update the portfolio performance soon.

 

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