Tuesday Update: Adding Anadarko Petroleum (APC)

Market Update 

The dominant trend remains Short, but expect sharp counter-trend rallies along the way. The NYSE index below says it all as prices hit a short-term bottom on February 9th and has consolidated in its Fibonacci retracement zone ever since. Taking out that low from early February will ignite the next leg down. 


Anadarko Petroleum (APC) 

As the chart below indicates, APC is currently on a Short Signal, but very close to reversing Long. A fresh signal Long will get us in, but if the stock begins to drop back from its trend-signal resistance line, we will go in Short. For now, keep the DIS Short trade, exiting the trade on the next reversal. After that, DIS will be removed from the trading portfolio.  

Crude Oil


An easy way to handle stops on options positions, at least easier than having to keep an eye on option prices throughout the day, or having a standing sell order with your broker, is to bet just 1/2 the dollar amount of your "normal" amount into each trade and then use no stop at all. Maximum loss per trade is 100%, yes, but you only bet 1/2 in the original trade, making maximum loss 50%.  The logic is there, though there is some subjectivity on what amount constitutes a "normal" position. It's a simple money management "slight-of-hand", but it makes trade management easier. 

Good Friday

The market is closed on Friday for Good Friday. Next scheduled update: Thursday.


Note: VXX and UVXY quotes are not working. That could be a Yahoo finance glitch (likely), or something more sinister (scary).