CPI, PPI, Earnings & an Anticipated Market Bounce!

The anticipated market bounce did not occur today. I think that the market is waiting for tomorrow’s CPI/PPI announcement. From what I understand, if the numbers are good, there will be a number of sharp gap ups in the market at open. If that occurs, it will induce what I hope to be a short lived rally where the opportunity to enter some new put trades may arise. I have never been through a CPI/PPI announcement, so I don’t know what to expect. If the market gaps up tomorrow, I am sure that it will take a good share of the 65% paper gain that I had been nurturing the last two weeks. We will see.

A guy by the name of Mark posted the following comment on Trader Tim’s blog today. I agree with his thoughts:

“DOW temp bottom, or pause on the way?That is the biggest question for today.

For those that haven't shopped for their August+ puts, it is probably a good time to look. Especially if the market sprints North like most peoples' guts are telling them.

Hard to say how long this pause in the DOW will last, like the last couple lasting 7-9 days each. And which way will it break?It should get over 10900 to complete the second sholder. But if there is enough catalist, it doesn't even need to do that and just drop to 10400-10500.

If it does drop to that level, it will likely spring back up to 10700 right after.I think Tony said it sometime recently, it may be Wed or Thurs before we see movement again. If it heads North, it makes for a really good technical bottom for the h&s to hit 10900-11000.”
_________________
Below is a screen sot of my current trades as of market close on 7/17/06.

As usual, below are the adjustments that I made to my current trades before market open. I have adjusted them to lock in profits and/or minimize possible losses. The anticipated bounce on the major indices did not occur today, but the expectation is still there. I expect to be stopped out of many of these trades in the coming days.

.QAATY – Stopped out today for a 32% gain in 10 calendar days.
.BNITO – Hold @ 73.36 - The stock closed right at its support line surpassing my profit target of 72.25. My indicators appear to show an oversold condition.
.DVNTL – Hold at 61.80
.DOTQ – Change to 76.30 - It looks like it may find support at 72 and bounce or continue on its way down.
.EOGTN – Hold @ 69.63 – I am glad that I was patient. It appears to be making its move now.
.ETTX – Stopped out today for a 93% gain in 10 calendar days. I did not reach my profit target of 21.00.
.QMHTK – Hold @ 51.07 – My profit target for HWAY is 46.27
.LSSTL – Changed to 52.96 – My 1st profit target is 50.07.
.MLMTR – Changed to 79.58 – It My profit target is 77.15. It needs to break 76.90.
.NYXUK – Changed to 62.55 – I may get stopped out on this trade tomorrow.
.AAOHH & AAOTU – Straddle Play, still watching the numbers!
.XBTTF – Changed to 57.51 – It appears to be making a move now.
.RIGTQ – Changed to 77.55 – My profit target for RIG is 76.68
.TRNTH – Hold @ 35.00 – My profit target for TRN is 30.39
.UNPTR – Changed to 86.48 –My profit target for UNP is 84.77.
.YHQVG – Hold @ 32.48. Forgot to exit the trade, looks I am going to be in it for the earnings call. My guess is that it will be good & the stock will gap-up to above 33.23. If not, it will head down to 30.23.

For anyone reading this, just remember that this is my personal trading journal. I do not recommend that you enter any of these trades or do anything that I choose to do. Theses trades and stops are based on my own analysis and conclusions. I recommend that you develop your own trading systems, strategies and rules, conduct your analysis, come to your own conclusions and get professional advice from qualified professionals persons before making any investment decisions. I am no way near qualified to make such recommendations.

Good Luck - David