As I have recently been saying, I have been waiting for the market to tell me which way it is going to go. For the last couple of months, the DOW has been trading between 11700 and 10650. I am waiting the market to either break through or bounce down from resistance on high volume. Interestingly enough, the market looks to test resistance on or about the next FED announcement date.
7/27/06 $INDU 60d60m Chart
Below is a screen sot of my current trade as of market close on 7/26/06
I only have one trade now. You guessed it, that (so called) straddle trade that I entered some time ago… I have actually been wrong all this time. It is not a straddle trade but a strangle trade. Investopedia provides a fine description of the strange trade. Anyway, as I have come to learn from this trade experience that this type of trade is only profitable when a large price movement is occurs. I have been in this QCOM trade since around 7/12/06 and there has not been one of those large price movement thing-a-me-jigs… This why I am yet to make and profit! I still have a few weeks until expiration, so I will see how it goes.
I lost RIG yesterday to my stop for a 50% profit.
Good Luck - David
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