Walmart Dampen the market
Yesterday, Walmart announced her earnings. She warned on the coming quarter earnings and blamed higher gasoline prices for curbing the spending plans of its low-income shoppers. This has somehow comfirm the gasoline effect on the retail area and create a very strong bearish sentiment that bring the Dow Jone -120.93, Nasdaq -29.98, S&P 14.35
I'm in two active position TXU and AAPL.
TXU was down -1.90 (93.68) , since I'm doing Bull Put Spread on Sep 90 and 85, I'm still OK. But the paper gain has dropped to $40 from as high as $80. $150 will be collected if stock price remain above $90 by the expiration.
AAPL was down -1.43(46.35). I'm having a lost of $100 when the Sep 45 Call drop to $2.70 from my purchase price of $3.70(47.55). I might have cut the lost on $3.50 when the market open, however, I have let myself to let it free flow and ride the wave all the way with limited lost of $370 to gain the experience. I have a few experience that, when i concentrate on the daily gain, I miss the further gain the following few days when i met a bullish stock. Therefore i turn this day trade into Short term trade since i'm bullish on this stock.
New position added : NTES -1.51 (75.69)
I'm doing spread on NTES due to it's high premium and bullish earning report recently. I have collected $1.80 on the Bull Put Spread on Sep 75 and 70. The stock price i got in around $76 since I have queue on $1.80 credit when the DJ is -40, S&P -4. Hopefully the stock stay above $75 before the expiration, and I think it will.
What have i learn from today market? I learn that when a big company like WMT provide warning, it will shake the the market, and pull down the whole market. But how long and how deep...? From previously experience, it won't last long, as long as the consumer spending remain at tolerable level, and more better company earning report come out.
Hopefully, Good news from HPQ will help bring AAPL and narrow my lost on AAPL, and provide some bullish sentiment to the market. However, one bad thing is September is a traditional bearish market. Perhaps, I should sit tight, and initiate some bearish position.
I'm in two active position TXU and AAPL.
TXU was down -1.90 (93.68) , since I'm doing Bull Put Spread on Sep 90 and 85, I'm still OK. But the paper gain has dropped to $40 from as high as $80. $150 will be collected if stock price remain above $90 by the expiration.
AAPL was down -1.43(46.35). I'm having a lost of $100 when the Sep 45 Call drop to $2.70 from my purchase price of $3.70(47.55). I might have cut the lost on $3.50 when the market open, however, I have let myself to let it free flow and ride the wave all the way with limited lost of $370 to gain the experience. I have a few experience that, when i concentrate on the daily gain, I miss the further gain the following few days when i met a bullish stock. Therefore i turn this day trade into Short term trade since i'm bullish on this stock.
New position added : NTES -1.51 (75.69)
I'm doing spread on NTES due to it's high premium and bullish earning report recently. I have collected $1.80 on the Bull Put Spread on Sep 75 and 70. The stock price i got in around $76 since I have queue on $1.80 credit when the DJ is -40, S&P -4. Hopefully the stock stay above $75 before the expiration, and I think it will.
What have i learn from today market? I learn that when a big company like WMT provide warning, it will shake the the market, and pull down the whole market. But how long and how deep...? From previously experience, it won't last long, as long as the consumer spending remain at tolerable level, and more better company earning report come out.
Hopefully, Good news from HPQ will help bring AAPL and narrow my lost on AAPL, and provide some bullish sentiment to the market. However, one bad thing is September is a traditional bearish market. Perhaps, I should sit tight, and initiate some bearish position.
posted by mikanico at
3:54 PM
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