bothisellhigher (29.80)

Trader Charley's Daily Journal

February 18, 2010 – Comments (0) | RELATED TICKERS: SPX , TWM , UUP

                                          TRADER CHARLEY'S DAILY JOURNAL

                                        Standard & Poor 500 Large Caps ($SPX)

Last 1099.51 Up a hard fought low volume .4%.  Current rally encounters strong resistance at 1103.  The S&P has now entered this turbulent area and must fight through and close above it before going long any large cap stocks.  Probabilities favor a "bounce" off this resistance and a resumption of the current  down trend, which continues in earnest at closing prices below 1056.

At 1099.51 HOLD  short positions.  End or Hedge shorts if prices close above 1103. 

                                                      2000 Small Caps (IWM)

Last 62.47 up .7%.  Current rally to above 61.84 brings Bull smiles-Closes above 64.85, Bulls can go hot!  Down Trend resumes with closing prices below 58.68. Just a little more patience Bulls!

At 62.47 End or Hedge short positions.  Begin new short positions below 58.68.  Begin new long positions with closes above 64.85.

                                                   Charley's Current Trade

TZA (Ultra short Russell 2000 small cap ETF)  Buy 10.55 (2/4/10) Target 12.75.  Sold covered calls 12-Feb20 for 75 cents.  Last quote 9.43 -3.6% since 2/4/10...intend to sell covered calls again after the 20th of February.

Other plays on the event horizon that look interesting to me.

UUP (US Dollar Index)...Buy above 23.65...Stop 23.43.

If IWM can close above 64.85 tjem TNA becomes a buy.

Be Nimble.  Be Quick.  Do Good

Charley