Options Assigned

My April covered calls that I sold on RIO and CHK got called away at $15.00 and $20.00 respectively. I still realized an approximate 15% gain on each position at those strike prices. I was safe on my X because my strike price was $30.00 and Friday's close was $29.96....talk about close.

Taking Profits

Nice move today across the markets, in which the Dow crossed over the 8,000 level. I wanted to thin out some of my portfolio, so I closed out my entire position of CEMEX S.A.B (CX) at $7.61 for a 6.43% profit. I sold a April 15 call on Companhia Vale do Rio Doce (RIO) for $0.80, and as a complete speculative play, I picked up some shares of Ford Motor Co. (F) at $2.94. I think everyone agress the auto industry is bound to consolidate, so I'm taking a stab at who I think will survive.

RIO Covered Call

I'm putting my stocks to work for me by selling covered calls against my RIO position. I sold Feb $14.00 calls for $1.15. I honestly was not thrilled to put this trade through, however its price trend is a tad bit below the $14.00 strike price, so I am banking on this continued trend.

The Day After

I tried to get back into some foreign market exposure yesterday, however I set my entry points too low and the market just had too much upward momentum. Today is another day and I will keep with my current strategy moving forward. This includes the following:

*Long on the FXI and ADRE at respective entry points

*Shorting the Dow via the DXD

*Selling covered calls on my position within RIO which will lower my cost basis on this stock

Don't Buck the Trend

I'm a sucker for reading material and author's who are willng to share their investment styles and what has worked and not worked for them in the past. Right now I'm reading "The New Day Trader Advantage," by Jon D. Markman. In his book, he reminds us investors/traders about trend and market momentum: (1) A stock's sector can account for up to 50 to 60 percent of its movement, up to 20 percent from market cap and valuation group, 10 percent from its region, and the remaining falling to the discretion of the investee.

With all that in mind, I typically research the Monday edition of Investor's Business Daily for its 197 Industry Sub-Group Rankings, which is based on 6-month price performance. The current groups making up a majority of the top 20 are: Oil & Gas, Machinery, Metals, and Chemicals. With all this mind my focus has been in the Chemicals and Metals arena, specifically RIO, AGU, and SLT. I also like the fact that each of the afforementioned stocks are foreign based: RIO (Brazil), AGU (Canada), and SLT (India) Right now, I only own SLT, but waiting for some pullback on RIO and AGU before getting back in. Just a few of my thoughts. Anyone else willing to share what works for them? HAGO Justin

Latest and Greatest

Finally got into Vasco Data Security INC (VDSI) via an options play. I bought a Sep 10 call for $3.70 and I like the fact that I have until Sep to let this trade play out, which is the great thing about options. I am still a newbie to the world of options and still have plenty to learn. In this volatile market, it has been my investment in calls/puts, which has earned my the most money this year. If you are an investor interested in learning more about the options, I would recommend checking out this book: "Understanding Options" by Michael Sincere. He lays out the basics in very understandable terms and it has been the book I reference the most.

Just wanted to bring everyone else up to speed on some recent trades. I have added to my position in Sterlite Industries Limited (SLT) and re-entered into Companhia Vale do Rio Doce (RIO) in after market hours trading. HAGO Justin

RIO is Back

Got back into RIO at $31.60. If continued weakness is prevalent then I will look to load up some more in the 30's.

Sell SLT Buy RIO

I have a limit order to sell SLT @ $27.07 and a limit order to buy RIO @ $31.50

SOLD Rio

I've been in Seattle since Sunday and I have been selectively tracking the market today, but I decided to sell my stake in RIO at $34.43, which was purchased at $31.30.

Today's Action

Just wanted to send out a quick note that I established two new long positions today. I Finally got into RIO at $31.30 and SLT at $23.82. I chose these positions as overseas plays on basic materials/metals play. In addition, the SLT gives me exposure into India, while RIO latches me into the Brazilian market. The charts are courtesy of StockCharts.com

On a quick side note....did everyone catch a glimpse of the 14% down shift in DRYS? Like my post yesterday mentioned, I thought the carriers were headed to lower territory, however I did not expect this type of sell-off so quickly.

ETF Watch

I was unable to get into RIO the past two days, but right now it's down in pre-market trading, so hopefully this downward trend continues into the open. Depending on how much further it drops, I may try and get into around $31.00 and change or lower. The telecom is still looking good, so may shift my focus from individual international telecom plays and pick up an ETF, which will hold some of the companies I like.

Dead Cat Bounce

Anyone else agree? The U.S. pre-market is scheduled to open higher today, which truly means nothing, as we have seen over the past few months due to the extreme volatility. The rest of the world was down today, yet I think we will close up today, and gap down again on Thursday. I am looking to get long on a few positions if they drop down into my price target. I will look to get these filled today, but most likely they will not get filled until Thursday. Of course, I may be completely of base in my analysis, but time will tell. Stocks on my watchlist still include the telecom plays I posted about earlier, with a few others like: RIO and BOOM.

Santa Claus Comes to Town

The foreign market has done its job and is up pretty much across the board with the Nikkei and Hang Seng up 1.66% and 4.09% respectively, so you may be asking yourself "Is Santa Claus coming to town?" Well according to the bean counters and retail analysts retail sales were up 7.2% to 16.2 billion for Friday and Saturday, when compared with last year. Speaking of strong, oil is up again, so will we see $100 oil by the end of the year? In my opinion, this would be a psychological blow to the market if we do see oil reach and sustain these levels.

Enough of my rambling on macro issues. A couple of stocks I'm going to keep my eye on this week are: RIO, CMED, TNE, and SSRX, just to name a few. As a reminder I still have puts on the QQQQ's and CSCO. As a final thought, I have come across a cool site, Contrary Canary which details out his picks and provides charts and insight to specific trades, so check it out.

Her Name is RIO

and she dances on the sand....Wow opening up a blog with Duran Duran. Anyway I picked up some RIO on Friday in the low 33's and I am quite happy with my paitence on this stock. In my opinion, I am killing two birds with one stone by capturing a stock that is in Brazil and in the metals and mining industry. If you look at the chart in the above link I still think the stock has some downward motion since the technicals are not all that great. This is a stock I'm looking to hold onto as an investment vice a straight up trade. If it drops lower near its 50 day moving average, I believe I will scoop up some more shares. I continue to pound the table on the international marketplace and the value that it provides during the U.S. fluctuation. I believe investors for the long term can't loose sight that this is a global marketplace and if one ignores that aspect then great opportunities are being missed.

Bottom Fishing

Hello and good morning to my fellow traders and investors. Well I'm taking a shot at getting into some of the stocks I like. I'm probably setting my price to low and they will not get filled, but just in case they do I will be very happy. If they don't fill I can re-evaluate later today. I got a stop order for my Exchange Traded Fund symbol EWA. I got in at $23.00 and have set my stop at $32.00. The four stocks I'm trying to get into today are VIP, CNH, RIO, and POT. As you can probably tell I have more confidence in the foreign markets than the U.S. through earnings. My lowball price into these hopefully will be: VIP= $27.00; CNH= $57.79; RIO= $32.24; and POT= $103.79. Again just trying to get in off a quick drop and sell at a feasable recovery point.