Monday, July 9, 2012

Market Update 7-9-12

So I took profits on Walmart at the end of the trading session and it did well.  At the end the call option was up to 1.48 so to revise my previous post you would have made $58 today ($444-$372-$14 = $58) had you got in right after my post.

I pulled out of my ATT trade because it just wasn’t moving.  I know it will be just my luck and will move tomorrow but that’s fine because I can go right back into to Walmart tomorrow and make it back.  ATT is has passed the Yahoo analyst mean target price of 34.42 and it is overbought on the daily, 60 and 30 minute chart.  I think because of the current market conditions and the technical setup it’s going to move lower to a support level.  We had a good run.

I’m going to keep banging the table on Walmart and watch Target (TGT) to see if it will move tomorrow.  As far as stock valuation goes, Target looks better than Walmart but the market responds to emotion more than anything which is why many companies that look good in terms of valuation right now still are trading on the cheap.  My GE trade still hasn’t popped but the fundamentals look great and the technical setup looks great as well.  It’s just the way it goes.

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