Tuesday, February 5, 2008

LVS Earnings. A Gift for the bears

I slept through a 3% down day... My pathetic puts may again rise...
OK, itʻs weird to have all these vacation/travel related stocks go up. i know itʻs based on earnings, but the future is bleak for this sector. Regardless, LVS reported a loss that was LESS than expected because of the $ flowing in on its China casinos (covering up the U.S. loss). Well, i consider this a gift. I am in no rush mind you to buy more puts. However, the long term puts just got cheaper. so, i hope for a follow through upward near the high 90ʻs to 100 for a nice entry. Ditto for WYNN.

Starwood on the other hand has broken past its 50 day EMA. $53 is about where i will get some long puts. if i still have $.

I bought AEO puts last week, one of the few trades that made sense. The action today portends a fall below the 50day EMA based on the candlestick. if a could only hope...

My portfolios lack a substantial amount of index puts( one each in FXI, IWM)... i have very little and failed to benefit from todays fall. FXP will be all over the place. China has inflation concerns and the worst winter in years is hampering their economy. It sure doesnt help in their preparations for the Olympics.


Gio said...

Hey Stuck, I found an old post where I wrote about Index Plays:


I, personally, like to play IWM puts. They have nice dollar increments, and lots of volume (liquid). Then there's SPY and QQQ, which you can make money on if you figure out the pattern.

Currently, the best inverse ETFs to play are SKF, FXP, SRS, and QRS.

You can even play sector ETFs, like GLD (gold), PBW (alternative energy), uh, DUG (short oil).

Gio said...

WYNN is a short when LVS reverses. Next retracement for WYNN on my charts is 128.