Teekay (TNK)

Teekay paid us AGAIN on Friday!  They received a buy rating pushing the equity back to 12, this after a underperform rating a couple of weeks ago.  I'm still in and still buying monthly.  Can't beat the dividend and if we get back to 2007 levels Sharkwater Meeting in Bora Bora in hut over the water!

Happy Trading

Playing the Unrest in Egypt

After Friday's selloff, what are us little guys to do? If we learned anything from last year, it's not to try and get in on shorting the market while the worry continues since we usually don't have the time to sit in front of strategy desk all day and catching intraday or week corrections.  However, we know the Greece issues caused the market concern but still continued its rally after it quieted down.  If we stuck to trading outer-month options verses front-months we would done much better last year than we did.  So, I am taking advantage of the pullbacks but being cautious with quantities this time as there is potential for a good correction this time.  However if you are already "all-in" with your account, either hang on or double down on significant pull back but don't sell yourself short this time.

Cotton futures will probably spike since Egypt is a major exporter and as we all know oil is to be little affected directly, however if ships can't get it out of the Suez canal then you pretty much have the same effect of not being able to produce oil!

Happy Trading...

Upcoming IPO's

Symbol Name Price Range Shares Expected Pricing Date


NPTN NeoPhotonics $9 - $11 7.00 M Week of 01/31

CDM China Century Dragon Media $6 - $7 1.40 M Week of 01/31

TRNX Tornier $19 - $21 8.75 M Week of 01/31

BHZN BioHorizons $15 - $17 5.63 M Week of 01/31

EPOC Epocrates $13 - $15 5.36 M Week of 01/31

IFT Imperial Holdings $14 - $16 16.67 M Week of 01/31

ECYT Endocyte $13 - $15 5.35 M Week of 01/31

TBOW Trunkbow International Holdings $5 - $7 5.00 M Week of 01/31

MEDH MedQuist Holdings $10 - $12 7.83 M Week of 01/31

PCRX Pacira Pharmaceuticals $14 - $16 4.25 M Week of 01/31

ACRX AcelRx $12 - $14 5.77 M Week of 01/31

KIPS Kips Bay Medical $8 - $10 2.75 M Week of 02/07

AVO The Aveon Group L.P. $14 - $16 15.70 M Week of 02/07

GEVO Gevo $13 - $15 7.15 M Week of 02/07

CLRS Clarus Therapeutics $11 - $13 5.00 M Week of 02/07

Happy Trading...

Currency Trades

So with current unrest in Egypt, trading currencies is proving to be either, very profitable or sending you to the poor house, shorting the Euro is the right move today while long the dollar is even a better trade.  It is one thing to speak about how the dollar shouldn't be the measure of other currencies when the globe is at rest but a little uncertainty and the world goes back to assurance.

Not to say that this is a long term trend but for traders, like last time, shorting the Euro is making money.


Happy Trading...

Accuray (ARAY)

We haven't talked about ARAY for a while, if you remember we traded it a couple of times while waiting for corporate news to keep up with product potential.  They easily beat expectations yesterday and are trading above 8 on strong volume.  Not much options interest in this name but if you want to buy it I would sell some puts and if it does pull back you will at least own it at a discount.  If you really want to own it you can buy some 7.5 calls as the premiums are making break even around 8.50 or buy it outright today.

Happy Trading...

Citi (C) 5 April Calls

Citi is holding a great base around 4.80 on good volume.  We are buying Citi 5 April calls in anticipation of a run-up through next quarter's earnings report due early April.  Buy at or below .22 and adjust as you layer in based on the underlying direction...

We are also continuing to pick up Jan 2013 4.50 calls on these pullbacks,  still above our intial entry points.  If you took your profits prior to earnings, this is a good time to put them back in...

Happy  Trading

Some ideas to queue you up...

A couple of ideas to keep in the back of your head as you research stocks, watch CNBC or read the paper...  These could be game changers delivering tremendous returns over time...

Continued cloud computing enabling technologies, everything as a service SaAS, TaAS... No more owning anything but the machine you plug-in to the internet with.  All driven by ad-revenue and social services...

Smart energy and associated products, smart meters, better electrical transmission technologies, smart grid etc...

Breaktrhough medecines and medical technologies to include personalized medecine.  Extremely more affordable personalized DNA mapping leading to effective preventative protocols preventing disease before they have a chance to start.

Happy Trading...

Some weekend updates... EUO, AAPL, C

I am just getting into currencies, not brave enough to trade FOREX yet so have been looking at trading calls on ETF's. This tremendously reduces my risk and exposure but keeps me in tune by trading for real.  If the euro/dollar can manage a close above $1.3307, the 50-day simple moving average, get out of EUO calls and long the Euro.  Shorting the USD is the next currency play.  American debt is mounting and may potentially lose its triple A credit rating...

So le'ts review one of the top calls made this year, AAPL.  My post here had us in the 2011 Jan 200 Calls:  http://www.sharkwatertrading.com/2010/03/aapl-2011-200-call-update-others.html when they were approaching 31$.Currenlty they are trading at 148$, a 500% return for the year if you kept them!

Citi is performing as expected.  Need to watch Tuesdays earnings report.  I recommend selling in the a.m. if you are happy with your profits or holding steady for the rise to 6 this year.  Good possiblitiy of a pullback if they don't hit all investors expectations but should hold steady around 5 before next round of news could push it higher...  Need to see the improvements to see the movement.

Happy Trading...

Shorting the Euro (EUO)

European debt is mounting, Euro is dropping, oil is jumping.  China will be the next world's largest economy by 2020...  This could be an American folk song in the future, probably not a good future.

With the Euro being weak I have chosen to buy long calls on a short Ultra ETF, the EUO.  Purchasing ATM May 22 2011 calls.  The Euro scare of last year made many people a ton-o-money.  It quickly recovered after the commitments from internal states but the fundamental problems are still there.  It has been making headlines, although fairly quietly, lately but that is the time to start getting in on a trade...

Happy trading...