CVX has made a strong bullish moved from it low about 102.36 close on 1/30/14 There has been a strong gap and is trading above 10 20 and 50 EMA , and just closed above the 100 SMA. The gap at 107.37 should offer a strong support for a BPS 107/106 EXp 2/27 for .11 or 3/6 for .16. Should your want to own the shares a 101 put sale will bring in .65 approx.
What makes anyone think this time is "different." The SPX decoupled from high yield credit (HYG) in 2013 for the first time since 2007. The onslaught of poor US economic data will continue to weigh on equities regardless of the desperation to hold onto the feel good story of growth. I expect a 20 percent pullback to the 200-week EMA at 1,810.
CDS selling is inversely correlated to the volatility index. It appears that selling credit default swaps to nervous nellies when the market does well is profitable. This is not a projection, just an observation.
BestBuy has been consolidating since the beginning of July. Earnings are due tomorrow before the opening, and our IV% is at 56%, so I am looking for a play here to collect a credit. Historically looking at BBY we can see usually see a slightly bullish move after earnings (EPS, which is usually beating estimates). Because of this, and being at the top of this...