October 6th US Trading
Okay, here’s my trades for today:
- AMZN Jan ‘07 $35 Buy Call and AMZN Jan ‘07 $37.5 Buy Call. I’m trying to use the Christmas buying season that usually propels Amazon’s profit (hence, increase in stock price). The two different strike price is actually my little experiments on which trades goes best with this particular stock, is it in/at-the-money or out-the-money. My other reason is that the stock already plunge quite far last September (due to decreased earning estimate). There’s nothing special on technical chart though (not that I’m aware of).
- F Dec $7.5 Buy Call. Ford and the entire automotive industry in the US isn’t looking very well. However, there’s already some positive sentiment on this stock over Nissan/Renault talk (previously with GM). The only hint on the technical chart is that the market is quite “confused” on where should the stock goes. Let’s just give it several days/weeks and see where its headed.
- VLO Jan ‘07 $52.5 Buy Call. Ok ok, I know that oil company got hit big time by the sudden decrease in oil price. But for how long? I think I should write an article about this but in-short: OPEC cuts its daily production, the decrease in oil price is based on a rather soft hurricane season, the growth in China is still high, although with a slowing economy in the US is a big concern — The Fed promised not to raise the interest rate anymore. So yeah, by the end of this year, I think the oil will still rise beyond the $60 level. Plus, Valero Energy corp is near its all time low and the chart shows that it’s on the buy region.
All of those options will be executed today at market price.
Amzn is a good play for the christmas season for sure. Ford on the other hand looks VERY VERY shaky. Not only because its daily net loss reaches in the millions, but because the competition is wiser. Toyota gained substantial market share with its cheaper, more economical vehicles while Ford couldn’t get rid of thousands of gas guzzling Excursion. Americans just don’t have the patience to wait three years for a decent Ford automobile to come out. By that time, most Americans will have established strong relationships with Toyota, Honda, and GM. Ford may have dug a well rather than a hole.
Ford stock looks fairly valued. Let’s see what Mulally can do.