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More on MCD. Please check the chart. If MCD hits $88.5, it will confirm the bearish trend but you will lose a small chunk of profit by entering the trade late.

Good point but it does not mean that it will start to outperform from Jan 1st 2013. It means that most probably it will be a better performer compared to other DOW components by Dec 30 2013. It does not even mean that it will have a positive YTD gain in 2013. MCD can have -7% YTD in 2013 and...

My thread was initally about MCD which is in bearish trend and today's action confirms what I said (I know just a day). Basically you cannot prove your theory in a chart after it happens. Making a case to short MCD without having followed its recent news is diificult. Then I went off tangent and...

Check out SPY weekly option prices. Comparing out of the money Calls and Puts premium shows that the there is a huge fear of market dropping 5% or more by this week. 145 Call bid/ask is 1/2 cents while 135 Put bid/ask is 6/7 cents.

I try to squeeze my ideas in one thread. Here is what I believe: 1- Retail sales are down. Even online sales are down. People buying stuff online also affects restaurant sales (including MCD). 2- We will see a huge drop in the market on Wednesday (after XMS). Market will start to get real...

Ackman tried to pump up JCP but he couldn't. He has a huge long position on JCP. I bought his idea that HLF is a short but I hate myself that I did not act. The first time that I got the news HLF was at 39 and the Jan 35 PUT option was at $2. I wanted to buy some PUTs but I didn't. Now the...

Another stock to consider shorting is ADI. It is in semiconductor sector. Cover target is $40. You can short the stock and then sell Jan 40 PUT to beef up your profit. Their prediction for next Q is that sales will be down 6 to 12 %.

Here is the daily chart

MCD has been the DOW's dog this year. Its performance has lagged the market. MCD warned about the sales and the stock dropped. Last month sales was a little bit up relative to analysts estimates and the stock rallied from 86.5 to 90 but we see more sign of weakness in the stock. The fact that...

TF is also Russel 2000 future that can be traded when the regular market is closed.

Usually small cap outperforms at the end of a bullish cycle. When a bearish cycle starts, small cap stocks were sold fast and investrs flock to safety by selling small cap and buying blue chip stocks. Russel 2000 has been outperforming S&P lately but it will not last specially if maket sells off...

If you are looking a little bit long term, you can use the same strategy for ADI and TXN. Check out the charts. I do this trade a lot. Now it is a prime time to short ADI and buy TXN. You will get 4% in less than a month. Good thing is that the risk is very limited or none (relative in stock...

Ackman said that he has not shorted through PUTs. Only stocks.

Thanks for correcting me and completing my post.

I believe Maria deserves a 20% raise for this interview :) Anyway this is what should happen : 1-Based on all the interiews that I have heard and watched on CNBC and Bloomberg (which is bettern than CNBC), all fund managers are expecting a clear deal and any partial deal and no deal and...

Here are the rules to trade options in 401K and IRA. If you know what is option, you would know the rules without anyone telling you. I have done all of these trades so my post is based on experience. Also some brokers let you do more compared to others. My experience is based on Fidelity and...

If had used the same analogy to AAPL, you were broke by now. Nothing goes up for ever. Overlap IWM and SPY chart for 4 years and see what you find out.

I agree that IWM is behaving more bullish and that is why I am on the other side. By the way, most of the time, when I go long on a stock, I do it by selling naked PUT (a little but out of the money). For example at this moment selling PUT 13.5 and 14 weekly PUTs make sense. if you are assigned...

I believe TZA is architected based on future PUTs of RUT. You can get more info online. IWM has been very strong recently so I expect more pullback once the market starts to falter.

I cannot guarantee it but the way I have been trading I am up 32% in my IRA YTD and 117% in my trading account.