NVDA break resistance line

My last post about NVDA was on Nov 9. The dec call was a profit position. The stock price was $13.16. Today NVDA close at $17.88.

Up about 30% in less than 2 months. Also NVDA has broken the resistance line at $16.5

It may because of Santa Claus rally but still the tech sector now is a leader again.

The entry point for buy high - sell higher has been missed. It still can go higher but risk reward ratio is not really good

We should use buy on support strategy to enter long position in NVDA. Buy two months call option.

Wait for NVDA to drop near support around $16.50 then we can long 17 Feb call.

Best regards

Snip

Dollar broke the downtrend

The chart of dollar ETF (UUP) shows that dollar has broken its downtrend line.

The volume is quite high. It can show the potential new uptrend for dollar.

Today the stock market is up, dollar slightly up, gold down. Looks like there is changing of relation between three of them. Usually dollar went down while stock market and gold went up.

It looks like the big fund institution is moving their fund from gold. Their fund then can be allocated to cash or stock market. And they stop shorting the dollar. Big institution can not move their funds in only one day, so they have to start early, in anticipating the Fed may increase the rate in 2010

UUP has broken the downtrend line, retested it and go up. Based on technical analysis it show probability that this is not only a regular bounce for dollar.

So I recomend go long on dollar, buy on support for UUP. The long call is not really expensive.

Stock is moving sideways with bullish bias. Continue to buy on support for swing trading.

Best regards

Snip

Take Profit for VALE

VALE call option that I recomended two days ago has risen.

27.5 Jan 10 call @$1.67 -->2.05, profit=$38
27 Mar 10 call @2.98-->3.40, profit=$42
28 Mar 10 call @2.47-->2.85,profit = 38

Price is taken from live bid price when this posting made.

I recomend to take profit and go weekend in happiness.

Best regards

Snip

Buy on Support: VALE

We have buy on support opportunity for VALE. Today VALE is holding on support MA 50 days.after went down several days. Stochastic show no more overbought condition

The options that can be choosed:

27.5 Jan 10 call @$1.67
27 Mar 10 call @2.98
28 Mar 10 call @2.47

The price is taken when market still open.

You can enter now or wait until 10 minutes before market close for candlestick up confirmation.

Please buy with proper money management.

Best regards

Snip