Wednesday, April 23, 2008

Is the DOW on track? How about the Qs?

It looks like the Dow is right on track from my last entry. In my view it has broken out of it trading range and headed higher. I predict that the DOW will reach 13,3000 by the middle of May. If you look at Figure 1. the short, medium and long pitchforks all intersect on 5/13. We will continue to monitor this and see if I am right on this or not.


Fig.1

According to the Pitchfork, the Qs looks to continue right on track to hit the 50.50 dollar mark by the end of May as I predicted last entry as shown in Figure 2. We will continue to monitor the Qs progress to see if I am right or wrong.


Fig 2.


Next, I want to look at 2 trades I went in to last week. The first one is Figure 3, Western Digital(WDC). I bought the Jan 10 30 call for 8.60 It seems to be headed for 34 dollars per Andrews Pitchfork by the first part of May. I should be out of the trade before then with my 5%min. profit and on to next trade before then. We will see.

Fig.3

The other trade I wanted to go is one that is not going the way I predicted. Yamana Gold, (AUY). Look at the chart in figure 4. As you can see the price has dropped and is starting to move the wrong way away from the median line on the pitchfork. The price ihas fallen below the lower line on the pitchfork. If the price breaks the trend line drawn in yellow then the trend is headed down, not up. I will have to start to manage this position by selling call options against my position. So, much for listening to all the experts that say to buy gold related stocks.