Slope Of Hope with Tim Knight

Harry Boxer's Charts of the Day

Originally published on TheTechTrader.com.

Hedging a High Yield Long Idea

Hedging a High Yield Long Idea

Hey Fellow Slopers,

In a post Wednesday morning ("High-Yield Long Idea Idea Continues Strong"), Tim noted the strong performance of his long position in the SPDR Barclays High Yield Bond ETF JNK. Back in August, I looked at the cost of hedging JNK, but I thought it might be worth taking another look after seeing Tim's post. It turns out JNK is pretty inexpensive to hedge right now. The table below shows the cost, as of Wednesday's close, of hedging it against a greater-than-20% drop over the next several months.

A Comparison

For comparison purposes, I've added six of the most actively traded ETFs to the table. First, a reminder about what optimal puts are, and a note about decline thresholds; then, a screen capture showing the optimal puts to hedge JNK.

High-Yield Long Idea Continues Strong

Swing-Trades To Get You Through The Day (by Ryan Mallory)

We're finally seeing some weakness out of this market as we have pulled nicely off of the day's highs and into the red. But the constant theme of this market so far in 2012 is the seemingly endless bid underneath this market. We haven't seen it kick in yet today, but one can't discount that still happening. We also have a lot of potential news catalysts in the form of the FOMC Statement on Wednesday as well as the GDP report on Friday. 

With that said, take a look at the setups below. You have 2 1/2 longs and 1 1/2 shorts (you'll see what I mean). All of them provide tight stop-losses to prevent any major damage should the market go against you, while offering quite a bit of reward should the market confirm your market predisposition. 

A Trail Mix of Trade Setups (by Ryan Mallory)

How long the bulls can put a constant bid underneath this market is anyone's guess. There's no doubt we are overbought beyond measure, but that seems to hold little value these days. With that said, I've provided a balanced assortment of long and short setups. What's interesting, is that both long setups revolves around oil, while one of the short setups below is for USO. Go figure.

LONG: Tesoro Petroleum (TSO)

Harry Boxer's Charts of the Day

Originally published on TheTechTrader.com.

The Joy of Junk?

Here's an interesting breakout of an ETF which not only has a really cool pattern but also pays nearly an 8% yield.

Clean Breakout by Lennar

Nice Base for Garmin

Two Stocks To Swing Trade: MMM & IBM (by Ryan Mallory)

Here are two solid trade setups that I otherwise would not have found had one of the traders in the chat-room not shown them to me. The first one International Business Machines (IBM) provides a great head and shoulders setup, while the second one, 3M (MMM) provides a great setup to go long on - a breakout, if you will.

SHORT: International Business Machines (IBM)

LONG: 3M (MMM)

Enjoy your weekend, and make sure to join us for free on the SharePlanner Trading Network.