12/10 Watchlist

AET has penetrated resistance decisively on the third day after a bull signal and is a buy at 31.70 or below with upside resistance around 33.70. See the discussion in yesterday's Watchlist.

I've opened a bull put spread (p31/-p32) in AET at 31.70 for 0.47 credit. The position is profitable on expiration in January from about 31.55 upward.

New signals among the high-volume stocks and etfs, with the signal, mfi confirmation status, and the trend:

• QQQQ, bull, confirmed, sideways
• ORCL, bull, confirmed, sideways
• BMY, bull, confirmed, sideways
• SBUX, bull, confirmed, sideways
• UNH, bull, confirmed, sideways
• QCOM, bull, confirmed, sideways
• XLK, bull, confirmed, sideways
• CVS, bull, unconfirmed, sideways
• BAX, bull confirmed, sideways (at resistance following strong gain)
• MT, bull, confirmed, sideways

BAX has some interest. I'm not opening a position because of the sideways trend, but it could be a play.

The rest are mainly whipsawing in confused puppy mode -- a series of bull and bear signals every few days.

Indicators: The VIX bear signal (bullish for stocks) noted in this morning's Morningline has disappeared. Other indicators remain as described.

Holdings:

UNG had a sharp rise today and the December covered call (-c9) will be exercised at this level. The trade remains profitable.

HPQ, a January bull put spread (p40/-p50) remains in bull mode iwth a price rise today.

KO is trading above the upper end of profitability at expiry of the January iron condor (p50/-p52.5/-c57.5/c60).

X, showing a bull signal from yesterday, contrary to my Janurary bear call spread (-c40/c41), is pulling back a bit at the upper end of yesterday's trading range.

Currencies (paper trade):

USD/JPY remains in bear mode and is trading within yesterday's trading range. I continue to hold my short position.