Trend Technician

I think a trading range is a best case scenario at this point. The bulls seem to have run out of steam. The only thing that makes me hesitant is the fact that so many people agree. Analysts on the whole seem to range from neutral to bearish. While there are a few out there who are rah-rah-ing the bull market claims, they really seem marginalized. I’m never comfortable when the consensus is agreeing with me.

I’ve been liking covered calls and I’m liking them even more now. At best we’ll continue with a bull rally I don’t believe in and very possibly worse. If I left my positions uncovered I probably wouldn’t have the conviction not to take profits anyway, so I might as well get paid for putting in my limit order.

When I was in college, my cousin and I decided that we had a brilliant stock market strategy.  We would read the Wall Street Journal in the morning, find companies that had positive stories about them and buy them in the morning and sell them in the evening.  In the process of trying to implement this naive strategy, I started reading everything I could get my hands on in the stock market.  One of the first books that I started reading was Trading For a Living by Alexander Elder.  In the intervening time I have yet to find a book that does as good of a job of explaining technicial analysis indicators and their use. [More]