All of my indicators remain positive.
Given the strong market up-trend, I am looking for some stocks in strong Stage 2 up-trends which have recently broken above their green line base. Facebook (FB) is a perfect example, as this weekly chart shows.
FB broke above its green line top (all-time high base of at least 3 months) in September, re-tested that line in November, and now is in a nice up-trend. Also positive is that FB came public in the last 2 years and has earnings that are increasing at triple digit rates. I bought some FB and sold weekly out of the money calls on it. I am content to collect time premiums for FB that equal more than 1% each week. Writing weekly covered calls on stocks and ETF’s appeals to me because the position lasts only a week and can deliver large time premium income. Every Friday I can reassess whether I want to repeat the trade again. Alan Ellman and I will be doing a workshop on covered calls for the DC Metro AAII Chapter in July. Alan’s books, listed on the lower right of this blog page, are a great way to teach oneself about covered calls.
I am also writing covered weekly calls on the gold ETF, GLD. Gold looks to me to be in the beginning of a Stage 2 up-trend. Check out this weekly chart. GLD is now above its critical 30 week average. It will be in a full Stage 2 up-trend if the 30 week average (red line) curves up. Meanwhile, I am content to collect time premium income each week.