Thursday was an opportunity for the bears and they could not manage a decline.

The opening rally to resistance on the S&P and Dow was met with some technical selling as you would expect. The morning spike failed and by mid afternoon it appeared the bears were going to drive it down for a significant loss. Fortunately they were denied the victory when the bulls rallied around a buy program that started at 2:PM.

As end of day rebounds go it was lackluster but at lease enough to close the major indexes in the green for a positive sentiment boost.

Futures have been dead flat all evening so it could go either way at Friday's open. If the S&P opens positive I want to add a couple positions. If it opens negative then cancel the potential plays. I only want to enter these positions if the market is positive at the OPEN. If it dips and then recovers please remain on the sidelines. There is always another trading day.

Jim Brown



Current Portfolio




New Recommendations


VMW - VMWare $75.42

VMW had the obligatory post earnings sell off even though earnings were good. It dropped down to $71 and has recovered to more than $75 on a steady pace. I am ready to try that $70 put again.

Enter trade only if S&P-500 is positive AT THE OPEN.

SELL November $70 PUT (VMW-10W7000) currently $1.35 stop VMW @ $73.25

Chart of VMW


WLT - Walter Energy - $87.10

Walter recovered from Wednesday's lows in amazing fashion with an $8 move. When the market eased off its gains on Thursday it retreated to breakeven but the put premiums for November are still inflated.

Enter trade only if S&P-500 is positive AT THE OPEN.

SELL November $80 PUT (WLT-10W8000) currently $2.00 stop WLT @ $85.00

Chart of WLT