Blog Post On: 7/15/2010

The home page of MTR Investors group now shows four of the top covered calls.  Depending on the Return on Investment (ROI) you may see the top four options for the current or next expiration month.

Registered users can use our Option Search Engine to search for Covered Calls on over 900 Large Cap Stocks. Why large caps? This provides a level of safety and higher quality of earnings. Other covered call sites may show you options that return 20% but typically these are on high-risk small caps and typically bio-tech. Those types of trades are not for the faint of heart.

If you want to start writing covered calls to earn income on your position we encourage reading the CBOE documentation on covered call writing. It is a very simple process and if you are holding stocks for the long run why not "rent them out" by selling calls and earn income on those positions?

Blog Post On: 7/11/2010

In January of this year the MTR-EM indicated that 3-6 months out there could be some consumer spending issues that may impact stock prices. We did see a downturn in the market that was probably much stronger than most anticipated. Our MTR-TM has been whip-sawed on recent signals.

Over the past two months the model started showing improvement where employment and real-wages (wages adjusted for inflation) are on the rise. This is in part to lower energy prices in the past few months. Typically when real-wages shows +2 to +4% the market typically follows 3 to 6 months later. 

The model is now showing zero year over year changes.  This is a positive sign over the last few months. We will be watching this model and if we see a +2 to +4% rise in real-wages in the next few months the 4th quarter of 2010 should work out well for the stock market.

 

Blog Post On: 6/27/2010

The last two signals for the MTR-TM reflected the volatility and indecision in the market. MTR-TM had a down signal on 5/6 only to see the market reverse to the upside and pull back to levels below the market down signal. The market up signal on 6/16 saw two days of Doji candlesticks formations that indicate indecision in the market and soon the market pulled below the market up signal.   

The major U.S. indexes, other than the DOW closed higher for the day on Friday 6/25. The volume on Friday exceeded levels seen in months. See the combined volume charts further down in the post. 

Decision Economics made an interesting and positive point about China's currency move:

"China currency moves increase “soft landing” odds and modestly ease risks to U.S. trade. DE strategic equity allocation increased slightly to 65% from 60%. Fixed income allocation stays at 30%. Cash and alternatives reduced to 5% from 10%."

Stock Market Timing Model (MTR-TM): Market Up Signal on 6/16/2010

MTR-I: Week over week -3.56%
RSI:  RSI turned down below 50 and sits at 44.19 
MACD: -20 and trending up. Crossing zero to the upside would be supportive of an up move for the market
Volume: Volume spike on all the major indexes doubling in some cases. This could be a sign off some fears abating and traders getting back in the market late day on Friday. The VIX was off -4%

All of the major indexes are now hovering over a major support level. The indexes also closed with a Doji Candle indicating indecision. 

Volume on the major indexes took a wild ride on Friday. Finishing the day double in volume in some cases. Since most of the major indexes closed up this would qualify as an accumulation day. The major indexes also showing a Doji Candle on Friday, indicating indecision was also reflected in the volume.

All of the Advance/Decline Lines ticked up on Friday.