This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top Takes From RealMoney

Pair-Trade Strategies

By Timothy Collins
05/15/09 10:34 a.m.

Though this strategy keeps you on your toes, it does offer some compelling risk/rewards, especially on option expiration day. With both the SPDR (SPY) and ProShares Ultra S&P 500 (SSO) up for the day, we are going to buy 100 shares of the SPY at the market, and short 200 shares of the SSO at the market, covering our long SSO May 24 calls with short shares, and covering our short SPY May 89 calls with long shares. If the SPY closes at or above 89, this trade, which originally cost 65 cents just a few days back, will bring in a little over 90 cents. We are not doing this on the entire position but on a good-sized chunk.

Positions: Long SPY shares, short calls, Short SSO shares, long calls

Home Depot

By Scott Rothbort
05/15/09 1:04 p.m.

I have started a position in Home Depot (HD - Get Report). All of my channel checks, observations and discussions around the country indicate that we are in the beginning of a new wave of home improvements.

Also the company has steadily reduced debt the past several quarters during the economic slide. The company reports Tuesday and I am willing to buy stock ahead of what could be a positive surprise for the quarter.

Positions: Long HD

Home Depot Technicals

By Gary Morrow
05/15/09 3:13 p.m.

Home Depot is nearing an important support area. Scott Rothbort posted his bullish take on HD earlier, so I thought I would add my technical take as well.

I am also long the stock and have been patiently waiting for a healthy pullback to buy more. The stock has had a great run since completing a triple bottom just below $18 in early March. Volume in the early stages of the recovery was very robust, easily pushing the stock back above resistance at both its 50- and 200-day moving averages. The stock began to run out of steam in late April as volume declined while prices continued to rise. This month began with a series of loses -- seven out of the first eight days -- as a healthy pullback began. Volume continued to stay well below average during the downside action, indicating no rush for longs to dump stock.

With today's 1% decline, again on very light volume, HD is very close to a key support area. The stock's upward-sloping 50-day moving average, which crossed through the 200-day last week, is just above $24. Just below $24 is a breakaway gap left behind in early April. This gap-higher action on April 2 was on the heaviest volume by far for the month. Slightly below this support is the 200-day moving average at $23.50 as well as the one-third retracement level of $23.40.

A test of this support band, from $23.30 to $24, would offer a very-low-risk buying opportunity for Home Depot bulls. A close below $22 on accelerating volume would put the rally in trouble.

HD Daily (NYSE)
Home Depot
chart
TradeStation

Position: Long HD

For free trial to Real Money, where you can get updated trading and investment ideas throughout the course of the day, please click on the tile below.

This article was written by a staff member of RealMoney.com.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FCX $20.99 0.00%
ESEA $0.75 0.00%
HD $112.16 0.00%
LO $72.01 0.00%
SBLK $3.19 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs