the short term trend reverses, page-4

Hi commy,
i misssed out on putting the down payment on my house by oh such a smidge. But i also bailed out of my RIO shorts on friday. . .. the old saying "leave a little bit in it for someone else " - i like that it has worked well for me. I made a lot of money since december selling calls on RIO whilst the monthly stoch was trending down. ( selling calls as the daily peaked and buying back when it went close to oversold).

The monthly is now oversold and i think RIO, having not fallen below 33.80 is a BUY. IMHO - (Don't think I'm ramping because I'm not. noone here, i think, could have any effect on the price movements of the large blue chips, esp. a behometh like RIO IMO)

I went in quickly, on friday after getting rid of my sold calls, and have purchased several of the $35 april calls for 17c.(theres not an uptrend in place at the moment to risk selling puts and i have been a little insomnic lately) I do think that RIO is due to make a new top i.e > then $38 this year. I personally think that if there aren't any terrorist activities - BOMBs etc then RIO could potentially be at $36 by the end of this month ( datasponge mate you may escape scathed free!. Risky business selling puts. Imagine if you had sold NAB puts the other day - you'd be in the poo poos)

RIO ended at > 2.4% up in the states overnight, however, i think that the US dollar weakened against the AUD so this might cap the upward movement of RIO on monday but $35 is a possibility. In the UK it ended up 2% and the AUD remained fairly steady (0.08% up) so a 60-70c rise on monday is possible i think.

My price target for this upward movement will be resistance at $35.50, as always, and if this is brocken then $35.80. If this is brocken then we really see a commencement of RIO's upward movement and i reckon >$38.

Anyway i am LONG and will stay in this frame of mind untill 33.80 is brocken. Or the next time the monthly's are in overbought territory.

PLease note to anyone reading this that this is definetly not advice nor a reccomendation. Do your own research etc etc etc.