SWN Call & Put Options – Up 200%, Market is taking profits (entire market up around 20% from Sept-Nov 2010)

I just recently sold my SWN Calls up 200% during this weeks move at my GTC target price. The trend continued up so two days later I repurchased SWN call options but within the first 7 market hours (within 2 days) the stock wasn’t moving and my instincts told me to sell for a small loss because the stock dropped a small bit. The charts were still trending up, but starting to look like the stock was getting sleepy and tired up 20% within 2 weeks (after earnings move). I sold my options. Today the stock is down 2%. So I was smart to sell it quickly. The news was becoming more negative with the G20 meeting and China currency deal. The entire market is moving down now and I repurchased SWN put options and plan to sell out Monday if the negative news continues and just ride the short trend. I plan if the market continues to move up this profit taking will be just 2-3 days. If I’m wrong then I’ll sell out Monday anyway. I figure since SWN was getting lots of “clouded doji stars” and spintops at the top it is probably a good indication that the stock traders and institutions are starting to sell some of the profit off and changing their minds if they have a big position. The technicals basically meant (if true) that a lot of resistance was at the $39 stock price level currently. I’m not saying the stock won’t go higher, but right now it should come back below $37 before moving higher. The stock was sitting at around $33 for a while therefor at $39 is up 20% rather quickly. I think it will move under $37 Monday through Tuesday if the entire market continues to downtrend until a final world wide decision is made on U.S. and China currencies.