A Saucerful of Secrets

A Saucerful of Secrets is not a technical analysis term, it's not the new pot and handle formation. It is the name of one of the best Pink Floyd albums either, one of the two PF albums on which Syd Barrett wove his twisted genius. The album reminds me of the markets in many ways, it takes many twists and turns and the market is most certainly a saucerful of secrets.

With NAB rising steadily off its $26 low 117 months ago to trade above $34.50 now is a good move. Along with three dividends totaling $2.49 plus franking credits, it has been a good investment.

The trust does intend to have numerous banking and investment holding over the years and does plan to hold these shares for a number of years. However, covered call options will be written when the trustees believe the shares have risen close to a short term high. Puts will be written to purchase stocks. Transactions will be executed based on some or all of the following considerations; technical and fundamental analysis, portfolio, tax and income.

Based on the belief that NAB is close to a near term high and it's shares will be able to be purchased for around current values within the next year the trustees will look at possible options priced at 35. As the MACD is rising the trustees are happy to to look for an entry over the coming weeks.