MomentumOptionsTrading.com Midday Update for 7/28/2014
Another Down Monday/ Profit Alert (ALXA)!!!
The bulls are in danger of dropping another Monday session and need a win today to get back their momentum. With a second half of trading to go, they are trying to make a push into positive territory following another back test to support at the open but the bears have other ideas.
Earnings season continues to be busy with another packed schedule this week. After today’s close, Advent Software (ADVS), Denny’s (DENN), Eastman Chemical (EMN), General Growth Properties (GGP), Herbalife (HLF), J & J Snack Foods (JJSF), Plum Creek Timber (PCL) and Range Resources (RRC) will report their numbers.
Herbalife (HLF, $66.64, up $0.58) is the most interesting trade given the recent short-squeeze. Bill Ackman has made his huge short position in the company well known and paid dearly for it following last week’s surge from $54 to $67.
His most important presentation ever failed to produce a smoking gun and another short-squeeze could be in play if Herbalife beats Wall Street’s estimates. The numbers they will need to match or top are $1.57 a share on revenue of $1.36 billion.
Heading into the second half of trading, the Dow is down 24 points to 16,936 while the S&P 500 is lower by 4 points to 1,974. The Nasdaq is falling 13 points to 4,435 and the Russell 2000 is tanking 10 points to 1,134. The VIX is up 0.39 to 13.08.
I have a Profit Alert on a LEAP option trade for the Daily and I have an additional Profit Alert coming for the Weekly Wrap in the next 30-45 minutes.
I want to make sure I get these Profit Alerts out, first, to lock-in wins but I could also have a New Trade (or 2) for the Daily later this afternoon so stay lock-and-loaded into the close.
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