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Archive for December, 2009

Bulls Looking to Run

Monday, December 28th, 2009

9:00am (EST)
 
Futures are pointing towards a slightly higher open this morning as the bulls look to continue their recent momentum.  Dow futures are up 10 as we head to press, Nasdaq futures are up 4 while the S&P 500 futures are up 2.5.
 
Apple (AAPL, $211.50, up $2.46) and Amazon.com (AMZN, $139.11, up $0.64) are up in pre-market trading and look like a solid pair of pocket Aces to hold.
 
Apple got its price target raised to $260 as the company continues to gain share while generating tremendous amounts of cash.  Same with Amazon.  We were hoping Amazon would come back down the day after we made a 50% profit last week but shares haven’t looked back.
 
We are keeping an eye on both stocks and if there is another chance to get in Amazon.com we will alert you.  We have updated all of our current trades and subscribers can check the Members Area this morning for the updates.

MomentumOptionsTrading.com Weekly Wrap for 12/27/09

Sunday, December 27th, 2009

10:25pm (EST)
 
The market managed to close at new highs for the year Thursday although the climb has been slow and steady for weeks.  The bulls have been in control since March and we have been bullish all month, partly because we feel investors are still sitting on gains and may hold onto stock in the hopes of recouping more 2008 losses.
 
Last week we reiterated our short-term targets for the market which were 10,800 for the Dow; 2,275 on the Nasdaq and 1,175 for the S&P 500.   The Dow closed at 10,520; the Nasdaq settled at 2,285 while the S&P 500 closed at 1,126 on Thursday.  Obviously, Tech has led us higher but we still feel like the Dow and S&P 500 will catch up over the next two weeks and come close to our year-end targets we set in AUGUST.
 
Selling losing stocks for tax purposes can weigh on the market at year-end but we think the rally continues this week and next.  It has been easier to hold stocks over the weekend but there are still geopolitical events happening that we need to keep an eye on.  However, it seems the market has done well on Friday’s followed by steady Monday’s which leads us to believe the bulls are still hanging around and running the show.
 
The $900 billion Healthcare Bill seems to be getting some clarity and that could be a relief for the market as well.  The bill requires most of us to have health insurance or pay a penalty and forces most employers to offer coverage.  However, it does not contain the government-run health plan program that most Democrats are pushing for which is included in the House version of the legislation, and opposed by most Republicans.  The two sides will try to work out a compromise when 2010 begins.
 
We mentioned volume has been light as many traders take off for the week between Christmas holiday and New Year’s and there are no company earning reports worth mentioning this week.  This means economic data could provide some volatility as the market looks for clues heading into January.
 
Among the week’s few economic releases, here is what we are looking at:
 
Tuesday:  Redbook released at 8:55am; S&P Case-Shiller HPI due out at 9am and the Consumer Confidence report will be in 10am.  Also, the State Street Investor Confidence Index news comes out at 10am.
 
Wednesday:  MBA purchase applications released at 7am while the Chicago PMI comes out at 9:45am.
 
Thursday:  Jobless claims at 8:30am.
 
We got a deeper-than-expected drop in initial jobless claims last Thursday which helped the market move higher so this and Tuesday’s Consumer Confidence report will be the two biggies this week.
 
We also mentioned last week that January could get interesting as earnings season gets underway.  Wall Street is expecting a big improvement in fourth-quarter results compared to the last quarter of 2008.  
 
Analysts will be looking for increased revenues instead of cost-cutting to show an improving economy and if they don’t come though then the market could be headed south.  Revenues are expected to gain 7%, marking the first quarter of revenue growth since the third quarter of 2008.  We shall see…
 
Here is the thing folks, if corporate earnings for the fourth quarter come in better-than-expected then we could be adjusting our targets for the market much higher.  As you can see, the first few weeks is setting up to give us some great clues on market direction. 
 
If you can get market direction right then you stand a pretty good chance of making money with options and we have done well over the past few weeks playing the “Santa” rally.  Let’s hope it continues a few more days and weeks.
 
We will be back in the morning with the trade updates and a fresh outlook. 
 
 

Market Rallies On Early Close

Thursday, December 24th, 2009

2:00pm (EST)

Wall Street closed early today and the bulls left us with more presents.  The market finished at new highs for the year as Tech led the way once again.  The Dow moved higher by 53 points and settled at 10,520 while the Nasdaq bolted higher by 16 points and closed at 2,285.  The S&P 500 also closed at new highs for 2009 and is resting at 1,126 (up 6 points for the day) as we get ready for the holidays.

Volume was light as you would expect in a shortened session and has been over the past few weeks but we told you the market would probably have a good week. 

One stock that got some extra Christmas love was A123 Systems (AONE, $21.02, up $1.69).  The stock rallied nearly 10% on no real news and we were hoping that we would close above $20 today.  We got that and then some.

Meanwhile, First Solar (FSLR, $133.80, up $1.22) bounced back after a rough week and looks like it could easily move 10 points up or down next week.  We are still watching for a safe entry point but there are too many headwinds facing us with this one. 

Research In Motion (RIMM, $66.92, down $0.69) continues to look like it wants to cry “Uncle” and we think shares are poised for a steep drop.  It may or may not happen but we are watching for a break below $65 which could take shares back down to the $57-$58 level.  If we break below that, it gets nasty.

We wanted to update the current trades before we head out and they are ready in the Members Area.  We also wanted to wish each and every one of you a very, Merry Christmas. 

We will be back Sunday night with the Weekly Wrap.

MomentumOptionsTrading.com Morning Update for 12/24/09

Thursday, December 24th, 2009

8:15am (EST)

Folks, we will be back shortly after the market opens with a full update on the market.  Futures are leaning towards a slightly higher open this morning.  Current subscribers, check the Members Area for the trade updates this morning.

Market Flat, Bulls Fighting

Wednesday, December 23rd, 2009

12:25pm (EST)

The bulls are trying to take the market higher for the fourth day in a row and the Dow is flat as we go to press at 10,464. 

We have updated all of our trades and we are super busy today.  We would love to give a full market update today but the action is in the Members Area

Barrick Gold (ABX, $40.64, up $1.75) has made a move above $40 today which is great news for our subscribers who got into the trades yesterday. 

Current subscribers, check the Members Area for the updates…

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Trader Comments:

    REGINA L.
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year
    of membership rather than the one quarter. Thanks again, and LOVE YOU ALL.

    STEVE T.
    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help.

    SCOTT H.
    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide.

    PETER G.
    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485

    LAWRENCE O.
    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming.

    C.J.
    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your newsletter...it gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again!

    SHAUN
    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace!

    MICHAEL K.
    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good
    profitable calls. Keep up the good work.

    PARAG P.
    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!

    JAY P.
    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN.

    MIKE
    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You.

    TRISH D.
    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks.

    MIN L.
    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock!

    JOE G.
    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you!

    GREG F.
    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming.

    NOEL
    I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade.

    TODD F.
    Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today.

    PAUL H.
    What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you!

    NOEL
    “Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ”

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    “Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.”

    JOHN
    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.”

    CHARLES M.
    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.”

    BRYAN C.
    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.”

    JOHN H.
    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.”

    JEFFREY
    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.”

    ED
    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.”

    GREG
    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.”

    KEN
    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.”

    GARETT
    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.”

    TERENCE
    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.”

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