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Wednesday, December 23rd, 2009
9:00am (EST)
Research in Motion (RIMM, $66.78, down $0.44)) said their BlackBerry network is suffering major delays as users are having trouble getting emails this morning. The outage started last night and BlackBerry users in many parts of Asia including China and India, also were reporting downtimes.
Talk about a PR nightmare…it’s the second time in less than a week that BlackBerry users in North America have had issues with e-mail outages. RIMM held up well after reporting earnings but we still think the stock is headed to double nickels ($55/ share).
Red Hat (RHT, $29.87) is expected to open near $32 after reporting earnings after the market close yesterday. The company reported a profit of $34 million or $0.17 cents a share, versus $37 million or $0.18 a share for the year-ago period. Wall Street was expecting 16 cents a share.
As far as economic news, the Commerce Department said consumer spending jumped 0.5% in November, while incomes gained 0.4%. The bulls’ are loving the latest batch of news as they look to take the market higher for the fourth day in a row.
As we head to press, Dow futures are up 12 to 10,420.
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades Posted in Company Commentary, Earnings, Economic News | Comments Off
Tuesday, December 22nd, 2009
1:15pm (EST)
Current subscribers, we have decided to add two new trades today and they are profiled in the Members Area right now.
Posted in Hot Stocks | Comments Off
Tuesday, December 22nd, 2009
12:50pm (EST)
The Dow is trying to put together a three day winning streak (including last Friday) as we start the second half of trading. The index currently is trading at 10,456, up 42, and has hit a high of 10,470 today.
We got some good news from the housing sector as November’s sales rose 7.4%. Sales had been expected to rise to 6.25 million and we got 6.54 million.
In other economic news, the Commerce Department said the economy grew at a 2.2% pace in the third quarter, as the recovery got off to a weaker start than previously thought. The figures were released before the market opened and were a drag on the futures as Wall Street was expecting a 2.8% growth rate.
As far as specific stocks, Amazon.com (AMZN, $134.15, up $1.36) made a run to $136 which may not seem like much but it was enough it get our subscribers a 50% return. We have another trade in which we feel we have a Tiger-by-the-tail in our General Mills (GIS, $70.60, up $1.00) trade. The stock is at a new 52-week high and we feel a run to $73 is possible. Current subscribers, check the Members Area for the updates.
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades Posted in Company Commentary, Economic News, Hot Stocks, Market Analysis, Money Management, Option Trades, Strategies, Trading Psychology | Comments Off
Tuesday, December 22nd, 2009
9:00am (EST)
It was a good day for the bulls as a bunch of deal making and analyst upgrades helped propel the market higher. Leading the Dow was Alcoa (AA, $15.73, up $1.15) as it surged 8% on a Morgan Stanley (MS, $29.66, up $0.45) upgrade and announced an $11 billion joint venture in Saudi Arabia. Alcoa accounted for 9 of the Dow’s 85 point gain as the index finished at 10,414. BTW, 20 days left for…Alcoa’s earnings.
Intel (INTC, $20.09, up $0.46) led the way higher for the Nasdaq which gained 26 ticks and settled at 2,235. The high was 2,242 and we just mentioned Sunday night our near-term target is 2,275. Are we there yet? No, but we are getting close…
As far as the S&P 500, it chipped in with an 11 point gained and closed at 1,114. We are hoping to get a push to 1,175 for the index and historically, the last two weeks of December are bullish. Heck, the last 10 trading days of December 2008 were even bullish. Although it’s hard to trust history repeating itself year after year, this is one cycle in the market traders like to bank on.
Of course, we do feel the market has a chance to end the year with a bang and we pegged those aforementioned targets for the Dow (10,800), S&P 500 (1,175) and Nasdaq (2,275) back in August. We have been pretty accurate with market action all year long and we are starting to get a pulse for 2010. Folks, things could get really interesting in January.
Another sector that performed well yesterday was Healthcare. We mentioned yesterday the Senate voted to advance health-care legislation and that could be a stocking-stuffer by Thursday.
Stocks that got a bump include Aetna (AET, $34.04, up $1.53), Cigna (CI, $37.19, up $1.39), Coventry Health Care (CVH, $25.08, up $0.52) and Wellpoint (WLP, $60.01, up $1.70). We aren’t ready to stick our toes in the water as far as an option trade but we are getting close.
One gold stock we are almost ready to pounce on like a Tiger again is Barrick Gold (ABX, $38.96, down $0.56) which tried to get back over $40 yesterday. We mentioned how gold was getting ahead of itself when we heard “$5,000/ oz.” and it looks like we got our pullback.
We profiled some Barrick Gold call options back in November for a quick 40% profit when the stock was at $35 and we were gone at $40. Shares went on to make a high of $48 and we could be setting up nicely for another trade.
Dow futures are up 30 as we head to press. We have a lot to cover in the Members Area this morning so let’s get to it. Current subscribers, check for the updates.
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades Posted in Earnings, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Monday, December 21st, 2009
12:45pm (EST)
The market is off to a good start as the bulls have carried the Dow to a triple-digit gain today on a number of deals and takeovers. The Dow is currently enjoying a 120 point pop and is trading at 10,449. The S&P 500 is up 15 to 1,117 while the Nasdaq is up a whopping 30 points to 2,242.
Tech is getting a lift after Intel (INTC, $20.27, up $0.64) was upgraded to “Overweight” from “Equal-Weight” from Barclays Capital. We knew when Intel got back below $20 the upgrades would come but we see sideways movement in shares over the near-term.
Amazon.com (AMZN, $132.51, up $4.03) has been strong all day and could be making another run. Current subscribers, please check the Members Area for a NEW TRADE and the current updates.
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades Posted in Company Commentary, Option Trades | Comments Off
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RIMM Has Issues
Wednesday, December 23rd, 2009
9:00am (EST)
Research in Motion (RIMM, $66.78, down $0.44)) said their BlackBerry network is suffering major delays as users are having trouble getting emails this morning. The outage started last night and BlackBerry users in many parts of Asia including China and India, also were reporting downtimes.
Talk about a PR nightmare…it’s the second time in less than a week that BlackBerry users in North America have had issues with e-mail outages. RIMM held up well after reporting earnings but we still think the stock is headed to double nickels ($55/ share).
Red Hat (RHT, $29.87) is expected to open near $32 after reporting earnings after the market close yesterday. The company reported a profit of $34 million or $0.17 cents a share, versus $37 million or $0.18 a share for the year-ago period. Wall Street was expecting 16 cents a share.
As far as economic news, the Commerce Department said consumer spending jumped 0.5% in November, while incomes gained 0.4%. The bulls’ are loving the latest batch of news as they look to take the market higher for the fourth day in a row.
As we head to press, Dow futures are up 12 to 10,420.
Tags: call option trading, chicken option trades, Covered Calls, momentum stock option trading, option trade picks, option trading online, options blog, options mentoring, options newsletters, options track record, put option trading, Rick Rouse, stock option trade pick service, straddle option trades, strangle option trades, support and resistance levels, triple-digit option trades
Posted in Company Commentary, Earnings, Economic News | Comments Off