1:00pm (EST)
The market has traded in a tight range although the bulls are still the fat kid on the see-saw. The major indexes are showing slight gains as traders seem tentative to build positions ahead of 2Q earnings.
The Dow is up 5 points to 10,144 while the S&P 500 is higher by 2 points and is at 1,071. The Nasdaq is showing a 5 point pop and is at 2,180.
The talking heads like to say Alcoa (AA, $10.80, up $0.08) kicks-off earnings season and on Monday they will, but, we are here to say Intel (INTC, $20.03, down $0.07) will officially handle those duties on Tuesday.

Shares of Intel are down 18% from its 52-week high of $24.37 and the low is $15.86 so shares are pretty much in the middle. Intel has a nice history of beating earnings, but a few analysts have been downgrading the stock ahead of earnings. The options market is pricing a 5% move in the stock when the company announces so we can expect a slight move up or down. However, if Intel happens to miss earnings then it could get nasty for shareholders.
This week was light on news and the rally has come on light volume. That worries us. It’s okay to say maybe we didn’t call an “exact” bottom, but we did call for the pullback that started in May.
Just like any battle, we like to wait for our next move which is why we are letting our current trades play out. We have been building a nice Watch List, and we will be back in action next week with some high reward/ medium risk trades. We are going to cover quite a few trades that have homerun potential including another look at two Biotech companies, Dendreon (DNDN, $31.86, up $1.56) and Vivus (VVUS, $11.90, up $0.21) which we are close to adding.
We have followed these stocks and alerted our subscribers when shares were under $5 for both of these companies. In fact, there is a major news announcement coming for Vivus, and Dendreon is making the rounds as a takeover candidate again. We are looking for huge price swings in both of these companies, but we want to do some more research over the weekend before pulling the trigger on a trade.
We are excited as we look forward to the next few weeks and months, and we think there will be a ton of great opportunities to go both long and short this market. It will just take more homework with the volatility being taken up a notch.
We will be back on Sunday night with the Weekly Wrap, but subscribers can check the Members Area for one last update before we go.
See you Sunday night, and have a great weekend everyone!
Tags: call options, Dendreon, dndn, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, Qnexa drug, stock options trading, Vivus, volatile options, VVUS
This entry was posted
on Friday, July 9th, 2010 at 12:01 PM and is filed under BioTech, Company Commentary, Earnings.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
Bulls Resting, Will Bears Show Up Next Week?
1:00pm (EST)
The market has traded in a tight range although the bulls are still the fat kid on the see-saw. The major indexes are showing slight gains as traders seem tentative to build positions ahead of 2Q earnings.
The Dow is up 5 points to 10,144 while the S&P 500 is higher by 2 points and is at 1,071. The Nasdaq is showing a 5 point pop and is at 2,180.
The talking heads like to say Alcoa (AA, $10.80, up $0.08) kicks-off earnings season and on Monday they will, but, we are here to say Intel (INTC, $20.03, down $0.07) will officially handle those duties on Tuesday.
Shares of Intel are down 18% from its 52-week high of $24.37 and the low is $15.86 so shares are pretty much in the middle. Intel has a nice history of beating earnings, but a few analysts have been downgrading the stock ahead of earnings. The options market is pricing a 5% move in the stock when the company announces so we can expect a slight move up or down. However, if Intel happens to miss earnings then it could get nasty for shareholders.
This week was light on news and the rally has come on light volume. That worries us. It’s okay to say maybe we didn’t call an “exact” bottom, but we did call for the pullback that started in May.
Just like any battle, we like to wait for our next move which is why we are letting our current trades play out. We have been building a nice Watch List, and we will be back in action next week with some high reward/ medium risk trades. We are going to cover quite a few trades that have homerun potential including another look at two Biotech companies, Dendreon (DNDN, $31.86, up $1.56) and Vivus (VVUS, $11.90, up $0.21) which we are close to adding.
We have followed these stocks and alerted our subscribers when shares were under $5 for both of these companies. In fact, there is a major news announcement coming for Vivus, and Dendreon is making the rounds as a takeover candidate again. We are looking for huge price swings in both of these companies, but we want to do some more research over the weekend before pulling the trigger on a trade.
We are excited as we look forward to the next few weeks and months, and we think there will be a ton of great opportunities to go both long and short this market. It will just take more homework with the volatility being taken up a notch.
We will be back on Sunday night with the Weekly Wrap, but subscribers can check the Members Area for one last update before we go.
See you Sunday night, and have a great weekend everyone!
Tags: call options, Dendreon, dndn, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, Qnexa drug, stock options trading, Vivus, volatile options, VVUS
This entry was posted on Friday, July 9th, 2010 at 12:01 PM and is filed under BioTech, Company Commentary, Earnings. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.