12:45pm (EST)
The bulls put up a good fight as they held the market’s slide at the open and were pushing their way towards even before succumbing to the pressure. The bears are trying to break key technical levels ahead of the weekend and have come close to doing so.
The unemployment numbers were horrible but the President will tell you we added private sector jobs every month for 7 straight. Give us a break. Businesses are still reluctant to hire and are running lean and mean. Many companies are still outsourcing work and are only hiring on an “as needed” bases.
We could go on and on but what is the point? Things move slow in Washington and no matter how you spin it, unemployment is going to bust 10% again.
Naturally, the markets are lower on today’s news but the bears still have work to do.
The Dow is down 140 points, or 1.3%, to 10,534 and has fallen below the 10,600 level. The S&P 500 is off by 15 points, or 1.4%, to 1,110 and 1,100 will be the battle ground going into the close. The Nasdaq is lower by 30 points, or 1.3%, to 2,263 and 2,250 should be where the party is at.
As far as specific stocks, Goldman Sachs (GS, $154.64, down $1.28) has been making some noise this week and hit a high of $157 on Wednesday which is strong resistance. We mentioned before financial regulation was passed that banks would figure out a way around Washington if it would cut into their profits.
It was almost a given “Golden Slacks” would be the first to make waves.
The company plans to spin-off part of its prop trading operations as early as today to grow earnings. The new laws limit banks from playing with their own money in the financial markets which controls risk but limits profits. Goldman saw the writing on the wall and it was a no-brainer they would eventually do this. Look for others to follow.
Tesla Motors (TSLA, $19.70, down $0.75) is back below $20 after announcing earnings this week. The recent IPO reported a loss of $39 million, or $5.04 per share, versus a loss of $11 million, or $1.56 per share, a year ago. Revenue came in at $28 million.
Tesla makes the Roadster, a car that costs over $100,000. The company isn’t expected to turn a profit for a few years, if then, and the next car (a sedan) it plans to build will run you $60,000. Big price tags to go green that the consumer won’t be able to afford.
The continued losses will eventually catch up the stock. Shares are volatile and have traded to a low of $14.98 since going public. The 6-week high is $30.42 and the option pits are usually pretty active. We think there could be a trade here.
We have a lot to cover in our Members Area and we are going to add a NEW TRADE today. We have closed out two winners this week and some of our other trades are showing signs of life. We are still in a choppy market but August is shaping up to favor the bears and they could be on the verge of waking up.
We will be back over the weekend with our Weekly Wrap which will be out Sunday afternoon.
Tags: call options, Goldman Sachs, GS, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, Tesla Motors, volatile options
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on Friday, August 6th, 2010 at 12:47 PM and is filed under Financial Stocks, Market Analysis, Market Commentary, Option Trades.
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Bears Grab Momentum!
12:45pm (EST)
The bulls put up a good fight as they held the market’s slide at the open and were pushing their way towards even before succumbing to the pressure. The bears are trying to break key technical levels ahead of the weekend and have come close to doing so.
The unemployment numbers were horrible but the President will tell you we added private sector jobs every month for 7 straight. Give us a break. Businesses are still reluctant to hire and are running lean and mean. Many companies are still outsourcing work and are only hiring on an “as needed” bases.
We could go on and on but what is the point? Things move slow in Washington and no matter how you spin it, unemployment is going to bust 10% again.
Naturally, the markets are lower on today’s news but the bears still have work to do.
The Dow is down 140 points, or 1.3%, to 10,534 and has fallen below the 10,600 level. The S&P 500 is off by 15 points, or 1.4%, to 1,110 and 1,100 will be the battle ground going into the close. The Nasdaq is lower by 30 points, or 1.3%, to 2,263 and 2,250 should be where the party is at.
As far as specific stocks, Goldman Sachs (GS, $154.64, down $1.28) has been making some noise this week and hit a high of $157 on Wednesday which is strong resistance. We mentioned before financial regulation was passed that banks would figure out a way around Washington if it would cut into their profits.
It was almost a given “Golden Slacks” would be the first to make waves.
The company plans to spin-off part of its prop trading operations as early as today to grow earnings. The new laws limit banks from playing with their own money in the financial markets which controls risk but limits profits. Goldman saw the writing on the wall and it was a no-brainer they would eventually do this. Look for others to follow.
Tesla Motors (TSLA, $19.70, down $0.75) is back below $20 after announcing earnings this week. The recent IPO reported a loss of $39 million, or $5.04 per share, versus a loss of $11 million, or $1.56 per share, a year ago. Revenue came in at $28 million.
Tesla makes the Roadster, a car that costs over $100,000. The company isn’t expected to turn a profit for a few years, if then, and the next car (a sedan) it plans to build will run you $60,000. Big price tags to go green that the consumer won’t be able to afford.
The continued losses will eventually catch up the stock. Shares are volatile and have traded to a low of $14.98 since going public. The 6-week high is $30.42 and the option pits are usually pretty active. We think there could be a trade here.
We have a lot to cover in our Members Area and we are going to add a NEW TRADE today. We have closed out two winners this week and some of our other trades are showing signs of life. We are still in a choppy market but August is shaping up to favor the bears and they could be on the verge of waking up.
We will be back over the weekend with our Weekly Wrap which will be out Sunday afternoon.
Tags: call options, Goldman Sachs, GS, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, Tesla Motors, volatile options
This entry was posted on Friday, August 6th, 2010 at 12:47 PM and is filed under Financial Stocks, Market Analysis, Market Commentary, Option Trades. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.