12:50pm (EST)
The bulls have kept the market in positive territory for the majority of the session although the bears sniffed red shortly after the open. The Dow and S&P 500 briefly slipped into negative ground but quickly bounded off their lows and are challenging key resistance levels once again.
The Dow is currently up 35 points to 10,688 and has traded as high as 10,696. The S&P is up 4 points and is trading at 1,125 while the Nasdaq is higher by 10 points to 2,298.
The Dow could challenge 10,800 if it can get above 10,700. If the S&P can clear 1,125-1,130 then there is an air pocket up to 1,150 which is the upper end of our current target for the index. The Nasdaq is trying to clear 2,300 and make a run at 2,350 but continues to struggle with this level.
We still believe any sustained rally will depend on how the financial stocks trade and the trend is still lower for the sector. Bank of America (BAC, $13.84, down $0.12) is near its 52-week low of $13.30; Morgan Stanley (MS, $27.42, down $0.23) and JPMorgan Chase (JPM, $40.04, down $0.40) both continue to trade lower…
McDonald’s (MCD, $73.03, up $1.29) is up nearly 2% after reporting great same-store sales numbers and posting its biggest monthly increase in U.S. sales in more than a year.

The company said sales jumped 5.7% in the U.S. and Europe sales were strong as they rose 5.3%. Overall, global sales climbed 7%. Mickey D’s is benefitting from its new fruit smoothies and frappes which seem to be going over well with customers during these hot summer months.
The Fed will talk on Tuesday so look for the indexes to continue to test resistance or trend lower for the rest of the session. Subscribers, check the Members Area for the latest updates.
Tags: bac, call options, GS, how to trade options, JPM, MCD, momentum options trading, Momentum stocks, MS, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
This entry was posted
on Monday, August 9th, 2010 at 12:53 PM and is filed under Company Commentary, Financial Stocks, Market Analysis, Market Commentary.
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McDonald’s Is Lovin’ It
12:50pm (EST)
The bulls have kept the market in positive territory for the majority of the session although the bears sniffed red shortly after the open. The Dow and S&P 500 briefly slipped into negative ground but quickly bounded off their lows and are challenging key resistance levels once again.
The Dow is currently up 35 points to 10,688 and has traded as high as 10,696. The S&P is up 4 points and is trading at 1,125 while the Nasdaq is higher by 10 points to 2,298.
The Dow could challenge 10,800 if it can get above 10,700. If the S&P can clear 1,125-1,130 then there is an air pocket up to 1,150 which is the upper end of our current target for the index. The Nasdaq is trying to clear 2,300 and make a run at 2,350 but continues to struggle with this level.
We still believe any sustained rally will depend on how the financial stocks trade and the trend is still lower for the sector. Bank of America (BAC, $13.84, down $0.12) is near its 52-week low of $13.30; Morgan Stanley (MS, $27.42, down $0.23) and JPMorgan Chase (JPM, $40.04, down $0.40) both continue to trade lower…
McDonald’s (MCD, $73.03, up $1.29) is up nearly 2% after reporting great same-store sales numbers and posting its biggest monthly increase in U.S. sales in more than a year.
The company said sales jumped 5.7% in the U.S. and Europe sales were strong as they rose 5.3%. Overall, global sales climbed 7%. Mickey D’s is benefitting from its new fruit smoothies and frappes which seem to be going over well with customers during these hot summer months.
The Fed will talk on Tuesday so look for the indexes to continue to test resistance or trend lower for the rest of the session. Subscribers, check the Members Area for the latest updates.
Tags: bac, call options, GS, how to trade options, JPM, MCD, momentum options trading, Momentum stocks, MS, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
This entry was posted on Monday, August 9th, 2010 at 12:53 PM and is filed under Company Commentary, Financial Stocks, Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.