1:10pm (EST)
The bulls are back in familiar territory as the market awaits President Obama’s speech on a $250 billion jobs recovery plan. The Beige Book is also due out in about an hour while Consumer Credit will come out a little after that.
The President will be talking about a $50 billion infrastructure investment to rebuild and repair the nation’s roads, railways and runways. He will also ask for a permanent extension of research and development tax credits for businesses that will include the ability to write off 100% of their spending on new plants and equipment through 2011.
These events should be move the market and right now the bulls are pushing resistance once again. Volume is light which leads us to believe the market could go either way. If the bulls are going to break through heavy resistance they are going to need more fire power. Plus, the President hasn’t been too confident in his body language lately and any nervousness on his part, the bears will catch.
As far as specific stocks, Netflix (NFLX, $147.74, up $5.95) is at all-time highs and continues to expand its business in so many ways. We loved this stock back in November 2009 when shares were under $60 and although we don’t trade stocks, it has easily been a safety net for anyone who bought some and put it away.
We are hopeful the company will do a 3-for-2 or 2-for-1 stock split so we can start playing options on it again but there might be an opportunity for us to do a straddle or strangle option trade with the October options although the premiums are going to be pretty high.
As we head to press, the Dow is up 77 points to 10,417 while the S&P 500 is higher by 10 points to 1,101. The Nasdaq is showing a 26 point pop and is at 2,234.
We have a lot to cover in our Members Area and we will probably profile a Netflix trade on our Watch List as early as tomorrow. We will do a little more research and give you an update in the morning. Another old friend of ours, Dendreon (DNDN, $42.43, up $2.20) is up over 5% today on no specific news.
Tags: Dendreon, dndn, Netflix, NFLX, option picks, stock options trading
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on Wednesday, September 8th, 2010 at 1:11 PM and is filed under Company Commentary, Market Analysis, Market Commentary.
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Tight Trading Range Continues, Netflix (NFLX) At All-Time Highs
1:10pm (EST)
The bulls are back in familiar territory as the market awaits President Obama’s speech on a $250 billion jobs recovery plan. The Beige Book is also due out in about an hour while Consumer Credit will come out a little after that.
The President will be talking about a $50 billion infrastructure investment to rebuild and repair the nation’s roads, railways and runways. He will also ask for a permanent extension of research and development tax credits for businesses that will include the ability to write off 100% of their spending on new plants and equipment through 2011.
These events should be move the market and right now the bulls are pushing resistance once again. Volume is light which leads us to believe the market could go either way. If the bulls are going to break through heavy resistance they are going to need more fire power. Plus, the President hasn’t been too confident in his body language lately and any nervousness on his part, the bears will catch.
As far as specific stocks, Netflix (NFLX, $147.74, up $5.95) is at all-time highs and continues to expand its business in so many ways. We loved this stock back in November 2009 when shares were under $60 and although we don’t trade stocks, it has easily been a safety net for anyone who bought some and put it away.
We are hopeful the company will do a 3-for-2 or 2-for-1 stock split so we can start playing options on it again but there might be an opportunity for us to do a straddle or strangle option trade with the October options although the premiums are going to be pretty high.
As we head to press, the Dow is up 77 points to 10,417 while the S&P 500 is higher by 10 points to 1,101. The Nasdaq is showing a 26 point pop and is at 2,234.
We have a lot to cover in our Members Area and we will probably profile a Netflix trade on our Watch List as early as tomorrow. We will do a little more research and give you an update in the morning. Another old friend of ours, Dendreon (DNDN, $42.43, up $2.20) is up over 5% today on no specific news.
Tags: Dendreon, dndn, Netflix, NFLX, option picks, stock options trading
This entry was posted on Wednesday, September 8th, 2010 at 1:11 PM and is filed under Company Commentary, 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.