“We came into the week with the market showing a 4% gain for September and we said the indexes were 2%-3% away from our “fluff” targets. With one week left, we were looking for the bulls to get to within 1% of our fluff targets for the month and with October just around the corner the task just got a little harder but still doable.
There could be a flood of “window dressing” to begin the week but the suit-and-ties will need to be careful. We mentioned that many of the pros went on their late August vacations and were hoping for a pullback when they retuned but they never got it. The fund managers who are lagging the market are going to feel pressure to push while the ones showing a negative return will likely get fired.
We have been mentioning the start of 3Q earnings season and we can now begin the countdown. Alcoa (AA, $9.13, down $0.12) will announce earnings in 16 days, or October 10. The market will be closed on October 8 for Columbus Day.
We have already seen a number of high profile earnings warnings so next week will be the week even more companies could start confessing their sins. Next week is also the last week the suit-and-ties can add positions for the quarter, or sell. We have said many of the pros are way behind the market’s returns and they will have a hard time explaining to their clients they didn’t make them any money this year with Tech up 20%.
Of course, you are considered a Wall Street whiz if you can make your clients 8%-10% a year. Although we love our brothers and sisters who play the game with us, we like to shoot for 100% returns a year for our subscribers. We believe we have done that 7x over this year.
Our point is, we do have high expectations for ourselves but making 10% a year is phenomenal in today’s world so we need to remember this if we get into a flat market of there is a pullback.
The only other curveball we see coming could be a Spain bailout but this is already being anticipated and that may or not happen this week. Last week may have been dull and many of the pros are calling for a pullback. There is an old saying that says “never short a dull market” and the bears a few layers of support to crack before they get on track.
We do need to respect the possibility of a pullback because the warning signs are there but all signs are pointing towards a push to new 52-week highs.” (from 9/23/2012 Weekly Wrap/ Monday Morning Outlook)…
The bears started the week of with another win which marked 16-out-of-17 sessions in which the market has started the week lower. The selling pressure picked up on Tuesday on Spain’s impending bailout which caused protests over further austerity measures. It was Greece all over again and it could get worse. The pullback was enough to crack the first wave of support.
The bulls tried to rebound on Wednesday on better-than-expected Housing numbers but prior support quickly became resistance as the market ended lower. We expected some window-dressing to come in on Thursday and once word spread that Spain had announced a detailed timetable for economic reform, the bulls rallied. The indexes fell just short of reclaiming support going into Friday’s action which proved to be resistance.5
If you are not a subscriber but would like to read more and check our chart work for the indexes and our current trades, please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing tremendously well for 2012.
Since mid-August, we have closed 18-out-of-20 winning recommendations. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 132-45 (75% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options