The indexes are making another push higher and although the gains have been limited, the bulls are pushing higher highs. With the Dow, Nasdaq and Russell 2000 at all-time and 12-year peaks, the last of the 4 horsemen, the S&P 500, is still playing catch up.
We were given a lot of clues over the past weeks that the bulls were going to push new highs following the prior week’s fake out on Monday. In February, we gave our yearend targets for all of the indexes and while we are not ready to show our poker hand to the public, we have said 2013 is going to be an incredible year to trade the market and our subscribers know how bearish or bullish we are.
There are still some important economic nuggets of news coming for the rest of the week that will sway market direction, including today’s Fed Beige Book at 2pm. The talk here is that any weakness in the numbers would only enforce continued QE (quantitative easing) flows as there are worries on when it will end. We mentioned last week with Big Ben at the helm, he has all intentions on continuing pumping money into the system until he retires next year.
Today’s ADP Employment report was positive but the Grand Daddy news is due out Friday as the Nonfarm Payrolls will hit Wall Street before the open. The over/ under on job growth is 160,000. In a perfect world, an exact number would be very bullish for the indexes as a higher or lower number would spark QE debate as well.
As far as stocks, Petrobras (PBR, $16.20, up $1.72) is getting a nice pop and is up 12% on higher diesel prices. We just covered this stock in our Weekly Wrap and said shares may have reached a bottom as they were languishing new their 52-week lows. While we didn’t make it an official recommendation, yet, we do like today’s move but we want to do a little more chart work and look into today’s news before adding it to the portfolio.
We mentioned this morning our Weekly Wrap is now 51-3 over the past 2 years and since inception. Although we use options, we trade in a safe, conservative way as we look to make double-digit gains every month for this publication. Directional trading is a lot more riskier than covered call trading because you have to right in a certain time frame while buying stocks and writing calls against the position lowers your cost basis and buys you more time.
We always suggest building a solid portfolio with quality stocks that make you double-digit gains and then use some of that cash for speculative plays to hit the triple-digit winners. For our current members who are subscribed to the Weekly Wrap, we offered you the special deal in December that included a 1-year membership at no charge to the newsletter if you subscribed to the Daily.
While we only run that promotion once a year, we have gotten a lot of requests on information about the Weekly Wrap. The main focus is that we like to recommend stocks that are under $20 and we use call options to lower our cost basis on a monthly basis. We also profile stocks that do not trade options and these are undiscovered gems that have the chance to double. Last year, we recommended Arena Pharmaceuticals (ARNA, $8.45, down $0.09) at $1.88. Shares hit a high of $13.50.
A few years ago we profiled Imax (IMAX, $25.74, down $0.08) at $3 a share just before the 3D boom and shares went on to clear $30. We also profiled Dendreon (DNDN, $5.75, up $0.05) massive move from $4 to $40 and said to get out after this level failed. Shares could be a buy at current levels but we already rode that horse.
Our point is, as an investor, you owe it to yourself to learn all the tools of investing, including shorting, to take full advantage of the Wall Street wheel.
We have been long-winded but we wanted to make a point as we want to offer you the Weekly Wrap for the discounted price we ran in December. The price will be $375 for a 1-year deal and the normal pricing is north of $900. We included our trading course, How to Trade Options on Momentum Stocks, and access to our video library. This was also an $895 value.
We can also include the trading manual with the Weekly Wrap deal (but it does not include the Daily newsletter) with today’s promotion but we only have 18 copies left. When we did the original run in January, we printed some extras to keep our costs as low as possible and these are all we have left.
This means the first 18 people who accept today’s offer will get the trading course at no charge. After that, you can still get the Weekly Wrap 1-year deal for $375 but it will not include the options trading course. In other words, first come, first served.
We are doing this because we want you to learn how the market works and what tools you can use to stay ahead of the average investor. Each week we do chart work on the major indexes, cover some metals, and the VIX, and highlight historic trends. This information is invaluable as we always try to keep you one step ahead of the market.
Here is the coupon code to get the special deal to our Weekly Wrap and it will end in 48 hours:
Associate with: Weekly Wrap – One Year Subscription Only $924 for 1 year. Save $120. Weekly newsletter – Stock market review and analysis for upcoming week.
After we receive your order, we will ship the course out to you at no cost as well. Again, the first 18 people will get the trading course at no charge.
As far as the market, the Dow is up 41 points to 14,294 while the S&P 500 is higher by a point to 1,540. The Nasdaq is down 3 points to 3,221.
Subscribers, check the Members Area for the updates and we could have a NEW TRADE for the Weekly Wrap this afternoon. We will at least have a trade update as there is a call option or two we want to sell into strength on a couple of our positions to lower our cost basis.