MomentumOptionsTrading.com Midday Update for 1/6/2014
Tough Sledding for the Bulls/ Profit Alert (ARIA)!!!
We talked about the importance of the bulls getting off to a good start today and that they did as the indexes pushed positive territory on the opening bell. However, the slight rally has once again faded as the bears are pushing our near-term downside targets.
We covered a lot of information this morning along with a ton of chart work because we want you to know exactly what we are watching and looking at. If you haven’t logged into the Members Area, please do so and really study the charts. We do all the homework for you to make it easier to follow and predict where the market is headed and by taking 15-20 minutes to study the charts, it will help you become a better trader.
We mentioned this week will be full of headlines that will have a big impact on trading this week. We came into the New Year with a very light portfolio because we predicted a rocky start for January. Although we are looking for one last possible push to all-time highs, it won’t hurt our feelings if there is a test to support or a 5%-10% pullback. For that matter, we would LOVE to see a 15%-20% correction because we always remind our subscribers you can make the same juicy triple-digit profits with put options playing a down market as you can playing calls in an uptrend.
There will be a lot of new investors coming into the market that only expect the market to go up. We aren’t sure of the exact percentage of investors or the general public that know how to short stocks or play the market when it is tanking but we would say the odds are pretty high, as much as 75%, that investors have no clue how to make money in a down market.
Do yourself another favor and take the time to look at our 2008 Track Record results. When the Dow was tanking 300, 500, and 777 points in a session, the talking heads were panicking and the Wall Street pros were telling you to stay out of the market. This advice was pretty stupid because we show you how you could have made option profits of 200%, 500%, and even 800% – in real-time!
When there was blood on the Street, most investors want no part of Wall Street and while we aren’t saying the volatility will be quite like 2008, we do expect 2014 to be a much more difficult environment for the bulls to continue their smooth sailing. In other words, we expect some choppy waters ahead.
We have just wrapped up our 6th-straight year of profitable trades and we are proud to say we have never had a losing year. We have documented Track Records for all of our trades and auto-trading partners that take the trades for our subscribers.
The reason we are covering all of this is because we want YOU to become a better trader and we want you to benefit from the upcoming volatility.
Our option trading course, How to Trade Momentum Options, will be shipping soon and we will have upcoming videos to educate and help you become a market master and better options trader.
We expect the action to heat up in the coming days and weeks and NOW is the best time to upgrade your membership to the 1-year deal as the option trading course is included at NO CHARGE (an $895 value!) and shipped to your doorstep on our dime.
Do you want to know how we predicted Dow 16,000 in February 2013 and a 3,000 point gain by yearend? Or how the VIX would test the low teens or how the Russell 2000 was going to crack 1,000? How about playing a drug stock for option gains of 500% or earnings trades for profits up to 300%? You will learn all of the tricks of the trade by signing up for our 1-year deal.
We wanted to cover our option trading course update one last time as we know many of our current subscribers are eager to get started and with a bevy of new subscribers coming on board, it was important.
As far as the market, the Dow is down 37 points to 16,432 while the S&P 500 is lower by a 5 points to 1,826. The Nasdaq is declining 23 points to 4,108 and the Russell 2000 is off 7 points to 1,149.
These are the EXACT levels we talked about as the next layers of support so today’s close will be ultra important.
We have a Profit Alert on the rest of our Ariad Pharmaceuticals (ARIA, $6.71, down $0.44) call option trade. Although shares are down 6% today, our call options made 56% in a little over a month. We could be getting back into this trade again so keep this one on you Watch List! Subscribers, check the Members Area for the updates and stay locked-and-loaded into the close as we could have an earnings trade. If we do take action, it will likely be between 3:30pm-3:45pm and we will send out a New Trade Alert. If you don’t hear from us, we sat on the sidelines and we will be back in the morning with a full report.