Mixed Action Ahead of Monday Close, Profit Alert
We started doing our weekend chart work early last week as we wanted to get a jump on how the month of May might play out. Friday’s action left us chained to our desk until well after the close because it was a frustrating day and we wanted to start our chart work early so that we could enjoy the weekend.
The good news is we love our job and the charts for the major indexes (and the VIX) are still bullish. However, we talked about the Financial stocks needing to show strength and that’s not happening.
We also said the Dow needed to get a Monday win and so far, that hasn’t looked to promising either. However, following a bear attack at the open, the bulls are showing signs of life.
If you haven’t looked at our charts, we highly suggest you login to our Members Area as they are easy to read. The channels are lining up beautifully and you will see everything coming together more clearly. We have given precise downside targets on when we might jump the bullish ship and roll with the bears but we have also defined clear upside targets the bulls are aiming for.
Our portfolios for both the Daily and Weekly Wrap are rather light as we have been taking profits when we can while riding out the current yearlong trading range.
We included our Portfolio updates for both newsletters in last night’s Weekly Wrap and in this morning’s Daily.
The Weekly Wrap is now a stunning 13-3 for 2014 (98-10, or 91% win rate, since 2011) and is designed for traders that want to use options with less risk.
The Daily newsletter is up 123% for 2014 based on a $10,000 trading account. Overall, our Track record is 41-23 and we doubt many option services (if any) can match our results. In 2013, we showed our subscribers a 161% return on 171 Daily option trades and we have averaged nearly a 70% win rate for the past 6 years.
We haven’t traded as much in recent weeks as we would like to but we have closed 7-straight winners with our latest batch of trades, including 183% on APOL.
Our point is, the big winners are still going to come but until there is a clear breakout or breakdown, we will have to continue to play small ball. However, money is money so we certainly aren’t complaining.
As we make the turn, the Dow is off 9 points to 16,503 while the S&P 500 is lower by 1 point to 1,880. The Nasdaq is slipping 2 points to 4,121 and the Russell 2000 is declining 5 points to 1,123. The VIX is at 13.22, up 0.31.
We have another Profit Alert on a trade that made us a nice double-digit return (17%) in a week. Subscribers, hit the Members Area for the updates and to check the chart work. Also, we could have a New Trade today and it is one we profiled this morning and in the Weekly Wrap as a possible way to play a breakdown in a well-known financial stock. If we take action, we will send out a New Trade Alert.