MomentumOptionsTrading.com Midday Update for 5/19/14
Bulls Pushing Resistance but Dow Lagging
Monday’s have been bullish of late and last Friday’s action was a good tell Wall Street didn’t want to get caught off-guard again following last Monday’s short-covering rally.
Despite a lower open, the Monday trend is continuing today as the bulls are making a slight push higher.
Besides the Fed minute, economic news is somewhat light this week but there may be some trading opportunities for an earnings trade or two.
Urban Outfitters (URBN) will release their numbers after today’s close.
Dick’s Sporting Goods (DKS) has been a favorite option play of mine in the past and they will report earnings ahead of Tuesday’s open. hhgregg (HGG) and Home Depot (HD), Red Robin Gourmet Burgers (RRGB), Staples (SPLS) and TJX Companies (TJX) will also join then in announcing their results. Analog Devices (ADI), Intuit (INTU) and Salesforce.com (CRM) fess up after the close.
On Wednesday, Hormel Foods (HRL), Lowe’s (LOW), MakeMyTrip (MMYT), PetSmart (PETM), Target (TGT) and Tiffany (TIF) report ahead of the open. 8×8 (EGHT), DryShips (DRYS), NetApp (NTAP), Sina (SINA) and Williams-Sonoma (WSM) after the bell.
Thursday playbook includes possible trades on Best Buy (BBY), Dollar Tree Stores (DLTR), ITT Educational Services (ESI), Kirklands (KIRK), Movado Group (MOV), Perry Ellis International (PERY), Rediff.com (REDF), Sears Holdings (SHLD) and Toro (TTC) ahead of the open.
Aeropostale (ARO), Aruba Networks (ARUN), Brocade Communications Systems (BRCD), GameStop (GME), Gap (GPS), Hewlett-Packard (HPQ), Nordson (NDSN), Ross Stores (ROST) and TiVo (TIVO) report after the close on Thursday.
Foot Locker (FL) and Hibbett Sports (HIBB) highlight Friday’s earnings.
These stocks have the potential to make huge moves this week and I will be looking for the best candidates for possible option trades.
The portfolio is light and is in GREAT position to play the market’s next major trend. Although 2013 has been frustrating for a lot of the slick talking pros, I have cautioned about shorting a dull market all year long. However, there has been some success in going short this month but profits need to be taken when they can as long as the bulls continue to hold the uptrend channels I have charted out.
I say this every week because we have new subscribers coming on board daily but it is worth repeating. If you haven’t logged into the Members Area to check the chart work, please do so as it will give you an excellent snapshot of the market in about 10 minutes.
Charts for the major indexes, VIX, current trades and other stocks and sectors are included every Monday and knowing what they are saying is really important.
Today’s close could offer important clues on how the rest of the week might play out so stay focused. I have listed specific upside and downside targets to watch this week so I’m letting the action come to me.
Heading into the second half of trading, the Dow is down 8 points to 16,483 while the S&P 500 is higher by 4 points to 1,882. The Nasdaq is advancing 29 points to 4,119 and the Russell 2000 is advancing 11 points to 1,113. The VIX is at 12.32, down 0.12.
Subscribers, check the Members Area for the current trade updates and stay locked-and-loaded into the close for a possible earnings trade.