MomentumOptionsTrading.com Midday Update for 6/6/2014
Bulls Get Off to Fast June Start
Futures were positive throughout the night and were a good indication this morning’s Nonfarm Payroll would please Wall Street. Expectations were for 215,000 jobs added but futures started climbing after a print of 217,000 hit the tape.
The estimate range was all over the map with a low of 100,000 jobs being added to a high of 240,000.
Either way, the signs for a breakout were already in place earlier in the week the indexes were on the verge of breaking out.
The Dow is advancing 72 points to 16,908 while the S&P 500 is gaining 8 points to 1,948. The Nasdaq up 19 points to 4,315 and the Russell 2000 is popping a 12-pack to 1,166.
The closed trades track record is now 14-3 (82% success rate) since late March and given the incredibly tight trading range in May, it’s worth a golf clap. However, there is still work to do as the bulls ride the near-term wave higher.
I have a few current trades that are coming down to the wire and while I want to open new ones, I usually refrain from opening new positions ahead of the weekend. The playlist is exploding with new ideas, both long and short, as I predicted in late May there could be a breakout rally through mid-June. However, the following week is June option expiration so volatility could pick up.
I have talked about the S&P 500 Volatility Index (VIX, 10.95, down 0.73) testing single-digits this year and with my December fluff targets finally starting to trigger, I am growing a little cautious.
This weekend’s homework will be fun as I break down the next batch of trades to play into July and August. I have some last minutes updates for the current trades with some showing some nice pops. There are 2 trades that have hit 100% returns but I mentioned I’m looking for 200%-500% returns with the two latest additions.
I will be back with the Weekly Wrap on Sunday night and on Monday morning with the Daily. Until then, have a great weekend everyone!