MomentumOptionsTrading.com Midday Update for 6/13/2014
Bears on Track for Weekly Win/ New Trade!!!
The bulls started the week on a good note and are trying to end it on one as the market is rebounding today. However, the bears are on track for weekly win as the damage they did in between Monday and Friday should be enough to get the job done. There is still another half of trading to go and the bulls are trying to recover prior resistance levels but this battle will likely continue into next week.
The fireworks are there for continued volatility and I mentioned the market could see some wild price movements in June. With the geopolitical concerns heightening, a 2-day Fed meeting and June option expiration next Friday there could be a continued breakout to higher highs or a further breakdown.
Wall Street hates being long over the weekend with the threat of war in the air or possible air strikes but a huge rebound could be in store if the situation in Iraq starts to simmer. Doubtful but let’s hope so.
The market usually cools off when the heat in Washington is turned up and the zombies are back in the picture again given everything happening this week.
Despite the volatility, the current trades have done phenomenally well. Some positions have locked-in half profits and are assured of being winners while others are up double-digits. There are a couple of put option trades that are so close to exploding higher and I’m hoping those trades can be cashed out next week.
I had planned to come to press a little earlier but I wanted to watch the action before issuing a New Trade today. It’s on a stock that is on the verge of making a huge run from $14 to $20 over the next 6 months and I have the perfect option play to get us through the upcoming volatility.
This is a play on a fundamental story I have been following for years and the company is in turnaround mode after years of litigation risk. These issues are now behind them and they are signing deals left and right. Shares are near 52-week peaks.
As far as the indexes, the Dow is up 20 points to 16,754 while the S&P 500 is adding 3 points to 1,933. The Nasdaq is gaining 7 points to 4,305 and the Russell 2000 is up a deuce to 1,161. The VIX is at 12.07, down 0.49.
Subscribers, hit the Members Area for the current updates and New Trade.
I have been doing a ton of homework over the past two weeks and have big issues of the Weekly Wrap and Daily coming out on Sunday night and Monday morning. Until then, have a great weekend everyone!