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Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
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If you are not a subscriber but would like to read more about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. Since early August we have made 48 recommendation, both calls and puts, and have hit on 40 out of 48 trades for a winning percentage of over 80%! Some of our recent winners include:
+169% on Joy Global (JOYG) call options in 2 days
+137% in Research In Motion (RIMM) put options in 3 weeks
+130% in Spreadtrum Communications (SPRD) call options in 4 weeks
+164% in FedEx (FDX) put options in 6 days
+184% in Goldman Sachs (GS) put options in 5 days
+191% in O’Reilly Automotive (ORLY) call options in 17 days
+100% in VMWare (VMW) call options in 4 days
We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors
Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off
Monday, August 22nd, 2011
12:55pm (EST)
The market is getting a lift today as the bulls push resistance following a 4-week losing streak but the major indexes are off their highs. There hasn’t been any major headline news, negative that is, and economic gibberish doesn’t hit the tape until Tuesday which has given the bulls some breathing room. The bears have made their presence known by capping today’s gains and drawing blood but we still have another half of trading so anything can happen.
Before we go over the market’s numbers, we want to spend a few paragraphs talking about Seattle Genetics (SGEN, $14.50, down $0.54) which has been on a wild ride of late. After 14 years and $500 million in reserach, the company won its first approval from the Food and Drug Administration (FDA) on Friday for its innovative cancer drug, Adcetris, which treats two rare forms of cancer that attack the lymph nodes.
The drug will be used to treat Hodgkin’s lymphoma and systemic anaplastic large cell lymphoma. Patients who have already tried treating their disease with a bone marrow transplant or multiple rounds of chemotherapy will now have a new treatment option.
Adcetris was also a drug the FDA checked-off on for their “accelerated approval program”. One of the benefits, and one the FDA found especially appealing, was the fact it targets antibody to deliver the drug directly to cancerous tumor cells which saves the healthy cells.
Seattle Genetics will market Adcetris in the U.S. and Canada, while Takeda Group takes it global.
The stock made a nice pop on Friday and traded to a high of $15.93 before settling at $15.04. Shares were up strong in pre-market action, trading near $16 but have given back their gains after conflicting research reports.
Shares of Seattle Genetics have been under pressure even before Friday’s news as there was chatter the drug would be delayed in gaining approval. The stock hit a 52-week high of $21.41 in late June and we used the strength to close half positions in a trade we recommended back in early May when the stock was at $17. The options made 50% and we are still managing the other half.
We have been following the company for a few years and we told our subscribers we should hear good news before the end of August. We were looking for the stock to make a run up to $25 but we could get caught in the crossfire between a bull and a bear.
One brokerage firm believes Wall Street is under-estimating sales and says shares are at attractive entry prices, slapping an “Outperform” rating on the stock. Meanwhile, another brokerage firm reiterated its “sell” rating on the stock with a price target of $10.
We have done a ton of research on Seattle Genetics and we love their drug pipeline, not to mention their business model. Obviously, somebody’s research is flawed and we think the stock has been weak due to the overall market conditions along with the healthcare debate. Either way, we plan on digging into the company’s books a little deeper to see if we can find some clues.
As far as the market, the rally that was strong at the open has faded right at the resistance levels we went over this morning. The overseas markets are closed so the battle between the bulls and bears could get interesting in the final hour.
As we head to press, the Dow is up 47 points to 10,864 and has trade to a high of 11,020. The S&P is higher by 2 points and is at 1,125 following a run up to 1,145. The Nasdaq is advancing 5 points to 2,347 after kissing 2,397 at the open.
We will be back in the morning with a full update but the test at resistance and then the pullback doesn’t look good for the bulls.
Tags: About options trading, dndn, NASDAQ: SGEN, option trading, Seattle Genetics drug approval, SGEN, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in BioTech, Market Analysis, Market Commentary | Comments Off
Thursday, July 14th, 2011
1:15pm (EST)
We wanted to give a quick update on Seattle Genetics (SGEN, $20.33, HALTED) as we have just learned the FDA committee has voted 10-0 in favor of one of its two drugs with another meeting scheduled this afternoon to review the other.
So far, so good…
Tags: NASDAQ: SGEN, SGEN, SGEn stock halt
Posted in BioTech | Comments Off
Thursday, July 14th, 2011
12:25pm (EST)
The bulls are trying to even things up for the week but are having trouble holding the gains off the open and still have a ways to go to get back to even. JPMorgan (JPM, $40.77, up $1.15) provided some enthusiasm this morning after beating Wall Street’s expectations by reporting some nice numbers.
Economic news came in on cue and there weren’t any major surprises, good or bad. Initial Claims came in better-than-expected at 405,000 versus expectations for 410,000 while Continuing Claims came in worse-than-expected at 3.73 million versus a forecast for 3.71 million.
The Producer Price Index (PPI) for June fell 0.4% while Core PPI improved 0.3%. Expectations were for a decline of 0.2% for both. Meanwhile, Retail Sales increased 0.1% compared with calls for a drop of 0.2%. Business Inventories were up 1% which beat expectations for a gain of 0.9%.
Friday will be an extremely busy again with economic news and July option expiration day so expect some volatility. History has shown that this month is more volatile than most as far as option expiration week, but then again, we have also seen some flat action in quite a few options expiration days so far for 2011, so who knows.
The Dow is up 10 points to 12,502 after racing to a high of 12,581 at the open. A close above 12,5-12,6 would be sweet. The S&P is down 1 point to 1,316 after kissing 1,326 while the Nasdaq is struggling, down 12 points to 2,785.
We have a lot of hot stocks we are following and we are expecting some exciting news over the next 24 hours.
The big news after the bell today well be Google’s (GOOG, $531.26, down $7) earnings, of course. However, we are anxiously awaiting news concerning Seattle Genetics (SGEN, $20.33, HALTED) which has been HALTED as the company meets with a Food and Drug Administration (FDA) committee to discuss two of the company’s drugs that they hope to gain approval for.
One is for a drug called Adcetris, which is a treatment for Hodgkin’s disease, while the other drug is targeting anaplastic large cell lymphoma.
We have been following Seattle Genetics for nearly a year now and our subscribers have had some success trading the stock and options. Shares were in the mid-teens when we brought their story to our readers so today is a big day for us as well.
We will probably hear some news regarding the panel’s recommendation and we are hopeful the news will be good and shares make a run to $25+. However, we also know these types of “meetings” can be both good and bad so our expectations are tempered. Although there could be a letdown or some negative news, a final decision on the drug(s) isn’t expected until the end of August.
One thing is for certain – expect some action once news is released on Seattle Genetics (and Google).
We will be back in the morning with our next update but we have lots more to talk about. Subscribers, check the Members Area for the updates.
Tags: About options trading, GOOG, option trading, SGEN, SGEN halt, stock and option, stock exchange, stock halts, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in BioTech, Hot Stocks, Market Commentary | Comments Off
Friday, July 1st, 2011
9:00am (EST)
The bulls made it 4 in-a-row on Thursday by ending June with a bang and their drive for five is looking pretty good as futures are up this morning. Yesterday’s gains were a combination of positive Greece news, window dressing, and a continued bounce off the 200-day moving averages. Throw in the fact that the bulls have been abused for 7 out-of-the-last 8 weeks made it an almost given we were due for a relief rally.
The Dow jumped 153 points, or 1.3%, and finished at 12,414. The index easily topped our 12,350 target with a little fluff and will now shoot for 12,600 before the 3-day weekend. Support comes in at 12,350 and 12,200 should the bulls fade.
The S&P added 13 points, or 1%, and settled at 1,320. We said to look for a run up to 1,325 once the index broke 1,300 and it kissed 1,322 yesterday. Next up is the 1,334 area and then a possible test up to 1,350. Downside help is at 1,300 then 1,275.
The Nasdaq advanced 33 points, or 1.2%, and closed at 2,773. Tech also took out our 2,750 target and is only 1% away from testing the 2,800 level. From there, look for 2,900 to come into a play and if that were to happen the bulls could easily push 3,000. Support comes in at 2,750-2,725.
We mentioned yesterday the market was on pace for a 4% gain for the week but the indexes still ended the quarter slightly lower. The key point we want to make here is that while we have enjoyed the rally, and June was super good to our subscribers, we still have to remain somewhat cautious until the market actually breaks to new highs. Otherwise, we could just be headed to the top of the trading range we have been in since February so it’s important to remember this.
We will talk more about this in our afternoon update but let’s enjoy the gains for now and continue to play what the market is giving us. There are a number of economic reports due out this morning, starting with the final Michigan Consumer Sentiment index and the ISM Manufacturing Index which are due out shortly after the open (10am). If that weren’t enough, May’s Construction Spending report will also be announced. An hour before the closing bell, the market will get a briefing on Auto and Truck sales for June.
We have included a number of new possible trades on our Watch List as we closed out 2 more winning trades yesterday which cleared some room in our portfolio. We may wait until next week to initiate new positions but there are a couple plays that we really like so we may add them today if there is a pullback. We also have some action items we may need to take care of for our Weekly Wrap portfolio so stay lock-and-loaded for those Trade Alerts as well.
Also, watch Dendreon (DNDN, $39.44, down $1.06) today and this month. Shares were back above $40 last night in after-hours after Medicare said it would pick up the tab for the company’s cancer drug, Provenge, which cost $93,000 to complete a treatment. Dendreon also got the okay from the FDA to run a plant in L.A. which will help with increased production. There is a clearly a win-win for a stock that is within a stone’s throw of its 52-week high of $44.
Dendreon has been in a year-long trading range and a break above $44 could lead to blue skies and a share price north of $50.
Futures are up as we head to press. Dow futures +21; S&P 500 futures +1; Nasdaq futures +2. Subscribers, check for the current updates inside the Members Area.
Tags: About options trading, Dendreon news, dndn, option trading, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in BioTech, Market Analysis, Market Commentary | Comments Off
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Bulls Walking on Thin Ice
Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
************************
If you are not a subscriber but would like to read more about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. Since early August we have made 48 recommendation, both calls and puts, and have hit on 40 out of 48 trades for a winning percentage of over 80%! Some of our recent winners include:
+169% on Joy Global (JOYG) call options in 2 days
+137% in Research In Motion (RIMM) put options in 3 weeks
+130% in Spreadtrum Communications (SPRD) call options in 4 weeks
+164% in FedEx (FDX) put options in 6 days
+184% in Goldman Sachs (GS) put options in 5 days
+191% in O’Reilly Automotive (ORLY) call options in 17 days
+100% in VMWare (VMW) call options in 4 days
We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors
Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off