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Thursday, December 29th, 2011
12:35pm (EST)
The bulls have gotten off to a good start today following yesterday’s 1% drubbing on semi-inspiring U.S. economic news. Jobless Claims came in under 400,000 at 386,000 but up from last week’s print of 366,000. Wall Street was expecting 379,000. Despite the slight miss, this is the fourth-straight week claims have held under 400K which is considered the break-even level for jobs creation.
Elsewhere, Pending Home Sales were up over 7% as the Index came in at 100.1 for November, its highest level in nearly 20 months. This number can fluctuate because not all sales lead to closings but nonetheless it was a good sign that home buyers are starting to poke around for good deals.
The Dow is up 103 points to 12,254 while the S&P 500 is higher by 10 points to 1,259. The Nasdaq is showing a 19 point pop and is at 2,609.
We would love to see these levels hold and then Dow 12,350; S&P 1,275; and Nasdaq 2,650 on Friday but we also have downside targets we are watching.
There seems to be a split on where the market is headed for January with half the “pros” saying we are in for a bear market while the other half is betting on a bullish breakout. We are more on the bullish side but our portfolio is getting light as we wind down the year and WAIT for the market’s next move. We said this morning to stay light because the trading range could continue if the bulls hold support.
If there isn’t a breakout over the next month or two, and support fails, we aren’t nervous about a market pullback or selloff. We can make just as much profit from buying put options, but the possible trading range we continue to ride doesn’t have to be played unless you are selling options which is a new strategy we may introduce in 2012.
We have been talking about this 2-month range for weeks as we said it could be ongoing. The charts we went over in our video on Monday and in our Weekly Wrap showed the current range we are in and we outlined these “boxes” to give you a clearer picture.
The charts are still bullish and maybe the bulls will need another Bernanke rescue to break through resistance. However, we are keeping our eye to the downside on specific breaking points but until they are triggered, we will sit tight.
Before we go we wanted to remind you of the special we have. Remember, there is also only 2 days left to hit us up on our special offer to get our trading manual and ongoing videos at no cost (an $899 value!). The options course and videos are ongoing and all you have to do is sign-up for a 1-year membership to our Daily newsletter.
We are also including a 1-year Weekly Wrap subscription with your purchase. (Current subscribers, if you recently renewed a 1-year Daily subscription and would like to get this added, please contact us). This newsletter went 16-0 for 2011 and we have a number of trades which could get “called-away” in January. This newsletter recommends solid stocks with high options premiums which act like dividends to produce MONTHLY double-digit gains.
A 1-year membership to the Daily is priced at $924 and the Weekly Wrap 1-year is priced at $599. The trading course, How to Trade Options on Momentum Stocks, is priced at $899. If you go to our subscription page you will see “Annual subscription to Daily and Weekly” for $995, a savings of over 55%! Click on that and we will do the rest.
There aren’t too any option newsletters who can say they have had a good 2011. We can and we have the results to prove it. Our winning percentage will be near 70% for ALL of our trades for 2011 and most fund managers would be happy to be at 52% which means they made money. An exceptional hedge fund manager might average 60% wins on their trades. Obviously, we deserve the right to rub it in but it has been a hard market to trade and a lot of “smart” people were made to look “stupid” and that is not our style.
We try not to gloat because the market can always humble you and the first 7 months were just as hard on us as we were flat coming into August. However, we had an incredible run where we hit on 44 out of 52 trades winning trades which allowed us to coast into year end.
To take advantage, please go to the subscription page. Your discount and trading manual will be applied and shipped with your order and we look forward to another profitable year in 2012!
Subscribers, check the Members Area for the updates and we will be back in the morning with our next outlook.
Tags: options trading course
Posted in Commodities, Company Commentary, Covered Calls, Earnings, Entertainment Stocks, Hot Stocks, IPOs | Comments Off
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
Sunday, November 20th, 2011
10:00pm (EST)
1. Market Summary
2. Darling International (DAR) Could Be Bottoming
3. Earnings Preview – Perfect World (PWRD)
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. 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!
Tags: stock options trading advisors
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off
Thursday, October 27th, 2011
12:40pm (EST)
Futures were pointing towards a jailbreak by the bulls this morning and the market is soaring after Europe came through with a “plan”. We knew things could get ugly during yesterday’s EU summit meeting but little did we know punches would be thrown. Of course, tensions build when you put 17 people in a room with the weight of the world, literally, on their shoulders.
We mentioned the talking heads and slick talking Wall Street analysts were calling for a pullback into yesterday’s close but they failed to read the charts and underestimated the wheeling-and-dealing the Europeans are capable of. When push came to shove, the EU leaders worked late into the night and finally came up with a game plan.
To dummy things down, the EU leaders proposed 3 actions and they were: a reduction in Greece’s current debt; a recapitalization of the region’s banks so they can absorb the hit, or losses, from Greece’s bonds; and the reinforcement of the bailout fund which was raised to $1.4 trillion.
Add it all up and you get a huge rally past resistance and a big smile on our faces since we are in a ton of call options.
The Dow is surging 310 points to 12,178 while the S&P 500 is zooming 36 points to 1,277. The Nasdaq has easily cleared 2,700 and is soaring 73 points, to 2,724. The price targets we listed on Sunday night/ Monday morning are in play as our crystal ball continues to nail this market’s pivot points. The S&P Volatility index (VIX, ^VIX, 25.17, down 4.69) is down 15% and we said to look for a drop to 22 once the bulls took out the 30 level.
We have been busy today and we said we would be ringing the register a lot this morning. October has been an incredible month for us but we have been hot since early September and we expect our roll to continue for the rest of the year.
With the market right near our upper-end targets and with the weekend almost upon us, we can’t wait to do the homework to see where this indexes are really headed!
Subscribers, check the Members Area for the updates and stay on the lookout for either new trades or possible profit alerts as this market continues to treat us like gold.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Company Commentary, Market Commentary, VIX | Comments Off
Tuesday, October 18th, 2011
9:15am (EST)
The bulls went into the week with all the momentum and were on the verge of a jailbreak but after Monday’s session, like we have seen a half-dozen times since August, they failed to break through the upper end of the current trading range.
As we were doing the Weekly Wrap over the weekend, we did see trouble ahead as the market got closer to a European bailout (a sell the news event) but our outlook for this week and yesterday was bullish. However, our planning was disrupted after Europe sped things up over the weekend as they try to have a plan in place a week earlier.
Although the news shows the commitment to get something done quickly, the bears seem to believe Europe is struggling to come up with a comprehensive plan capable of stabilizing the region. Germany seemed to back those feelings which caused yesterday’s drubbing.
A bullish argument can be made that the market was due for a pullback anyway following last week’s 6% pop and the fact that we were at the top of the trading range that has been ongoing since August. However, the action was troublesome considering there was no follow-through and the indexes went out near their lows.
The Dow fell 247 points, or 2.1%, to finish at 11,397. The blue-chips traded to a low of 11,378 which was just above our 11,350 support target. There is further help at 11,200 while resistance remains 11,600 then 11,800.
The S&P dropped 24 points, or 1.9%, to end at 1,200. The index slipped below this level, to 1,198, but could test 1,175-1,150 on a continued pullback. Resistance remains strong at 1,225.
The Nasdaq tanked 53 points, or 2%, to settle at 2,615. Tech was able to hold the 2,600 level after testing a low of 2,606 but could fall to 2,550 on continued weakness.
As we have seen with trading ranges, they are often hard to predict as to when a breakdown or breakout is going to occur but we do know the longer we stay in them, the bigger the move will be. The bulls have been here before just like the bears have when we are at the lower end of the range (just 2 weeks ago) and yesterday’s failed attempt to breakout is just another reminder on how hard ranges are to trade.
The good news is that we have been cautious of these moves as we buy the dips and sell the rips. It is too early to tell if we should start adding put positions as we closed out 4 winning call option trades yesterday but we may have too.
Even better, our portfolio is getting light again which means we can load up new trades while having the luxury of waiting for the action to come to us. As such, we have a mixture of calls and put plays on our Watch List.
Despite the market’s pullback, the bulls were able to hold support so they haven’t thrown in the towel just yet and one day doesn’t make a trend change. However, it appears we could have a mixed open after International Business Machines (IBM, $186.59, down $3.94) disappointed Wall Street with their numbers after Monday’s closing bell. We will talk about IBM in our afternoon update.
Dow futures are down 12 points to 11,289 while the S&P 500 futures are up 2 points to 1,195. The Nasdaq 100 futures are advancing 10 points to 2,331. Subscribers, check the Members Area for the updates and be sure to pay close attention to our Watch List as we look to establish new positions. A Trade Alert is possible by 11am (EST) if we see something we like.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Company Commentary, Earnings | Comments Off
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Bulls Rebound, Trading Range Continues
Thursday, December 29th, 2011
12:35pm (EST)
The bulls have gotten off to a good start today following yesterday’s 1% drubbing on semi-inspiring U.S. economic news. Jobless Claims came in under 400,000 at 386,000 but up from last week’s print of 366,000. Wall Street was expecting 379,000. Despite the slight miss, this is the fourth-straight week claims have held under 400K which is considered the break-even level for jobs creation.
Elsewhere, Pending Home Sales were up over 7% as the Index came in at 100.1 for November, its highest level in nearly 20 months. This number can fluctuate because not all sales lead to closings but nonetheless it was a good sign that home buyers are starting to poke around for good deals.
The Dow is up 103 points to 12,254 while the S&P 500 is higher by 10 points to 1,259. The Nasdaq is showing a 19 point pop and is at 2,609.
We would love to see these levels hold and then Dow 12,350; S&P 1,275; and Nasdaq 2,650 on Friday but we also have downside targets we are watching.
There seems to be a split on where the market is headed for January with half the “pros” saying we are in for a bear market while the other half is betting on a bullish breakout. We are more on the bullish side but our portfolio is getting light as we wind down the year and WAIT for the market’s next move. We said this morning to stay light because the trading range could continue if the bulls hold support.
If there isn’t a breakout over the next month or two, and support fails, we aren’t nervous about a market pullback or selloff. We can make just as much profit from buying put options, but the possible trading range we continue to ride doesn’t have to be played unless you are selling options which is a new strategy we may introduce in 2012.
We have been talking about this 2-month range for weeks as we said it could be ongoing. The charts we went over in our video on Monday and in our Weekly Wrap showed the current range we are in and we outlined these “boxes” to give you a clearer picture.
The charts are still bullish and maybe the bulls will need another Bernanke rescue to break through resistance. However, we are keeping our eye to the downside on specific breaking points but until they are triggered, we will sit tight.
Before we go we wanted to remind you of the special we have. Remember, there is also only 2 days left to hit us up on our special offer to get our trading manual and ongoing videos at no cost (an $899 value!). The options course and videos are ongoing and all you have to do is sign-up for a 1-year membership to our Daily newsletter.
We are also including a 1-year Weekly Wrap subscription with your purchase. (Current subscribers, if you recently renewed a 1-year Daily subscription and would like to get this added, please contact us). This newsletter went 16-0 for 2011 and we have a number of trades which could get “called-away” in January. This newsletter recommends solid stocks with high options premiums which act like dividends to produce MONTHLY double-digit gains.
A 1-year membership to the Daily is priced at $924 and the Weekly Wrap 1-year is priced at $599. The trading course, How to Trade Options on Momentum Stocks, is priced at $899. If you go to our subscription page you will see “Annual subscription to Daily and Weekly” for $995, a savings of over 55%! Click on that and we will do the rest.
There aren’t too any option newsletters who can say they have had a good 2011. We can and we have the results to prove it. Our winning percentage will be near 70% for ALL of our trades for 2011 and most fund managers would be happy to be at 52% which means they made money. An exceptional hedge fund manager might average 60% wins on their trades. Obviously, we deserve the right to rub it in but it has been a hard market to trade and a lot of “smart” people were made to look “stupid” and that is not our style.
We try not to gloat because the market can always humble you and the first 7 months were just as hard on us as we were flat coming into August. However, we had an incredible run where we hit on 44 out of 52 trades winning trades which allowed us to coast into year end.
To take advantage, please go to the subscription page. Your discount and trading manual will be applied and shipped with your order and we look forward to another profitable year in 2012!
Subscribers, check the Members Area for the updates and we will be back in the morning with our next outlook.
Tags: options trading course
Posted in Commodities, Company Commentary, Covered Calls, Earnings, Entertainment Stocks, Hot Stocks, IPOs | Comments Off