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Thursday, February 2nd, 2012
9:00am (EST)
The bulls got sweet news on Wednesday following a good PMI reading out of China and optimism that progress was being made (again) in Greece’s debt talks. Also in the headlines were Germany’s manufacturing activity numbers which expanded for the first time in 6 months and FaceBook’s upcoming IPO (Initial Public Offering) which could fetch upwards of $5 billion.
The Dow gained 84 points, or 0.7%, to finish at 12,716. The blue-chips traded up to a high of 12,784 and fell just short of our 12,800 target.
The S&P added a dozen points, or 0.9%, to close at 1,324. The index traded to a peak of 1,330 and closed just outside of our 1,325-1,350 zone. We continue to say a break above the upper-end of resistance could carry the S&P to 1,375-1,400 over the near-term before we get the pullback in February.
The Nasdaq was higher by 35 points, or 1.2%, and settled at 2,848. Tech traded to a high of 2,855 and we said to watch for a run to 2,887 which is the 52-week high. We have been on record since November saying the Nasdaq could make a run to 3,000 and we would love to see it.
We are expecting another busy day today as we have 4 NEW TRADES for our Weekly Wrap and we may be busy with the Daily as we have a few profitable positions we may have to lock in profits. The Weekly Wrap trades should be released by 10am (EST) and the any other Trades Alerts could come out at any time before our midday update.
As we head to press, futures are showing a slightly higher open and like this: Dow (+7), S&P (+1), Nasdaq (+2).
Subscribers, check the Members Area for the updates.
Tags: FaceBook, Facebook IPO, weekly options
Posted in Economic News, Market Analysis | Comments Off
Tuesday, January 31st, 2012
12:45pm (EST)
The bulls were making a push towards resistance on renewed optimism that a deal with Greek bondholders and euro zone officials could be reached but got stymied by worse-than-expected economic news. The headlines were “negative” due to the misses but the numbers were still pretty good for the most part despite what the talking heads are saying.
The Case/Shiller 20-City Home Price Index fell 3.7% in November while the Chicago Purchasing Managers report showed a reading of 60.2 versus expectations for a reading of 63. Meanwhile, Consumer Confidence came in at 61.1 versus a forecast for print of 68. These are solid numbers but the market isn’t seeing that way, yet.
As a result, the bears saw a little daylight to push support one last time. While there remains a ton of headline risk this week, we still need to be cautious of a pullback although we are hoping the bulls make one last push towards the 52-week highs.
We can afford to be a little aggressive due to our incredible month but we are taking smaller positions in case the bears crack a couple layers of support.
The Financial stocks have turned positive which is a good sign as the Financial Select Spiders (XLF, $14.15, up $0.05) are trying to hold support and make another push at resistance which is up ahead at $14.50.
As we head to press, the Dow is down 56 points to 12,597 while the S&P is off by 3 points to 1,309. The Nasdaq is lower by 7 points to 2,805.
We are adding 1 more NEW TRADE today so we have to roll.
Subscribers, please check the Members Area for the updates. Also, today is the last day to take advantage of our special offer to get the Daily and Weekly publications for one low price. We are also including our options trading manual, How to Trade Options on Momentum Stocks, at no charge. This package comes with bi-monthly videos that show you how to read charts and find trades.
We have set up a special tab on our subscription page where you will see both the Daily and the Weekly in a package deal that reads Annual Subscription to Daily and Weekly Wrap. You will not need a coupon for this deal and the savings are over 65%. The tab will be removed on Wednesday.
https://secure.momentumoptionstrading.com/amember/signup.php
Do the paperwork and we will send out our option trading course to you as soon as we get your order and provide you access to our videos right away.
We will be back in the morning with our next update.
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 Economic News, Financial Stocks, Market Analysis | Comments Off
Monday, January 30th, 2012
1:40pm (EST)
Futures were weak throughout the night and worsened as the market headed towards the opening bell this morning. Much of the weakness can be blamed on Greece’s failure to come to an agreement on how to address their budget deficits which is dragging into the week after rumors persisted a deal was close over the weekend.
We talked about some of the issues that need to be addressed and that the main holdup seems to be Germany which wants to control the tax and spending decisions for the country. This has created a difficult environment and the market doesn’t like uncertainty.
Economic news here at home has come in ahead of expectations which have helped the bulls hold support. Personal Income rose 0.5% in December versus forecasts for an increase of 0.4%. Personal Spending was unchanged while expectations were for an increase of 0.1%. And finally, the Dallas Fed Manufacturing Index posted a reading of 15.3 which was higher than forecasts.
Although the bears are dominating today’s action, there’s some strength in certain stocks which is a good sign.
The Dow is down 66 points to 12,594 after falling through the 12,600 level. We said the first wave of support would come at 12,600-12,550 and the low today has been 12,529.
The S&P is lower by 7 points to 1,309 and has tested the 1,300 level while the Nasdaq is off by 8 points to 2,808.
Some stocks showing strength include Apple (AAPL, $452.11, up $4.83), Microsoft (MSFT, $29.43, up $0.20) and International Business Machines (IBM, $191.26, up $0.80) which is letting us know the bulls have backup.
The bears will likely do some damage today but the last few days in January and the first couple in February are normally pretty bullish so let’s see what happens. Most of our trades are holding up well despite today’s weakness so let’s go see where we are at. Subscribers, check the Members Area for the updates.
Tags: blue-chip stocks, chicken option trade, chicken trade, momentum, momentum options, option mentoring, stock options trading advisors, straddle option trade
Posted in Economic News, Market Analysis | Comments Off
Thursday, December 22nd, 2011
1:15pm (EST)
Futures were flat for much of last night and turned positive ahead of Europe’s open this morning which was a good sign. Following the “hold” on Wednesday by the bulls, we were curious to see how the overseas markets would open after Wall Street and the talking heads picked apart the ECB’s lending program. We were also excited about today’s economic numbers.
It has been awhile since we have written that last sentence but the news here in the States continues to come in better-than-expected. Initial Claims were down 4,000 to 364,000 versus estimates for 380,000. Continuing Claims came in at 3.54 million versus a forecast for 3.6 million claims.
Elsewhere, Personal Consumption increased 1.7% in the third quarter while the Chicago Fed National Activity Index had a reading of -0.37 versus expectations for -0.17. Additionally, the Michigan Consumer Sentiment Index came in at 69.9 compared to a forecast for a print of 68. Leading Indicators increased 0.5% versus calls for an increase of 0.3%. Third-quarter gross domestic product (GDP) increased by 1.8% versus a forecast for an increase of 2.0%.
After a slow start, the bulls are stepping on the gas. The Dow is up 62 points to 12,170 while the S&P is higher by 6 points to 1,250. If anything, we would love to see a close above this level. The Nasdaq is up a double-deuce (22 points) and is right on 2,600. If Tech can close above this level it would be a bonus.
There is still some tension between the clowns on the Hill as they try to extend the tax cuts but hopefully the politicians can get something done by tomorrow. This news could be bullish as well.
Our recent trades continue to shine so let’s go check on them. Subscribers, hit the Members Area for the updates.
Tags: option alerts, option trading, option trading services, options momentum trading, options on stock, options trading, options trading service, stock option trade, trade in options, weekly options trading
Posted in Economic News, Market Analysis | Comments Off
Monday, December 19th, 2011
1:25pm (EST)
Futures were pointing towards a lower start on Wall Street when the European markets opened for trading this morning following comments from European Central Bank chief Mario Draghi and the death of North Korean leader Kim Jong-il. Repeating the obvious, Dragi said the “agreement” at the European Union (EU) summit a few weeks ago was essential for resolving the region’s debt crisis and that the economic outlook for the region was uncertain, with substantial downside risks. He went on to say that a “silver bullet” outcome was unrealistic but also added the EU summit did more than what the markets are reflecting.
The death of Kim Jong-il wasn’t too much of a shock, considering his health, but the market is a little worried over the leadership of Kim Jong-un, his youngest son and his successor, who may have to “prove himself” to the military.
The market brushed back these worries following a positive NAHB Housing Market Index report. The NAHB reading of 21 was higher than the previous month’s level and 2 points ahead of forecasts. The bulls opened the session higher but were unable to hold the upside momentum as we head into the second half of trading.
The market is near session lows but support is holding once again. The good news is that while we chop around in this trading range, there are a lot of stocks on the verge of breaking down, or, they are bottoming and are ready to turn back up on the next rally.
We know the current range has been hard to sit through because as option traders, we love action. We normally average 2-3 trades per week but this is all we have opened for the MONTH of December. We often try to trade these ranges but most of the times you can get mixed results and at best, you will break even. We have seen numerous trading ranges like the current environment throughout 2011 and 2010 was even worse.
They say it’s hard to teach an old dog, new tricks, but we have learned not to push things when the market is in a funk. We have been building our Watch List to play the market’s next big more, which we still think is bullish, but we have listed both calls and puts in case there is a breakdown. Many of the stocks we are following are showing some of the same chart patterns as the indexes and we have outlined key technical areas to watch for. Until those are hit, we will sit tight, and wait for the action to come to us.
We have had an incredible year as far as our option recommendations so the last thing we need to do is push things. As we close out 2011 and our 5th-straight winning year since inception, we also want to make sure we get off to a great start for 2012. The good news is that we are seeing some great setups and it won’t be too long before we are back in the saddle.
As we head to press, the Dow is down 46 points to 11,820 while the S&P is lower by 7 points to 1,212. The Nasdaq is off by 10 points to 2,545. Subscribers, check the Members Area for the trade updates.
Tags: About options trading, 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 Economic News, Market Analysis, Market Commentary | Comments Off
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Market Looses Zip, Trends Lower
Monday, December 19th, 2011
1:25pm (EST)
Futures were pointing towards a lower start on Wall Street when the European markets opened for trading this morning following comments from European Central Bank chief Mario Draghi and the death of North Korean leader Kim Jong-il. Repeating the obvious, Dragi said the “agreement” at the European Union (EU) summit a few weeks ago was essential for resolving the region’s debt crisis and that the economic outlook for the region was uncertain, with substantial downside risks. He went on to say that a “silver bullet” outcome was unrealistic but also added the EU summit did more than what the markets are reflecting.
The death of Kim Jong-il wasn’t too much of a shock, considering his health, but the market is a little worried over the leadership of Kim Jong-un, his youngest son and his successor, who may have to “prove himself” to the military.
The market brushed back these worries following a positive NAHB Housing Market Index report. The NAHB reading of 21 was higher than the previous month’s level and 2 points ahead of forecasts. The bulls opened the session higher but were unable to hold the upside momentum as we head into the second half of trading.
The market is near session lows but support is holding once again. The good news is that while we chop around in this trading range, there are a lot of stocks on the verge of breaking down, or, they are bottoming and are ready to turn back up on the next rally.
We know the current range has been hard to sit through because as option traders, we love action. We normally average 2-3 trades per week but this is all we have opened for the MONTH of December. We often try to trade these ranges but most of the times you can get mixed results and at best, you will break even. We have seen numerous trading ranges like the current environment throughout 2011 and 2010 was even worse.
They say it’s hard to teach an old dog, new tricks, but we have learned not to push things when the market is in a funk. We have been building our Watch List to play the market’s next big more, which we still think is bullish, but we have listed both calls and puts in case there is a breakdown. Many of the stocks we are following are showing some of the same chart patterns as the indexes and we have outlined key technical areas to watch for. Until those are hit, we will sit tight, and wait for the action to come to us.
We have had an incredible year as far as our option recommendations so the last thing we need to do is push things. As we close out 2011 and our 5th-straight winning year since inception, we also want to make sure we get off to a great start for 2012. The good news is that we are seeing some great setups and it won’t be too long before we are back in the saddle.
As we head to press, the Dow is down 46 points to 11,820 while the S&P is lower by 7 points to 1,212. The Nasdaq is off by 10 points to 2,545. Subscribers, check the Members Area for the trade updates.
Tags: About options trading, 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 Economic News, Market Analysis, Market Commentary | Comments Off