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Thursday, December 15th, 2011
2:15pm (EST)
The market is trying to hold onto today’s gains following a strong open by the bulls on better-than-expected economic data. Futures were slightly higher before the bell but got a huge pop after jobless claims came in well below estimates. The session started with a bang as the Dow surged triple-digits at the open but the bears made an appearance shortly after the Philadelphia Fed report which caused a pullback despite better-than-expected numbers.
We said the bulls needed good news and today’s weekly jobless claims showed a drop to 366,000, which was below expectations for 390,000 claims. We were hoping for anything under 400,000 to avoid a selloff and the only thing that worries us is that the jobs report is seasonal right now. Meaning, what happens in January when all the Holiday Help is let go?
Elsewhere, the Producer Price Index (PPI) increased 0.3% versus expectations for a rise of 0.2%. The Empire Manufacturing Index came in at 9.5 which was much higher than the expected print for a 3.0 print. And finally, the Philly Fed Survey came in at 10.3 compared to expectations for a reading of 5.0.
It is nice to see a rebound but it is clear Wall Street remains concerned over the debt crisis in Europe. The major averages seem to be drifting sideways as we head to press and if the gains hold, it appears we could be stuck in a continuing trading range. At some point we will get a breakout or breakdown but it may not come until January as we see the market range bound through yearend.
The good news is we are building an impressive Watch List to play the market’s next move and we are getting close. In the meantime, we are also looking for a few more covered call candidates because if we do stay range bound we want to at least put some money to work.
As we head to press, the Dow is up 82 points to 11,905 while the S&P 500 is higher by 7 points to 1,219. The Nasdaq is showing a pop of 9 points to 2,548. Subscribers, check the Members Area for the updates.
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 | Comments Off
Monday, December 12th, 2011
9:00am (EST)
(Note: Please log into the Members Area to see today’s charts)
The bulls’ came into the week feeling good about their chances in pushing the market past resistance. The bears’ only defense would be to hold the 200-day moving averages (MA’s) which came into play following Monday’s initial pop.
The indexes made a strong run at resistance to start the week after learning France and Germany had outlined the basic principles of another “plan” to solve Europe’s debt woes. However, the bulls’ momentum came to a screeching halt after rumors swirled that Standard & Poor’s was going to put several eurozone countries on “credit watch negative”. The market managed to recover from the headline blow to finish in positive territory which was the sign we were looking for.
Tuesday’s start felt like a hangover as Standard & Poor’s was back at it again saying they were considering expanding its downgrade threat against Europe to include the bailout fund which put some pressure on the market. U.S. futures were down 0.5% when the overseas markets starting trading but the bulls held support throughout the day and actually took the market fractionally higher.
Wednesday got off to a great start following word of a possible $600 billion International Monetary Fund (IMF) lending program which lead to a great open but the market finished flat for the day after an IMF official said no such action was being considered.
Thursday’s 2% drop was all about nervousness ahead of the European summit meeting on Friday and comments from ECB President Mario Draghi who said there would be no “QE” type of bond buying event, as rumored. This flushed out a lot of traders who basically threw in the towel and didn’t want to be long heading into Friday’s action.
Futures were steady before the European markets opened (3am EST) after 23 of the 27 EU leaders reached an agreement before their markets opened. Hungary, Sweden, and the Czech Republic will probably go along with the “plan for another new plan” to make it 26, but Britain has had enough and will go it alone. The relief rally on Friday was based on an agreement to loan the IMF $200 billion euro with $150 billion coming from the countries on board. They also gave themselves a 3-month extension to have a signed plan in place by March 2012 but we doubt Standard & Poor’s is satisfied.
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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. This publiction is showing a 200% return for those who started the year with $10,000. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is looking to go 18-0 this week for 2011. Sign-up now and receive access instantly!
Tags: chicken option trade, chicken trade, momentum, momentum options, option mentoring, stock options trading advisors, straddle option trade
Posted in Economic News, Market Analysis, Market Commentary | Comments Off
Tuesday, November 29th, 2011
12:20pm (EST)
Most of you aren’t shocked by today’s headlines that AMR (AMR, $0.35, down $1.27), the parent company of American Airlines, has filed for Chapter 11 bankruptcy after blaming higher fuel costs and its failure to win a labor deal with its pilots. The company said it currently has assets of $25 billion while its liabilities are approaching $30 billion. With only $4 billion in cash, AMR felt it would be best to reorganize now and the Chapter 11 filing won’t affect flights during the bankruptcy process.
Airlines stocks have never been a great long-term investment, unless you short them, but there are times when you can trade them. The industry has never been able to flip a profit since being deregulated in the 1970’s so trade this sector with caution.
Although 3Q earnings season is winding down, there are still a few notable companies that will be reporting over the next few weeks. Tiffany & Company (TIF, $67.45, down $6.17) beat Wall Street’s estimates after reporting a profit of $90 million, or $0.70 a share, versus $55 million, or $0.43 a share, in the year earlier period. Revenue came in at $822 million. Analysts were expecting $0.61 a share on sales of $804 million.
Going forward, the company said it expects earnings of $1.48-$1.58 for the current quarter but the suit-and-ties were looking for $1.63, on average. Tiffany pointed the finger at Europe for the lowered expectations, which was no surprise, but either way, shares are down 8%.
As far as the market, the bulls are making continued progress after getting a better-than-expected Consumer Confidence number. The November reading of 56 was a big jump from October’s print of 40.9 and much higher than the forecast of 44. Elsewhere, the S&P Case Shiller Index fell 0.6% and missed expectations for no change.
The European markets are now closed for the day as the region’s top brass will meet behind closed doors tonight. They will be trying to come up with a better solution for their current debt crisis so the news over the next few days will be market moving.
The bulls have done a great job in pushing the indexes forward as they have broken through our near-term resistance targets.
The Dow is up 95 points to 11,617 while the S&P 500 is higher by 9 points to 1,202. The Nasdaq however, is struggling a bit and was last seen at 2,528, up a point.
We have 2 NEW TRADES we are releasing today that we are expecting to return 100%+ on each so we have to roll. Subscribers, check the Members Area for the updates and the new option recommendations.
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 Earnings, Economic News, Sectors | 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
Tuesday, November 15th, 2011
1:15pm (EST)
Dow futures were down triple-digits before the opening bell this morning but steadily improved before the start of trading. The major indexes opened slightly lower but turned positive during the first half-hour of trading.
Economic news was mixed but favored the bulls.
The Producer Price Index (PPI) for October was down -0.3% versus estimates for an increase of 0.2%. October PPI less food and energy came in flat versus a forecast of 0.1% for the month. On the plus side, Retail Sales were up 0.5% following calls for a 0.2% pop. October Retail Sales less autos came in at 0.3% expectations for a flat month. And finally, Business Inventories remained flat in September compared with calls for a 0.1% increase.
Trading since has been choppy but the bulls are gathering momentum as we head to the turn.
The Dow is up 51 points to 12,130 while the S&P 500 is higher by 7 points to 1,258. The Nasdaq is showing a gain of 21 points to 2,678.
We have a lot to cover today and we are close to adding another new trade as we closed two more winners today for 31-straight. Subscribers, check the Members Area for the updates.
Posted in Economic News, Market Analysis, Market Commentary | Comments Off
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Market Looking to Put Europe on Backburner
Monday, December 12th, 2011
9:00am (EST)
(Note: Please log into the Members Area to see today’s charts)
The bulls’ came into the week feeling good about their chances in pushing the market past resistance. The bears’ only defense would be to hold the 200-day moving averages (MA’s) which came into play following Monday’s initial pop.
The indexes made a strong run at resistance to start the week after learning France and Germany had outlined the basic principles of another “plan” to solve Europe’s debt woes. However, the bulls’ momentum came to a screeching halt after rumors swirled that Standard & Poor’s was going to put several eurozone countries on “credit watch negative”. The market managed to recover from the headline blow to finish in positive territory which was the sign we were looking for.
Tuesday’s start felt like a hangover as Standard & Poor’s was back at it again saying they were considering expanding its downgrade threat against Europe to include the bailout fund which put some pressure on the market. U.S. futures were down 0.5% when the overseas markets starting trading but the bulls held support throughout the day and actually took the market fractionally higher.
Wednesday got off to a great start following word of a possible $600 billion International Monetary Fund (IMF) lending program which lead to a great open but the market finished flat for the day after an IMF official said no such action was being considered.
Thursday’s 2% drop was all about nervousness ahead of the European summit meeting on Friday and comments from ECB President Mario Draghi who said there would be no “QE” type of bond buying event, as rumored. This flushed out a lot of traders who basically threw in the towel and didn’t want to be long heading into Friday’s action.
Futures were steady before the European markets opened (3am EST) after 23 of the 27 EU leaders reached an agreement before their markets opened. Hungary, Sweden, and the Czech Republic will probably go along with the “plan for another new plan” to make it 26, but Britain has had enough and will go it alone. The relief rally on Friday was based on an agreement to loan the IMF $200 billion euro with $150 billion coming from the countries on board. They also gave themselves a 3-month extension to have a signed plan in place by March 2012 but we doubt Standard & Poor’s is satisfied.
**********************************
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. This publiction is showing a 200% return for those who started the year with $10,000. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is looking to go 18-0 this week for 2011. Sign-up now and receive access instantly!
Tags: chicken option trade, chicken trade, momentum, momentum options, option mentoring, stock options trading advisors, straddle option trade
Posted in Economic News, Market Analysis, Market Commentary | Comments Off