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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, October 17th, 2011
1:00pm (EST)
Futures were pointing towards a strong open when we hit the rack last night as it appeared the market would rally after getting word that European finance leaders were working towards a solution to the debt crisis and plan to have something on the table by the end of the week. However, Germany came out this morning and calmed the bulls’ enthusiasm by saying this weekend’s European Union (EU) meeting will not be a miracle cure and that it will not fix all of the eurozone’s financial woes.
Here at home, economic news was better-than-expected but not all that great. The Empire State Manufacturing Index for October came in at -8.5, up from -8.8 in September, but still came in short of expectations for a print of -4.
In M&A news, a major merger between Kinder Morgan (KMI, $28.65, up $1.76) and El Paso (EP, $24.25, up $4.66) has also failed to lift the market. We said a few weeks ago with distressed stock prices we could see some action as Kinder will pay $38 billion in cash and stock, or nearly $27 a share, to acquire El Paso.
Turning to earnings, Halliburton (HAL, $35.02, down $2.41) is down nearly 7% despite reporting a blowout revenue quarter.
The company reported profits rose 25% to $683 million, or $0.74 a share, on record quarterly revenue of $6.54 billion. The results included a write-off of $0.18 a share for discontinued operations or they would have posted 92 cents share. Wall Street was looking for $0.92 a share on sales of $6.39 billion.
After the bell, International Business Machines (IBM, $187.35, down $3.18) will report their earnings along with VMWare (VMW, $89.50, down $3.58). We were able to close our 14th winning trade this morning and we have profits to take on 3 more trades making it 17-in-a-row!
As we head to press, the Dow is down 187 points to 11,457 while the S&P is lower by 18 points to 1,206. The Nasdaq is off by 47 points to 2,620. Subscribers, check the Members Area for the updates.
Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Earnings, European Union (EU), Market Analysis, Market Commentary | Comments Off
Thursday, May 20th, 2010
9:00am (EST)
Another case of Nelly Nerves hit Wall Street Wednesday as worries on the euro continue to set the tone of trading. Although there was a slight bounce off the 4-year lows for the euro, we mentioned yesterday that this theme will continue to play out like a broken record until the market gets tired of the scratches or somebody changes the music.
The Dow fell 186 points intraday and hit a low of 10,324 before recovering yesterday. The index ended at 10,444, a loss of 67 points, or 0.6%. It was the Dow’s ninth drop in 12 days.
The S&P 500 fell to a low of 1,100 but made up some ground to close at 1,115, down 6 points, or 0.5%. The Nasdaq settled at 2,298, a 19 point hit, or 0.8%, after bottoming out at 2,270. We are watching Tech the most because it is rapidly approaching our 2,200 downside target and will lead lower if the bears continue to attack.
The market hates uncertainty and the euro has been the driving force behind the recent market sell-off. We haven’t reached a boiling point, yet, which is why we still think there is some downside to come.
Greece wants out of the European Union (EU) all together while Germany seems a little uneasy and took steps to ban naked short selling which is now live. The rule covers European government bonds, credit default swaps and a few stocks but there is no telling what else might be coming down the pipe as far as the other 14 EU countries.
The bottom line in a few months, or next earnings quarter, will be how much will the weakness in the euro hurt the profits of the multi-national U.S. companies? Until we get clear signs, we seeing selling pressure into June and maybe into July unless the market starts to believe Europe CAN handle the $1 trillion bailout program that was agreed upon last week.
As far as the agenda for today, it looks like smooth sailing to start as futures are pointing towards a nasty open. We have several open put option trades going and we might use this morning’s weakness to ring the register on a few of our trades.
The Dow futures are down a whopping 159 points to 10,246 while the S&P 500 futures are down 21 points to 1,088. The Nasdaq 100 futures are off by 33 to 1,835.
There is plenty to talk about this morning as far as individual stocks but with the futures taking a bloodbath many of our current trades should explode to the upside this morning. We have been warning of a pullback, correction, or a move lower and “all we want to do is ride” this market lower.
Subscribers, check the Members Area for the updates this morning, and make sure to be on the alert for some important updates throughout the day.
Tags: European Union (EU), option picks, option signals, options alerts, stock options trading
Posted in European Union (EU), 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