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Tuesday, October 9th, 2012
12:35pm (EST)
The market is treading water today following comments from the International Monetary Fund (IMF) after they cut their forecasts for global growth and warned of a world-wide slowdown. More importantly, they believe France, Spain, Greece and several other Eurozone countries won’t meet their budget-deficit targets they have agreed to.
The bulls brushed off the news at the open and tried to push positive territory but Tech has been weak and the chaos in Greece is weighing on the indexes as well. Economic news will pick up starting tomorrow and the nonfarm payrolls report is still being questioned. With jobless claims coming up on Thursday, Wall Street will be looking for clues on why the rate dropped from 8.1% to 7.8%. Perhaps more people are selling items on eBay (EBAY, $46.74, down $1.18). (read more…)
**********************
If you are not a subscriber but would like to read more, please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing tremendously well for 2012.
Since mid-August, we have closed 21-out-of-23 winning recommendations. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 135-45 (76% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Here are some more winners so far this year: +576% on GMCR,+475% on AXP, +292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few.
Our average trade recommendation usually last 3 weeks or less and we have closed some trades in as little as 24 hours. We target triple-digit returns for all of our option picks for the Daily and double-digit returns for the Weekly Wrap. We are excited about the last quarter of the year.
If you are not yet a subscriber, come see why jaws are dropping for those who follow Wall Street and options trading.
Posted in Economic News, European Union (EU), Market Analysis, Market Commentary | Comments Off
Wednesday, September 12th, 2012
9:00am (EST)
The bulls evened the score on Tuesday as they were able to hold on for the win following a strong start. The indexes came off their highs as nervousness set in ahead of this morning’s key vote in Germany and the impending Fed news on QE3 but hit key milestones in the process.
The Dow jumped 69 points, or 0.5%, to end at 13,323. The blue-chips finally made a fresh 52-week and nearly 5-year high after kissing 13,354, up 100 points. The Dow cleared our 13,350 target once in the morning and again in the afternoon which opened the door for a pop to 13,500-13,600. Support is at 13,200 and then 13,000.
The S&P 500 gained 4 points, or 0.3%, to settle at 1,433. The index kissed 1,437.76 intraday but fell short of Monday’s 52-week peak of 1,438.74 despite pushing green all day. We have called for a run to 1,450 with the possibility of hitting 1,500 this month but a close below 1,400 would be bearish.
The Nasdaq edged high by a half-point, or 0.02%, to close at 3,104. Tech was in danger of ending in the red and below 3,100 but turned positive again late in the day to finish above support. The low for the day was 3,099 which occurred about 30 minutes before the closing bell. We still believe the bulls can trip 3,250 but a close below 3,100 and then 3,050 would signal the end of the recent uptrend.
The Russell 2000 added nearly 3 points to finish at 841.91 and is a six-pack away from a new 52-week party. The S&P Volatility Index ($VIX, 16.41, up 0.13) traded down to 15.46 before ending slightly higher.
Futures are showing a strong open after Germany’s Constitutional Court approved the European Stability Mechanism (ESM) which was a big relief for the bulls: Dow (+46); S&P 500 (+5); Nasdaq (+15).
Tags: Dow Futures, ESM, European Stability Mechanism
Posted in European Union (EU), Market Analysis, Market Commentary, VIX | Comments Off
Monday, September 10th, 2012
9:00am (EST)
“We factored in a possible 1%-2% move for the market on Friday based on what Bernanke did or didn’t say and at one-point the indexes were up nearly 1.5%. There was plenty of volatility at the open and once the fireworks began but the trend was higher after Big Ben said the Fed WILL print more money, we mean, provide more stimulus.
Here is the money sentence that gave the bulls the green light:
“Taking due account to the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.” (END)
The knee jerk reaction was expected but Big Ben basically checked the pot back to Mario Draghi which gave him two more weeks to see what Europe does. The Fed and its members should be mum until they meet again on September 12 as there is technically a week-long blackout period ahead of the meeting.
Draghi has cried wolf more times than we care to count and he will take center stage again on Thursday (September 6) as the European Central Bank (ECB) meets. The market is expecting the ECB to announce some kind of bond-buying program but there is, believe it or not, a chance they delay an announcement until next week on September 12 which is when Germany is expected to vote on the European Stability Mechanism (ESM).
To review, the ESM provides “financial assistance”, or bailouts, to the members of the eurozone who need financial aid. We have mentioned all summer long Germany has grown tired of flipping the bills for the struggling counties like Greece and Spain and is expected to vote on the treaties that were established for the fund. Back in July, a German court looked into the complaints of the constitutionality of the ESM and this vote could be crucial in if the euro gets saved or not. If Germany does give the okay for the ESM to establish a permanent bailout fund, the markets should rally, but again, this news isn’t expected until next week although there has been a leak. Germany’s Finance Minister, Wolfgang Schaeuble, has gone on record saying that he does not see the Constitutional Court blocking the established treaties so Draghi could be safe if he gives the market something to nibble on.
The Dow Transportation Average showed signs of life on Friday and will need to break out of its downtrend if the bulls expect to test new highs. The index trended lower all summer before the August bounce and pullback which is in danger of falling below the uptrend line. A close below 4,950 on the Dow Transports could spell lights out for the bulls. A close above 5,050 would be bullish.
Commodities also made a nice move and we mentioned midweek gold and silver were on the verge of breaking out:
This week has the potential to be bullish as the charts favor the bulls. The Tuesday after Labor Day is usually bullish and it is the first trading day of the month. With the suit-and-ties coming off their August vacations, they will be anxious, or forced, to buy stocks if the market gets off to a strong start and the rally resumes.
There are several U.S. economic reports slated for the week with Friday’s Nonfarm Payroll report and Unemployment numbers which could help or hinder any momentum. This week’s headlines will likely get the market back at resistance or short-term support. This means the indexes would again be at crucial levels heading into the following week which will also be packed with Tech news.” (from 9/3/2012 Weekly Wrap/ Monday Morning Outlook)…
The bulls made a run at new highs after the European Central Bank (ECB) promised unlimited QE (Quantitative Easing) by targeting bonds of the struggling nations in the eurozone. Mario Draghi, president of the ECB, delivered exactly what the markets around the world wanted to here.
Friday’s unemployment news was a disaster but the market inched higher as Wall Street now expects The Bernanke to spring into action as soon as this week. The bears are left with few options as they try to hold down the last layer of resistance and this week will be crucial with Germany voting on the constitutionality of the bailouts and the FOMC Rate Decision on tap. (continued…)
***********************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing well for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 123-37 (77% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Our Weekly Wrap Covered Call Portfolio is now 24-0 for 2012. We were 16-0 in 2011. Some of our sweet returns include +55% on SZYM, +27% on CLNE, +38% on VVUS, +19% on MGM, 18% on DNDN, and 20% on DAR. Remember, if you can make 20% on just 5 trades, you will double your money.
Tags: option trading strategies, options trading, stock options consultant, stock trading advisors
Posted in Economic News, European Union (EU), Gold, Market Analysis, Market Commentary | Comments Off
Friday, September 7th, 2012
9:00am (EST)
All Aboard!!! Ha, ha, ha….
We played a classic at the office headquarters this morning to get our day started and there was no introduction needed after the bulls pushed new multi-year and decade highs yesterday. Mario Draghi and the European Central Bank (ECB) said exactly what the market wanted to hear which lead to a bull jailbreak.
The Dow zoomed 245 points, or 1.9%, to close at 13,292. The index easily cleared 13,200 and challenged 13,300-13,350 which is the last line of resistance before new 52-week highs.
The S&P popped 29 points, or 2%, to settle at 1,432. The index went out at its high after clearing our 1,425 target which sets up a run to 1,450. Yesterday’s close was also a 52-week and 4-year high for the S&P.
The Nasdaq soared 67 points, or 2.2%, to finish at 3,135. We mentioned once 3,100 cleared there could be a push to 3,150 which is less than a half-percent away. Tech closed at an 11-year high.
The Russell 2000 added 17 points, or 2%, to end at 838. Here were our thoughts Wednesday morning as we could feel something in the air from Tuesday’s close:
“The big story for the day that the talking heads failed to mention was the Russell 2000 which was up 10 points, or 1.2%, and closed at 822. The move above 820 was super bullish and gets 830 back in play which was last seen on May 1. The small-caps traded to a high of 823.77 after testing 807 in the morning.”
We mentioned in our Weekly Wrap the charts were bullish for this week and that the Wall Street pros could be forced to buy stocks after coming back from vacation if there was a rally to resistance and a flood of buying. Bingo.
Of course, we gave you an early clue on Wednesday there was a strong bid in the market but with everyone all of a sudden rushing to one side of the boat we now have to be careful over the short-term. While there may be a continued rally, yesterday felt a little like a bullish capitulation day and Germany still has to approve the ECB’s plans next week.
Futures are showing a positive open despite a worse-than-expected Nonfarm Payrolls number which we will cover this afternoon. Dow futures are up 22 points to 13,297 while the S&P futures are higher by 3 ticks to 1,434. Nasdaq 100 futures are down a half-point to 2,825.
Subscribers, check the Members Area for the updates.
Tags: option trading strategies, options trading, stock options consultant, stock trading advisors
Posted in European Union (EU), Market Analysis, Market Commentary, Sectors | Comments Off
Tuesday, September 4th, 2012
9:00am (EST)
“The market has another week of August before September rolls around and it is usually the most bearish month of the year according to the history books. August also has some bearishness to it but so far the market is up for the month. Last week’s charts for the major indexes and the VIX showed an almost certain test to the 52-week highs and while the S&P 500 technically cleared this level, there was no “fluff” to new highs.
A pullback following a test of the 52-week high is a normal market or stock reaction. The current market is so technical and is falling right on the support and resistance lines we have outlined that we should get a really good read on a possible breakout or breakdown. We went on record last week and said the market could move 5% in September and 10% by year-end up or down depending on the headlines.
The targets we gave were Dow 14,000 or 12,600 in September followed by 14,500-14,600 or 12,000 by year-end. The S&P could be at 1,500 or 1,350 next month which would lead to 1,550 or 1,275 by Thanksgiving/ Christmas. The Nasdaq could push 3,225-3,250 or 2,925-2,900 in September and then 3,375-3,400 or 2,800-2,775 on continued strength or weakness.
There will be a ton of speculation on what Ben Bernanke might or might not do or say this Friday and over the weekend when the central bankers get together in Jackson Hole. The zombies still seem split on if another round of quantitative easing will really work and we have said how the Fed only has one bullet left.
People seem to forget that extending “Operation Twist” and the extended bond buying before that by the Fed was actually QE3 and QE4 so any new stimulus by our count would be QE5. Nothing is working and the comments from James Bullard last Thursday, a member of the FOMC, rehashed how little impact these programs have had. Yes, the first QE worked well most would agree but the real problem is the world governments want growth but growth is slowing and consumers are cutting back.
Perhaps a “saving of the euro” and another round of QE will take the market to new highs but there are so many storm clouds ahead that it is imperative we keep our eyes on the road and our hands upon the wheel. We will continue to roll with the bulls and have a real good time but be ready for a trend change if Big Ben lets the market down and Europe kicks the can off the road and into a ditch.” (from 8/26/2012 Weekly Wrap/ Monday Morning Outlook)…
The bears had the weekly edge heading into Friday’s “Black Hole” as the Dow was down 158 points; the S&P 500 a dirty dozen; and the Nasdaq was off by a hand of blackjack. The support targets we gave last week held like a rock and Friday’s rebound was a direct result of Ben Bernanke promising more quantitative easing. Although it wasn’t enough to win the week, the bulls won August and could have a September to remember if Europe delivers some good news this week. (continued…)
********************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Together, we are 121-36 for 2012 which is a 77% win rate for all of our trade recommendations.
Our list of winners also include+576% on GMCR,+475% on AXP, +292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few.
Our average trade recommendation usually last 3 weeks or less and we have closed some trades in as little as 24 hours. We target triple-digit returns for all of our option picks for the Daily and double-digit returns for the Weekly Wrap. We are excited about the back half of the year and a possible break out of the recent trading range.
If you are not yet a subscriber, come see why jaws are dropping for those who follow Wall Street and options trading.
Tags: AFL, AXP, blue-chip stocks, chicken option trade, chicken trade, fslr, GMCR options, momentum, momentum options, MSFT, option mentoring, stock options trading advisors, straddle option trade
Posted in European Union (EU), Market Analysis, Market Commentary, Option Trades | Comments Off
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IMF Lowers Global Growth, Bears Bite
Tuesday, October 9th, 2012
12:35pm (EST)
The market is treading water today following comments from the International Monetary Fund (IMF) after they cut their forecasts for global growth and warned of a world-wide slowdown. More importantly, they believe France, Spain, Greece and several other Eurozone countries won’t meet their budget-deficit targets they have agreed to.
The bulls brushed off the news at the open and tried to push positive territory but Tech has been weak and the chaos in Greece is weighing on the indexes as well. Economic news will pick up starting tomorrow and the nonfarm payrolls report is still being questioned. With jobless claims coming up on Thursday, Wall Street will be looking for clues on why the rate dropped from 8.1% to 7.8%. Perhaps more people are selling items on eBay (EBAY, $46.74, down $1.18). (read more…)
**********************
If you are not a subscriber but would like to read more, please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing tremendously well for 2012.
Since mid-August, we have closed 21-out-of-23 winning recommendations. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 135-45 (76% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Here are some more winners so far this year: +576% on GMCR,+475% on AXP, +292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few.
Our average trade recommendation usually last 3 weeks or less and we have closed some trades in as little as 24 hours. We target triple-digit returns for all of our option picks for the Daily and double-digit returns for the Weekly Wrap. We are excited about the last quarter of the year.
If you are not yet a subscriber, come see why jaws are dropping for those who follow Wall Street and options trading.
Posted in Economic News, European Union (EU), Market Analysis, Market Commentary | Comments Off