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Tuesday, February 14th, 2012
9:00am (EST)
The bulls recovered most of Friday’s drubbing with a strong session on Monday as the market overlooked the uprising in Greece and cheered a proposed bailout which could get approved by Wednesday.
Of course, with so much money-printing, bond swapping, and reshuffling funds here and there, it all boils down to an orderly default for Greece sooner or later and that is what the market is seeing.
The Dow gained 73 points, or 0.6%, to end at 12,874. The blue-chips reached a high of 12,887 but fell short of last week’s 52-week high of 12,924. The bulls have been throwing darts at Dow 13,000 and are still looking for the “eye”. Get it?
The S&P 500 added 9 points, or 0.7%, to finish at 1,351. The index kissed a high of 1,353 and the bulls will be trying for the second time to hold our 1,350 close which we said could lead to 1,375-1,400 over the near-term. The bears are still trying to get under 1,330-1,325.
The Nasdaq advanced 28 points, or 1%, and settled at 2,931. Tech set another 52-week high yesterday by reaching 2,733 and the close was higher than last week’s peak at 2,930. We mentioned back in November the Nasdaq could swell to 3,000 before taking a breather and we are only 2% away. A 2% move the other way would put the index back at 2,875 and we mentioned a “gap down” on the chart (see notes from Sunday night’s Weekly Wrap or yesterday’s Daily) would lead to 2,850 which is a 3% move.
The Financial stocks showed some muscle on Monday as Bank of America (BAC, $8.25, up $0.18) and JP Morgan Chase (JPM, $38.30, up $0.69) posted 2% gains, on average.
Isn’t it funny how nobody on Wall Street likes the Financial sector? In fact, they haven’t liked it for months and they told you to steer clear of the Banks while they went away on vacation before Christmas. When they came back in January the suit-and-ties were still wishy-washy.
Not us, we were like Captain Stubing on the Love Boat and were giddy that Bank of America was at $5.
We were pounding the table in our Weekly Wrap for our subscribers to pick up shares right before Christmas at $5.35 and Bank of America would be at double-digits sometime in 2012. In mid-January, we told our subscribers to pick up more at $6.75. We will likely get “called away” from our positions if current prices hold up for nice double-digit gains in March and April as the chart shows little resistance to $10.
We’re pretty sure if Bank of America ever drops to $5 again those same knuckleheads will tell you it’s time to get in. It appears they may not get that chance though. They might at $7, but not at $5.
As we head to press, futures are showing a lower open and look like this; Dow (-21), S&P 500 (-4), Nasdaq (-6). We may be active today with some of our current trades and there are a couple possible plays on our Watch List we are starting to like. We have included a chart for one of them this morning to show you the recent breakout.
Subscribers, check the Members Area for the updates.
Tags: bac, blue-chip stocks
Posted in Financial Stocks, Market Analysis, Market Commentary | Comments Off
Thursday, February 9th, 2012
1:05pm (EST)
The bulls and bears have traded blows for much of the session as the market has had a bevy of headlines to deal with today. The indexes have traded in a tight range once again and got off to good start after Initial Claims came in at 358,000 versus expectations for a print of 370,000. Continuing Claims came in at 3.5 million which pretty much matched expectations.
Shortly after the open, there was news out that Greece and the European Union have agreed to a level of budget cuts that will give the country another bailout. This will help Greece with their debt payments next month but we doubt the drama is over as the country is expecting riots this weekend.
The lack of details though has caused the market to pull back from its highs but the bulls are holding court as we head into the second half of trading.
Elsewhere, Obama just announced the government has reached a $26 billion settlement over shady foreclosure practices with the five largest mortgage service providers. Ally Financial, Bank of America (BAC, $8.23, up $0.10), Citigroup (C, $34.08, down $0.15), JPMorgan Chase (JPM, $38.00, down $0.30) and Wells Fargo (WFC, $30.43, down $0.23) are all trading slightly lower with the exception being BAC.
As we head to press, the Dow is up 27 points to 12,910 while the S&P 500 is higher by 3 points to 1,353. The Nasdaq is showing a gain of 10 points and is at 2,926.
We currently have a Bank of America call option trade that we entered on Monday which is nearing a 50% return so let’s go lock-in some more profits! Subscribers, check the Members Area for the details and we will be back in the morning with our next update.
Tags: bac, Bank of America call options, c, JPM, wfc
Posted in Financial Stocks, Market Analysis, Market Commentary | 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, 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, October 4th, 2011
9:00am (EST)
We mentioned yesterday we were excited about the market going lower because A) it proved our homework back in August was about to pay off and B) our subscribers have made a wheelbarrow full of money over the past few weeks following our option recommendations. Of course, 2011 has been a hard market to trade considering all the major events that have taken place and the recent 8-week trading range has been just as much of a headache. However, one thing our students know is that the longer a market, or stock, stays in at trading range the bigger the breakout or breakdown becomes.
We knew going into last week the bulls had a lot of work to do and once they failed to clear short-term resistance, we knew the trading range was about to crack – to the downside. We also got a hard date on when Greece’s fate would be determined which also lead us to believe there would be more anxiety as push comes to shove. Yesterday’s technical damage was exactly what we wanted to see, as the decline pushed the major averages to new 52-week closing lows.
Even good news here at home continues to take a back seat to Europe’s woes, as Greece admitted that it does not expect to hit its deficit target. Also weighing on the market was the data from overseas which pointed to a slowdown in manufacturing.
Bankruptcy rumors spooked Wall Street and Airlines stocks as AMR (AMR, $1.98, down $0.98) fell 33% on water-cooler talk they might need to higher some Chapter 11 lawyers. In the company’s defense, they did state they were not seeking a prepackaged bankruptcy but often times where there’s smoke, there’s fire. United Continental Holdings (UAL, $17.11, down $2.27) gave back 12% while JetBlue Airways (JBLU, $3.49, down $0.60) tumbled 15%. We saw some cracks in the sector back in August but we failed to give our UAL put option trade enough time to take advantage of yesterday’s debacle.
Elsewhere, Financial stocks took a beating as they suffered the worst loss of any major sector by falling 4.5%. Bank of America (BAC, $5.53, down $0.59), Morgan Stanley (MS, $12.47, down $1.04), Goldman Sachs (GS, $90.08, down $4.47) and JPMorgan Chase (JPM, $28.65, down $1.47) all hit new bottoms and could go even lower.
We have been warning our readers of Goldman’s troubles and we have said BAC was going to $5 but neither looks like a buy quite yet. In fact, we now have a triple-digit profit (+145%) in our Goldman Sachs put option from last week and all we have to do now is protect our gains. In pre-market action, Golden Slacks is trading in the $80’s.
As far as the market, let’s go over the numbers and more downside targets because it’s going to get worse…
The Dow dropped 258 points, or 2.4%, and ended at 10,655. There was strong support at 10,800 (which is now resistance) but this level acted like a wet paper towel trying to stop a cannonball…
*****************************************
If you are not a subscriber but would like to read more and check our chart work for the indexes and our current trades, please click here. Futures are pointing towards another nasty open which is good news for us. Dow futures are lower by 96 points to 10,443 while the S&P futures are off by 11 points to 1,075. Nasdaq 100 futures are down 16 points to 2,050. We have quite a few trades that are up triple-digits so we have set HARD STOPS to protect our profits. However, with the futures tanking, it looks like we could see continued gains for our trades.
Tags: About options trading, Airline stocks, BAC puts, Goldman Sachs, JPMorgan Chase, 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 Financial Stocks | Comments Off
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Tech, Financial Stocks Still Showing Strength
Tuesday, February 14th, 2012
9:00am (EST)
The bulls recovered most of Friday’s drubbing with a strong session on Monday as the market overlooked the uprising in Greece and cheered a proposed bailout which could get approved by Wednesday.
Of course, with so much money-printing, bond swapping, and reshuffling funds here and there, it all boils down to an orderly default for Greece sooner or later and that is what the market is seeing.
The Dow gained 73 points, or 0.6%, to end at 12,874. The blue-chips reached a high of 12,887 but fell short of last week’s 52-week high of 12,924. The bulls have been throwing darts at Dow 13,000 and are still looking for the “eye”. Get it?
The S&P 500 added 9 points, or 0.7%, to finish at 1,351. The index kissed a high of 1,353 and the bulls will be trying for the second time to hold our 1,350 close which we said could lead to 1,375-1,400 over the near-term. The bears are still trying to get under 1,330-1,325.
The Nasdaq advanced 28 points, or 1%, and settled at 2,931. Tech set another 52-week high yesterday by reaching 2,733 and the close was higher than last week’s peak at 2,930. We mentioned back in November the Nasdaq could swell to 3,000 before taking a breather and we are only 2% away. A 2% move the other way would put the index back at 2,875 and we mentioned a “gap down” on the chart (see notes from Sunday night’s Weekly Wrap or yesterday’s Daily) would lead to 2,850 which is a 3% move.
The Financial stocks showed some muscle on Monday as Bank of America (BAC, $8.25, up $0.18) and JP Morgan Chase (JPM, $38.30, up $0.69) posted 2% gains, on average.
Isn’t it funny how nobody on Wall Street likes the Financial sector? In fact, they haven’t liked it for months and they told you to steer clear of the Banks while they went away on vacation before Christmas. When they came back in January the suit-and-ties were still wishy-washy.
Not us, we were like Captain Stubing on the Love Boat and were giddy that Bank of America was at $5.
We were pounding the table in our Weekly Wrap for our subscribers to pick up shares right before Christmas at $5.35 and Bank of America would be at double-digits sometime in 2012. In mid-January, we told our subscribers to pick up more at $6.75. We will likely get “called away” from our positions if current prices hold up for nice double-digit gains in March and April as the chart shows little resistance to $10.
We’re pretty sure if Bank of America ever drops to $5 again those same knuckleheads will tell you it’s time to get in. It appears they may not get that chance though. They might at $7, but not at $5.
As we head to press, futures are showing a lower open and look like this; Dow (-21), S&P 500 (-4), Nasdaq (-6). We may be active today with some of our current trades and there are a couple possible plays on our Watch List we are starting to like. We have included a chart for one of them this morning to show you the recent breakout.
Subscribers, check the Members Area for the updates.
Tags: bac, blue-chip stocks
Posted in Financial Stocks, Market Analysis, Market Commentary | Comments Off