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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
Thursday, August 11th, 2011
9:05am (EST)
The theme on Wall Street continues to be volatility and Wednesday it was the bears’ turn to go on offense as they punished the bulls all day and took back most of Tuesday’s 5% gains. After trying to stabilize, the selloff picked up speed in the final hour of trading and we said once the European markets closed things could get interesting.
Water-cooler talk that France might be in danger of losing its triple A credit rating caused some panic despite S&P and Moody’s (MCO, $29.15, down $2.52) saying that was not the case…for now. Despite the reassurance, France’s stock market fell over 5% yesterday with their Financial stocks leading the leg down. Ditto here at home as many of the U.S. banks have Europe’s debt on their books as well.
Naturally, a lot of investors stayed with Gold which set another record high, closing at nearly $1,800 an ounce. The yellow metal spent most of the afternoon session pulling back from this level but still managed to close at $1784 an O. Silver also jumped and closed just shy of the $40 level at $39.37 an ounce.
As far as the numbers, we gave you three levels to watch yesterday for the major indexes and all of them were in play going into the close.
The Dow got hammered for 519 points, or 4.6%, to finish at 11,719. The index tested a low 10,688 and we mentioned a close below 10,800 would favor the bears and the next level they will target is Dow 10,600-10,500. If these levels fall then we firmly believe 10K will come into play over the next few weeks. Of course, the bulls will try to reclaim the 11,000 level which will act as resistance followed by 11,200.
The S&P got whipped for 51 points, or 4.4%, to end at 1,120. The low for the session was 1,118 and we penciled in 1,125 as the over/under. The close brings 1,100 back into play with the possibility of 1,050 coming into the picture if the bears keep pushing. The index traded to a high of 1,171 and short-term resistance remains at 1,150-1,175.
The Nasdaq dropped over 100 points, or 4.1%, to settle at 2,381. We mentioned the 2,400 area as key support, then 2,350 and Tech traded to a low of 2,378. If the latter level doesn’t hold, then 2,200 could be on the horizon. To the upside, the bulls will target 2,400-2,450 before getting cocky.
Futures were pointing towards a higher open when we hit the sack last night as the Dow futures were up well over triple-digits, or 1%, but were down triple-digits ahead of the jobs report. Folks, the Dow futures markets are making incredible 300+ point swings overnight. Europe’s debt and the French Banks took the overseas market lower but we are looking at a slightly positive open.
Dow futures were up 30 and are flat as we head towards the opening bell, S&P futures are down 2 points. The Nasdaq futures are up 3 points. It should be another whacky day on Wall Street. Subscribers, check 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 Futures, Market Analysis, Market Commentary | Comments Off
Sunday, August 7th, 2011
7:00pm (EST)
We wanted to give everyone a quick update on the futures market. As you probably may have heard by now, Standard & Poor cut America’s triple AAA credit rating on Friday night, after the market closed.
Futures are already pointing towards a nasty Monday and we will be releasing our Weekly Wrap shortly. In it, we go over critical support levels for the Dow, S&P 500 and the Nasdaq; earnings; and what lies ahead for the week. We will also be profiling two stocks that will look good after the market settles down.
We also have some Europe news that will be in the mix as well.
We mentioned last week do NOT be afraid to make money when the market is tanking and people are panicking. And at some point, there will be a rebound but it looks like we can continue to play the downside. It may take weeks, or months, but as option traders we want volatility and we told you this would be one of the best times ever to play the market.
As we head to press, Dow futures are down 264 points to 11,138 while the S&P 500 futures are lower by 28 points to 1,170. Nasdaq futures are off by 47 points and are at 2,140. If things hold up, Wall Street is looking at a 2% drop, maybe more, at the open on Monday morning.
Tags: Dow Futures, Nasdaq futures, S&P 500 futures
Posted in Futures | 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