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Wednesday, April 17th, 2013
9:00am (EST)
The bulls have been weak on Monday’s and strong on Tuesday’s as they made it 14 in a row yesterday. The recovery to prior support levels was encouraging for the major indexes but Gold continued its slide following a back test to $1,400.
The Dow zoomed 157 points, or 1.1%, to close at 14,756. The close above 14,700 was reassuring and the high was 14,761. Despite all the gloom and doom, the blue-chips are just 1% away from historic highs again. The 14,600 level is still shaky support.
The S&P 500 added a double-deuce (22 points), or 1.4%, to settle at 1,574.57. The bulls did clear the 1,575 level and the close was close enough for government work. However, a dip below 1,560 or a close below 1,550 still needs to be watched as warning signs further weakness is ahead.
The Nasdaq jumped 48 points, or 1.5%, to finish at 3,264. Tech was able to clear the 3,250 level again and reached 3,265 but the bulls will need to clear 3,275 on the close if they have ambitions on reaching 3,300 again. If 3,250 fails again, the 3,200 level will likely come into play again.
The Russell 2000 popped a sweet 16, or 1.8%, to end at 923 and he close above 920 again was bullish. Meanwhile, the S&P Volatility Index ($VIX, 13.96, down $3.31) fell nearly 20% and close back below 15. A break below 13.50 would be bullish for a continuing rally.
We have added some possible new trades to the Watch List this morning as we get ready for our next batch of trades! These option trades could become official recommendations at any time so stay ready. If they do take action this morning, we will send out a Trade Alert.
As we head to press, futures looare showing another rough open: Dow (-88); S&P 500 (-10), Nasdaq (-19). Subscribers, check the Members Area for the updates.
Posted in Gold, Market Analysis, Market Commentary | Comments Off
Tuesday, March 12th, 2013
12:30pm (EST)
We mentioned this morning the race to 1,600 was on and with today’s $14 jump to $1,592, Gold is closer to ringing the bell first than the S&P 500 is.
The recent trading sessions have been sluggish in the morning with strength coming in the afternoon and the indexes closing near their highs.
We aren’t sure if today’s action will turn out the same way because the drift lower feels like it could stick but we are expecting a higher week for the market.
Although we are close to adding new trades, we wanted to see how this morning’s open played out before taking new positions. We also have 4 trades in the mix that will be closed by Friday – win, lose, or draw so we are also waiting for these trades to clear the books.
We will have 10 open positions in play afterwards with April and June expiration dates. The April optIons have 38 days before expiration while the June options have 101 days before they expire.
The Dow is off 10 points to 14,437 while the S&P 500 is lower by 4 points to 1,551. The Nasdaq is down 17 points to 3,235.
Subscribers, check the Members Area for the current trade updates and if we see an opportunity to add a new trade this afternoon, we will send out a Trade Alert.
Posted in Gold | Comments Off
Tuesday, March 12th, 2013
9:00am (EST)
There have been a few recent double-digit win streaks in the sporting world that has captivated the nation’s attention but the ones we like to watch involve the market. While we hope not to jinx things, the S&P 500 is on a 7-session streak while the Dow is one behind at 6 following Monday’s pop to fresh highs.
We mentioned the action was slow at first as the bears tried to make some noise but the slight dip was bought as the indexes moved higher throughout the second half of trading. Although the small-caps were a scratch as they just made it above the breakeven line before the close, all 4 major indexes finished higher to start the week for the second straight Monday.
The Dow gained 50 points, or 0.4%, to settle at 14,447. The blue-chips traded up to 14,448 and are on track to push 14,500 this week. Yesterday’s low was 14,373.
The S&P 500 added 5 points, or 0.3%, to end at 1,556 and at it high for the day. The index tested 1,547 after the open but is now less than 10 points away from its October 2007 closing high of 1,564. The intraday high for the S&P is 1,576.
The Nasdaq jumped over 8 points, or 0.3%, to close at 3,252. Tech kissed a low of 3,233 but held 3,225 and the close above 3,250 was money.
The Russell 2000 struggled but gained a hundredth of a point, or 0.01, to finish at 942.51 while the S&P 500 Volatility Index ($VIX, 11.56, down 1.03) fell 8% to 52-week lows after closing below 12.
One question we have pondered over the past few weeks is when will the S&P 500 pass the price of Gold? We aren’t sure on the exact date but we do expect it to happen over the next few weeks.
We mentioned this weekend we expect the index to trip 1,600 before a possible pullback but we aren’t so sure about Gold. The yellow metal closed at $1,578/ ounce yesterday and is struggling to hold the $1,580 level. We correctly predicted Gold’s back test to $1,550 in February but if resistance holds and there is another leg lower, there could be a test to $1,525-$1,475.
As we head to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx).
We may add 2 more New Trades this morning after the open so be on the lookout if we take action on the first two candidates on our Watch List. Subscribers, check the Members Area for the updates.
Posted in Gold, Hot Stocks, Market Analysis | Comments Off
Friday, September 14th, 2012
9:00am (EST)
The bulls were counting on the Federal Reserve to unleash another round of quantitative easing (QE) and got the hat trick after Ben Bernanke officially signed-off on QE3. We said on Wednesday that The Bernanke needed to overpromise and wow Wall Street which he did.
The Fed said it would purchase $40 billion of mortgage-backed securities a month in an effort to improve the on again, off again recovery in housing. The open-ended purchases were not expected because it means the Fed could continue this for a few years, until they are satisfied.
Over $120 brillion in securities would be purchased by year-end which would bring the Fed’s “money creation”, or printing press, to over $3 trillion since they began the process 4 years ago. Yet, unemployment has been above 8% the entire time.
The Dow zoomed 206 points, or 1.6%, to settle at 13,539. The blue-chips reached a peak of 13,573 and easily challenged our next resistance zone of 13,500-13,600. We have been saying since mid-August the Dow has a shot at 14,000 in September and yesterday’s Fed announcement could get us there.
The S&P 500 jumped 23 points, or 1.6%, to finish at 1,460. We have been calling for a print of 1,450 and yesterday’s high of 1,463 clears the way for a possible run to 1,500 this month.
The Nasdaq soared 41 points, or 1.3%, to end at 3,155. Tech traded to a high of 3,167 and is now on track to test our 3,250 target for September. The Russell 2000 was up 11 and closed at 856 while the S&P Volatility Index ($VIX, 14.05, down 1.75) dropped 11%.
Gold and silver surged as inflation fears sent the metals higher. Gold added $35 to close at $1,769 an ounce after reaching $1,775 intraday while silver gained $1.31 to finish at $34.68/ ounce.
Here were our thoughts in the Weekly Wrap on Sunday and in our Daily on Monday morning:
“Gold was up another $35 on Friday and closed at $1,737/ ounce. As you can see from our longer-term charts, our initial target on a rebound was $1,800 but given the velocity of the recent move, gold could trip $2,000 this year.
We said in July to add to your Silver positions at $26 by buying American Eagles. If you do not know how to do this, email our support team. We have been saying once $30 tripped, a quick push to $40 could come. Silver was up another buck on Friday and closed at $33.68/ ounce” (End)
Silver is up 30% since our late-July prediction and we sure hope everyone was buying Silver Eagles like we suggested.
We may have another busy day but we don’t mind as we have closed some Monster winners this week (pun intended). Futures are showing a higher open and look like this: Dow (+32); S&P 500 (+4); Nasdaq 100 (+9).
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 Gold, Market Analysis, Market Commentary | 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…)
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Posted in Economic News, European Union (EU), Gold, Market Analysis, Market Commentary | Comments Off
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Bulls Bounce Back, Futures Weak
Wednesday, April 17th, 2013
9:00am (EST)
The bulls have been weak on Monday’s and strong on Tuesday’s as they made it 14 in a row yesterday. The recovery to prior support levels was encouraging for the major indexes but Gold continued its slide following a back test to $1,400.
The Dow zoomed 157 points, or 1.1%, to close at 14,756. The close above 14,700 was reassuring and the high was 14,761. Despite all the gloom and doom, the blue-chips are just 1% away from historic highs again. The 14,600 level is still shaky support.
The S&P 500 added a double-deuce (22 points), or 1.4%, to settle at 1,574.57. The bulls did clear the 1,575 level and the close was close enough for government work. However, a dip below 1,560 or a close below 1,550 still needs to be watched as warning signs further weakness is ahead.
The Nasdaq jumped 48 points, or 1.5%, to finish at 3,264. Tech was able to clear the 3,250 level again and reached 3,265 but the bulls will need to clear 3,275 on the close if they have ambitions on reaching 3,300 again. If 3,250 fails again, the 3,200 level will likely come into play again.
The Russell 2000 popped a sweet 16, or 1.8%, to end at 923 and he close above 920 again was bullish. Meanwhile, the S&P Volatility Index ($VIX, 13.96, down $3.31) fell nearly 20% and close back below 15. A break below 13.50 would be bullish for a continuing rally.
We have added some possible new trades to the Watch List this morning as we get ready for our next batch of trades! These option trades could become official recommendations at any time so stay ready. If they do take action this morning, we will send out a Trade Alert.
As we head to press, futures looare showing another rough open: Dow (-88); S&P 500 (-10), Nasdaq (-19). Subscribers, check the Members Area for the updates.
Posted in Gold, Market Analysis, Market Commentary | Comments Off