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Tuesday, March 27th, 2012
9:00am (EST)
The pros will tell you one of the first rules of trading is “don’t fight the Fed”. In other words, when the Fed is pumping money into the “system”, the market usually goes up. Ben Bernanke’s is making sure of that.
Wall Street rallied on Monday after comments made by the Fed Chairman saying supportive monetary policies would remain in place and that another round of quantitative easing could be a possible. Bernanke said the U.S. economy would need to grow more rapidly to produce enough jobs to further bring down the unemployment rate.
This spurred a huge relief rally following last week’s slight pullback as the bulls reclaimed resistance.
The Dow jumped 161 points, or 1.2%, to finish at 13,241. The blue-chips went out near their high and easily cleared the 13,200 level.
The S&P 500 soared 19 points, or 1.4%, to settle at 1,416. The index reclaimed the 1,400 level and closed above last week’s 52-week high of 1,414 which gets 1,425-1,450 back into the mix.
The Nasdaq surged double-nickels (55 points), or 1.8%, to end at 3,122. Tech also closed at its peak and is less than 1% away from our near-term target of 3,250.
The Russell 2000 zoomed 16 points, or nearly 2%, to close at 846. The S&P Volatility Index ($VIX, 14.26, down 0.56) fell 4% while gold and silver rebounded. Gold closed at $1,688 an ounce, up $25, while silver added 60 cents to end $32.76 an ounce.
Futures are showing a slow start as we head to press and look like this: Dow (-9), S&P 500 (-2), Nasdaq (-1). We have a NEW TRADE we are releasing this morning and we are going to try to get into the options at the open using limit orders. Subscribers, pay close attention to the trade instructions and be sure to check the Hard Stops for some of our current trades which moved up as we lock in further gains.
Tags: Ben Bernanke comments, gold silver prices, VIX
Posted in Gold, Hot Stocks, Market Analysis | Comments Off
Thursday, March 15th, 2012
12:45pm (EST)
We have been super busy today but the last 48 hours are what makes option trading so lucrative.
As option traders, profits can come in a hurry and after putting our name on the line and calling for another leg higher in the market BEFORE the start of trading Monday, well, let’s just say it feels good to prove those Wall Street pros wrong, again.
We said over the weekend that last Tuesday’s 1% pullback flushed out the weak hands and the 5-week trading range we had been in was about to make a big move. The “selloff” merely stretched support and we have clearly shown all of this in our chart work over the past few weeks. The break above resistance this past Tuesday has been a goldmine for us although gold itself continues to take a pounding.
Speaking of which, we have never been big buyers of gold but it looks like investors would be safe with buying quarter positions at current levels. Gold is currently up $4 to $1,647 an ounce but could dip to $1,400-$1,450 if it gets ugly. This would be an overshoot of support but we are using the weakness to start quarter positions in silver. Silver is down to $32.33 an ounce but is up 15 cents today. In 2 years, silver will easily be above $40, possibly $50. If it silver goes lower from here, we will buy another quarter position so start small just in case.
As far the market, trading has been choppy but as we head into the second half session the bulls are adding to this week’s gains.
The Dow is up 41 points to 13,235 while the S&P is higher by 8 points to 1,402. The Nasdaq is showing a 17 point pop and is at 3,057.
Our subscribers have more profits to take as our Hard Stop for Pepsico (PEP, $64.08, up $0.02) has been triggered today. This call option trade has made us 50% in just over a week but today’s slight pullback in the morning knocked us out of the trade. We also now have a 400% winner on our hands with American Express (AXP, $56.64, up $0.49) so we are locking up another quarter position of profits.
We have so much more to cover inside our Members Area with our current trades so let’s go see where we things are at.
The profits this week have been enormous and we are giddy as we see a great opportunity over the next 3 months to make even juicier profits. We have been saying since last October that this would be one of the BEST times ever to trade the market and we continue to feel that way. In fact, 2012 could be one of our biggest year ever for profits!
Subscribers, check the Members Area for the latest updates and we will be back in the morning with a full report.
Tags: AXP, Gold prices, PEP, silver
Posted in Gold, Market Analysis, Market Commentary, Rick's Account | 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
Friday, May 6th, 2011
1:30pm (EST)
The bulls used their lifeline this morning on Who Wants to be a Millionaire as they called up the Labor Department and asked them for a favor. The question of the week came down to the nonfarm payroll numbers and the bulls were looking for an answer north of 200,000. They got it after hearing corporate America went on the biggest hiring spree in five years.
In a pleasant surprise, the Labor Department reported that the private sector added 268,000 jobs for the month while at the same time we got some of the zombies off the government’s payroll. Overall, the economy added a total of 244,000 jobs last month, which was well ahead of estimates for 185,000 jobs that analysts had predicted. Even better, it was the third straight month that featured an increase of more than 200,000 jobs.
The unemployment rate did rise slightly to 9%, up from 8.8%, but was due to more people looking for jobs which is also a good sign.
As a result, the market soared on the news as the bulls take a turn at testing resistance which was prior support. So let’s see where we are at as we head into next week.
The Dow is up 60 points to 12,645 but has traded up to 12,759. We said to watch the 12,800 level on the way back up so this area will be important to overcome if the bulls want to push Dow 13,000.
The S&P is higher by 6 points to 1,341 and has traded up to 1,354. Once again, the bulls face a major hurdle at these levels but if 1,350 is cleared into the close, the bulls will be looking for a pop up to 1,375 next week.
The Nasdaq is showing a 19 point gain and is at 2,834. The 2,850 level is also key on if the rally can be sustained as this area has been a major headache for the bulls. The index touched 2,859, intraday.
Oil is down slightly again today after tanking nearly 10% yesterday. Black gold closed below $100 a barrel for the first time since mid-March and is currently at $99.02 a barrel, down 72 cents.
Silver has gotten crushed all week, including Thursday’s 8% selloff, and is down $1.38 to $34.76 an ounce. We played the silver trade a few months ago but have sat out the recent volatility despite great conditions for strangle trades. We mentioned silver traded near $50 last week and is down $15, or 30%, off its highs. It has been the biggest weekly decline for silver since 1975.
And finally, gold is at $1,483 an ounce, up $1.60 for the day.
It’s been a rough week for the bulls but we had penciled in the pullback which is healthy for this market. Today we are getting a bounce.
We aren’t sure how much selling pressure will come next week but we do know that we are getting a nice setup right now to play the next major move in the market. There will be clear signs on if we are headed for a correction or if this week and next week represent good buying opportunities.
The S&P 500 Volatility Index (^VIX, 18.14, down 0.06) traded down to 14-and-change last week which is where we have been saying to start looking for a pullback. We thought there could be a dip down to 13 but we were a day off as this index has been rising all week and gauges fear in the market place.
For you are a new subscriber who may not know, the VIX rises when the market falls and vice-versa. A rising VIX means the market is nervous and favors the bears while a falling VIX is good for the bulls. Usually, a reading under 20 indicates confidence and calm while a reading above 30 indicates fear and panic.
We will be back Sunday night with our Weekly Wrap as we have 2 more new companies we will be profiling. This publication is for those of you who like to buy stocks but also want some exposure to options. Our portfolio is based on recommendations we feel will easily make you monthly double-digit returns and all 10 of our trades are up for the year. We try to find undervalued, or momentum stocks, that are good candidates for the portfolio to use with our covered call strategy which reduces our cost basis.
If you are serious about building a long-term well defined portfolio that is a little less risky than trading options outright, then this publication is for you. The Weekly Wrap also profiles earnings every week and we highlight companies in bold that could see their share prices move 5%-10% or more after announcing.
We also profile some strangle and straddle trades from time-to-time in our Weekly Wrap which is quickly becoming the fastest growing covered call newsletter on the internet.
We are going to run a special this weekend for our Weekly Wrap because we want to see you Sunday night. So, for those of you who want a deal, here it is. If you sign-up for a 6-month subscription to our Weekly Wrap publication this weekend, we will add 6-months at no charge.
Have a great weekend everyone and rest up for next week which should be exciting. We plan to be pretty active with our trades next week…
Posted in Gold, Market Commentary, VIX | Comments Off
Tuesday, February 15th, 2011
12:40pm (EST)
The bears have gotten a little breakfast this morning as they have taken a small bite out of the market but the bulls look like they want some lunch. The major averages have traded on the south-side of the border after a disappointing Retail Sales figure but a better-than-expected production number has given the bulls hope.
Parts of the U.S. were hit with heavy snow but shoppers did their best to get out. The Commerce Department reported total retail sales rose 0.3%, after a 0.5% pop in December, and advanced for the seventh straight month. However, the suit-and-ties had expected an increase of 0.6%.
Elsewhere, Business Inventories increased by 0.8% in January after a 0.4% advance in December which was good news while the NAHB Housing Market Index was flat.
Gold is up today, along with silver, and both metals have broken through key resistance levels after lagging the market for a month. Gold is higher by $8 to $1,373 an ounce at while silver is up $0.14 to $30.68 an ounce. Gold’s break above $1,375 and silver’s jump past $30.50 are worth noting because we are in a silver trade.
We said a few weeks ago these two metals were holding their 200-day moving averages and we went long an option trade on silver at the beginning of February. Of course, we can’t tell you which stock we played options on unless you are a subscriber but we see further gains for both gold and silver.
Despite the Negative Nancy’s, today’s action isn’t too bad and we actually have an alert for one of our trades. We mentioned this morning we would be closing the other half of one of our trades, and, after pushing it for another day and into the last week of February option expiration week, we have decided to close the trade for a 25% return. We were hoping for a little bigger pop but anytime you can make 25% in a month, there is no reason to complain.
As we head to press the market is off its lows. The Dow is down 40 points to 12,229 while the S&P 500 is off by 4 points to 1,328. The Nasdaq is lower by 9 points to 2,808.
As usual, we have a lot to cover inside. Subscribers, check the Members Area for the updates. We will be back in the morning and we may have a HUGE trade for you on Wednesday. One that could return 10 times your money. Seriously.
Tags: best option trader, best trading signals, call options, chicken trade, Covered Calls, financial options advice, momentum options, Momentum stocks, option mentoring, option signals, option trading, options broker, options newsletter, put options, stock broker, strangle option trade, winning option trades
Posted in Gold, Market Commentary | Comments Off
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Don’t Fight the Fed
Tuesday, March 27th, 2012
9:00am (EST)
The pros will tell you one of the first rules of trading is “don’t fight the Fed”. In other words, when the Fed is pumping money into the “system”, the market usually goes up. Ben Bernanke’s is making sure of that.
Wall Street rallied on Monday after comments made by the Fed Chairman saying supportive monetary policies would remain in place and that another round of quantitative easing could be a possible. Bernanke said the U.S. economy would need to grow more rapidly to produce enough jobs to further bring down the unemployment rate.
This spurred a huge relief rally following last week’s slight pullback as the bulls reclaimed resistance.
The Dow jumped 161 points, or 1.2%, to finish at 13,241. The blue-chips went out near their high and easily cleared the 13,200 level.
The S&P 500 soared 19 points, or 1.4%, to settle at 1,416. The index reclaimed the 1,400 level and closed above last week’s 52-week high of 1,414 which gets 1,425-1,450 back into the mix.
The Nasdaq surged double-nickels (55 points), or 1.8%, to end at 3,122. Tech also closed at its peak and is less than 1% away from our near-term target of 3,250.
The Russell 2000 zoomed 16 points, or nearly 2%, to close at 846. The S&P Volatility Index ($VIX, 14.26, down 0.56) fell 4% while gold and silver rebounded. Gold closed at $1,688 an ounce, up $25, while silver added 60 cents to end $32.76 an ounce.
Futures are showing a slow start as we head to press and look like this: Dow (-9), S&P 500 (-2), Nasdaq (-1). We have a NEW TRADE we are releasing this morning and we are going to try to get into the options at the open using limit orders. Subscribers, pay close attention to the trade instructions and be sure to check the Hard Stops for some of our current trades which moved up as we lock in further gains.
Tags: Ben Bernanke comments, gold silver prices, VIX
Posted in Gold, Hot Stocks, Market Analysis | Comments Off