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Google (GOOG) Beats Estimates, Shares Crack $600

Friday, July 20th, 2012

9:00am (EST)

The bulls won their third-straight session on Thursday and made another run at upper resistance levels but ran out of gas midday way through the session.  The surge during the first half of trading was enough to allow them to coast to victory as the bears never got it in second gear.  

The Dow added 35 points, or 0.3%, to finish at 12,943.  The blue-chips tested a high of 12,977 at lunchtime after dipping to a low of 12,889 shortly after the open.  The bulls made a push at 13,000 and if cleared it could be smooth sailing up to 13,200.  We mentioned yesterday if the bulls fail to clear this level by the weekend there could be a test back down to 12,600 over the near-term.

The S&P 500 popped 4 points, or 0.3%, to settle at 1,376.  We said a close above 1,375 would get 1,400 into play and yesterday’s high was 1,380.  The low was 1,371.  The 52-week high is 1,422 which was hit on the first trading day of April.

The Nasdaq led the way higher after jumping 23 points, or 0.8%, to close at 2,965.  Tech touched a top of 2,976 and is a little over 1% away from taking out the 3,000 level.  Unlike the Dow and S&P, the Nasdaq held green all day and above 2,950 which was bullish.

The Russell 2000 fell 3 points to finish at 802.  The small-caps traded to 808 and we said a close above 810 would be bullish but the negative close could be another clue the market is topping.  The S&P Volatility Index ($VIX, 15.45, down 0.71) fell another 4% and has reached our mid-teen target.  There is still a chance the VIX could push the low teens and that would mean the S&P 500 is at 52-week highs.  

After the close, Google (GOOG, $593.06, up $12.30) and Microsoft (MSFT, $30.67, up $0.22) came in with mixed results but shares of both companies got nice little pops in extended trading. 

Google beat estimates and had a huge beat on revenue by $70 million.  Microsoft posted its first ever quarterly loss after taking charges for its online division and an expensive, money losing acquisition.  However, Mr. Softie posted strong sales as revenue rose 4% and topped $18 billion for the quarter.  Google was trading above $600 when after-hours trading closed while Microsoft was above $31.  Both levels are holding before the bell.

You would think futures would have gotten a nice pop but they were weak all night.  Shortly after 1am (EST), Dow futures were down 33 while the Nasdaq futures were flat as a pancake.  They have gotten worse this morning as we head towards the opening bell and look like this: Dow (-66), S&P 500 (-9), Nasdaq (-8).

We have an important chart to show you this morning on a stock we have traded options on 4 times over the past few months.  All of the recommendations have been put options and have made our subscribers 172%, 144%, 29% and 6%.  Shares are right near resistance again so let’s go see what the chart looks like inside the Members Area.

Bulls Struggling at Resistance

Thursday, July 19th, 2012

12:35pm (EST)

The market got a slight bid at the open as the bulls added some fluff to yesterday’s gains but the action has been choppy as we head into the second half of trading.  Economic news favored the bears this morning which slowed the 2-day momentum and tomorrow’s July option expiration day could be tricky. 

Initial Claims rose 34,000 to 386,000 following last week’s drop of 24,000 to 352,000 but this was expected as the auto plant retooling winds down.  Continuing Claims rose by 1,000 to 3.314 million.  Existing Home Sales were a disaster, dropping 5.4% in June and well below expectations. The Philly Fed came in at -12.9, up from June’s negative reading of -16.6.  And finally, Leading Indicators fell 0.3% to 95.6 in June following a May reading of 95.9. 

We have talked about the recent 2+ month trading range which has seen both the bulls and bears push support and resistance with some fluff.  We have given you the price targets to watch for on all of the indexes to confirm a breakout or breakdown and while we thought there might be a slim chance the blue-chips tested 13,000 today, they haven’t.

International Business Machines (IBM, $195.75, up $7.75) is up 4% and has accounted for 53 positive Dow points but American Express (AXP, $56.43, down $1.86) (-17 Dow points), Wal-Mart Stores (WMT, $71.62, down $1.23) and Verizon (VZ, $44.88, down $1.01) have snuffed out half those gains and the other 26 Dow stocks are mixed.  

eBay (EBAY, $44.17, up $3.71), which should be a Dow component, is zooming 9% after reporting another sweet quarter on the heels of its PayPal unit.  We talked about earnings this week in the video we did for our trading course members on Sunday night.  The only possible trade we really liked was eBay as we said shares could surge past $40 based on the strength PayPal continues to show.

We should have taken it a step further and profiled the August 40 calls (EBAY120818C00040000, $4.20, up $2.10) which are up 100% today.  The July 40 calls (EBAY120721C00040000, $3.90, up $2.30) would have been super risky as they expire tomorrow but they are up 145% and have traded to a high of $4.45

*************************************    

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Bulls Push First Layer of Resistance

Tuesday, May 29th, 2012

12:25pm (EST)

Futures were trading higher Monday night as we prepared for Tuesday’s open and got progressively stronger before the bell.  The rest of the week, including today will be extremely busy with lots of juicy tidbits to digest.

China got the ball rolling after word spread they could start their own Cash for Clunkers program to help spur automobile sales.  This gave the overseas markets a lift which put Wall Street in a good mood.

Helping Tech today is word Apple (AAPL, $568.12, up $5.83) is in the early stages of producing a new television that would work with the internet and cloud computing.  We were just talking about how Apple [and Google (GOOG, $592.37, up $0.84)] needed to get off the mat as its stock has been languishing and this was good news.  We showed a chart for both stocks this morning as possible option plays down the road.

Facebook (FB, $29.76, down $2.15) has fallen below $30 and doesn’t seem like it wants to get up.  The options listed today and we will have more on this story in the coming days.  The WEEKLY options for Facebook will list Thursday so there will be a ton of ways to play this one.

The premiums are a little jacked liked we said they would be with implied volatility coming in above 50.  The Facebook June 30 puts (FB120616P00030000, $1.75, up $1.75) opened at $1.20 and have traded down to $1.  The quote looks a little funny because the options just listed but get ready for a possible new trade this week on Facebook after we see how shares trade over the next few days. 

Economic news is light today and May’s Consumer Confidence Index was a letdown after falling to 64.9 versus a print of 68.7 for April.  The bulls shook-off the bad news and maintained their momentum at first but as we head into the second half of trading, some of the bloom has come off the rose.

The Dow is up 72 points to 12,526 while the S&P 500 is higher by 7 points to 1,325.  The Nasdaq is higher by 11 points to 2,848.

We have action to take on one of our current call option trades that is showing a solid double-digit gain in a little over a week.  We want to protect profits in case today’s gains fade so let’s go check the tape.

Subscribers, please hit the Members Area for the latest updates.

Bulls Struggling to Hold Gains

Monday, April 16th, 2012

1:30pm (EST)

The market is mixed as we head into the second half of trading as the blue-chips are up while both the S&P 500 and Tech are trending lower.  Futures were pointing towards a nice pop at the open but the Nasdaq has been weak for much of the session after a positive open.  Apple (AAPL, $587.49, down $17.74) and Google (GOOG, $606.29, down $18.31) were leading the Tech sector lower, as both try to hold down the $600 level.

As far as economic news, Retail Sales rose 0.8% in the month of March.  Excluding autos and gasoline, the core reading was up 0.7%, versus forecasts for an increase of 0.5%.  The Empire Manufacturing Index came in at 6.56, which was well below expectations for a print of 18 while the Housing Market Index for April came in at 25, versus expectations for a reading of 29.  And finally, Business inventories were up 0.6% in February, matching expectations.

Citigroup (C, $34.07, up $0.66) is up 2% after reporting better-than-expected earnings but missing on sales.  The company reported a profit of $1.11 a share on revenue of $19.4 billion.  Wall Street was expecting $1 a share on revenue of $19.8 billion. 

As we head to press, the Dow is up 90 points to 12,939 while the S&P is up less than a point to 1,370.  The Nasdaq is down 21 points to 2,990.

One of our current trades was stopped out today.  Lululemon Athletica (LULU, $73.02, down $0.49) traded higher at the open and our Hard Stop was triggered.  We made a nice 25% return in under 2 weeks and we may be back to play this name again, soon.  Subscribers, check the Members Area for the updates.

Google (GOOG) Beats Estimates, Announces Stock-Split

Friday, April 13th, 2012

1:50pm (EST)

We remember watching an interview a few years ago with Google founders Larry Page and Sergey Brin who went on record and said they would never split the company’s stock.  They mentioned how Warren Buffett has never split Berkshire Hathaway’s (BRK.A, $119,276, down $897) stock and most Wall Street analysts will tell you stock-splits don’t really do anything but create more outstanding shares.

We guess the two heavyweights had a change of mind.

Although it’s not an “official” stock-split, Google did announce a stock “dividend” which it is calling a 2-for-1 stock-split after topping Wall Street’s estimates.  The company reported a profit of $10.08 a share versus estimates for $9.65 a share.  Revenue did miss by a smidge though, as the company came in at $8.14 billion versus calls for $8.15 billion. 

The split is designed to preserve the control of the company by its two co-founders and its corporate structure.  The newly created non-voting stock will trade on the Nasdaq but no immediate time table was given. 

If this is the case, they could do two classes of Google stock as GOOG.A and GOOG.B.  The “Baby Berk’s” are Berkshire Hathaway’s Class B shares (BRK.B, $79.39, down $0.67) so we would imagine Google will likely have the same deal and we will officially dub them the Baby Goog’s. 

We have one share of the Baby Berk’s on our office wall as a tribute to Mr. Buffett and we may add a Google “B” share whenever they come out.  Believe it or not, you can still get a stock certificate for many of the well-known companies and we like to collect one or two every year.  The artwork for some of America’s companies on a stock certificate is our way of collecting “art”.  (Go to OneShare.com to get a complete list.)

With the adaption of eBooks and an all digital world, there will come a day when the “stock certificate” will disappear so we thought we would collect some history before they too become extinct. 

As far as the market, the bears have taken control of the session and will likely when the week.

The Dow is down 68 points to 12,918 while the S&P is off by 11 points to 1,376.  The Nasdaq is lower by 34 points to 3,021.

We have a lot to cover in our Members Area as we are closing another winning trade which will make our 7th of the week and we are lowering our Hard Stop on another position that is profitable.   Subscribers, please pay careful attention to the trade instructions.

We will be back Sunday night with our Weekly Wrap and the chart work for each of our open positions.  Until then, have a great weekend, everyone!

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    Here are our biggest recommendations for 2013 so far: +367 on REGN call options +173% on BGFV call options +140 on SCTY call options +178 on SNE call options +128% on SNE call options

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    576% on GMCR put options;
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    and 292% on COF call options. We doubt any option newsletter performed as well as we did.

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    We had 19 triple-digit winners and 6 (70%+) on 115 trades

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    The portfolios can be found in the Members Area as well as past portfolios from 2008-2011. Overall, we are 621-273 on nearly 900 real-time recommendations that equals a success rate of 70%. This means, on average, 7-out-of-10 of our option trade recommendations make you money and we hope to have an even better success rate for 2013.

    If you are missing these juicy profits, come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2012 Track Records by sending us an email or filling out the box below.

Trader Comments:
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year of membership rather than the one quarter. Thanks again, and LOVE YOU ALL. REGINA L.

    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help. STEVE T.

    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide. SCOTT H.

    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485 PETER G.

    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming. LAWRENCE O.

    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your newsletter...it gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again! C.J.

    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace! SHAUN

    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good profitable calls. Keep up the good work. MICHAEL K.

    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!
    PARAG P.

    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN. JAY P.

    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You. MIKE

    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks. TRISH D.

    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock! MIN L.

    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you! JOE G.

    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming. GREG F.

    I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade. NOEL

    Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today. TODD F.

    What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you! PAUL H.

    “Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ” NOEL

    “Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.” CHRISTIAN

    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.” JOHN

    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.” CHARLES M.

    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.” BRYAN C.

    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.” JOHN H.

    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.” JEFFREY

    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.” ED

    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.” GREG

    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.” KEN

    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.” GARETT

    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.” TERENCE

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    3/18/11
    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    2/3/12
    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

    Hi Rick,

    Wow!! my account it up 70% since i joined last month and market is going the opposite direction. Really appreciate your service. I just wanted to drop a note to say THANK YOU. Hope to be with you guys for a very long time. Mel

    Rick,

    Great call on Fosl I bought the may 120 puts for 3.70 yesterday morning just sold for $32.00 today
    Keep up the great work
    Thank you, Henri

    Rick –

    I bought 10 Deckers Outdoor (DECK) May 55 puts at $0.50 on 4/26/12 and sold them on 4/27/12 for $1.65. I made $1150 in one day. Thanks. I knew something good would happen sooner or later.
    HOW THE HECK did you know Green Mountain Coffee (GMCR) was going to go down 20 points???!!!! I bought 10 of the May 35 puts at $0.49 and then 5 more at .30. I sold them at 5.80. Thank you again.
    You have made a believer out of me. Alan

    Rick –
    I have only been a member for about 6 weeks but I have done well on most of the trades. My first two were QQQ and SPY a month ago and since then I've gotten into the groove and been doing well.
    I try to execute the trades that you recommend as soon as you send them out, sometimes I can't and I miss the Entry price. However, sometimes when I miss the Entry, the price goes down and I get a better price.
    That's exactly what happened with GMCR.
    You recommended it at around $.81 I think, but by the time I got to it, the price was $.27. I bought 100 Puts on Wednesday May 2, 2012 and sold half of them 24 hours later at $5.95 for a nice 2,203% gain. As per your recommendation, as GMCR went above $30 I sold the remaining 50 Puts at $5.50 for a slightly less 2,037% gain.
    On average that one trade netted me a 2,120% gain, entirely based on YOUR recommendation (and a little bit of luck). To put this in real terms, I risked $2,700 on Wednesday and pocketed $54,550 just 24 hours later.
    So uhh, let's do that again real soon!!
    Feel free to use my name. The tax guys have me on speed-dial already anyway. Dennis

    Rick:
    That was awesome on your GMCR pick, I know how risky it can been holding into earnings but you pulled it off. 
    I just started my autotrading with you today and am in on your QQQ play. I look forward this service. 
    I have a busy career and I have tried to follow and trade throughout the day and found it too hard. I hope you continue to have a great year, I plan to go along for the ride. I am starting slow but will pile more in once I have secured some profits. 
    Keep up the good work your trading has been spot on. I am sure you paid your dues to get this point in your career. Anthony

    Rick:

    Great call on GMCR!  I have been trading for about 15 years actively.  This may be the best trade I ever made.  Got in on Monday, April 30 and the stock was up from when you recommended it.  It went up further after I got in.  Here are the facts:
    Monday, April 30th: Bought 15 June 37's at $1.25= $1900 approx
    Thursday, May 3rd: Sold 15 June 37's at $9.30=$13,950
    Gain for the week: $12,050.
    I understand you will not get them all right.  It’s important to ride those winners and as you could tell from my selling price, I sold when the stock went to $28.10, so left a little on the table.  Who can complain.
    Keep the suggestions coming, looking for another jump on your FSLR, one that I have been riding very hard.
    Best regards, Bob
      

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