MomentumOptionsTrading.com Mid-Market Update for 8/29/2014
12:30 p.m. (EST)
The bulls are trying to end a Friday hex as they have been about the only thing that has slowed the market down in August. Despite correctly predicting yesterday’s down day, I mentioned there were still bullish signs worth watching along with today’s close.
The blue-chips have played catch-up with the rest of the indexes after a choppy start but a positive Dow close would be bullish for next week.
I mentioned the baby bulls needed to step up this week and I talked about the Financial and small-caps needing to show strength. They have for the most part.
I also covered the S&P 500 Volatility Index ($VIX, 12.04, down 0.01) like a broken record throughout the week but needed to as it continues to give excellent clues for market direction. While I would have liked to have seen a close below 11.50 this week, today’s low on the open was 11.78 so there are signs the bulls will get there.
I have closed 11-of-12 winning trades since late July for the Daily portfolio. For the Weekly Wrap, I closed 4 winners in July and August to stretch this streak to 15-of-16 winning trades.
There have been 3 triple-digit winners of 133%, 113%, and 107%, respectively. I also have a tiger by the tale with one of the current trades for the Daily as it is up 128% going into next week. In between, there have been an incredible amount of double-digit winners.
With the summer winding down and August coming to a close, I can’t wait to celebrate the 3-day weekend. Yes, even market junkies like me love to take a Monday off every now and then.
Although it is too early to give myself a pat on the back as there is always work to do, it has been a busy August and I’m in perfect position to play the market’s next major move coming in September.
I mentioned a few weeks ago the Nasdaq would be the key to sparking a short-covering rally and Nancy, did I nail it. For those of you just joining me, I said this would be THE most important clue that could put the market into 3rd gear on a breakout to new all-time highs and would be the rising tide that lifts all boats.
The Wall Street crybabies that will be pouting on Tuesday because they missed the rally will be eager to get back in the market. I made sure I had money in the pot as I opened numerous trades this week to play a continued rally while locking in profits throughout August.
There was a bearish trade I opened yesterday and there are a couple more open in the portfolio but these trades are on a technical basis and one is for protection.
The talking heads continue to say this is the most hated rally ever and that this is a stock picker’s market. My answer to all of the noise is that I’ve been all aboard on the run to new highs and homework and chart work pay off.
Heading into the final hours of trading, the Dow is up 11 points to 17,091 while the S&P 500 is higher by 5 points to 2,001. The Nasdaq is gaining 16 points to 4,573 and the Russell 2000 is advancing 6 points to 1,172. All good signs.
I have updated the current trades and I have another Profit Alert for the portfolio. I will be watching the rest of the action into the close but I doubt I take additional action today.
I hope everyone enjoys the upcoming 3-day holiday weekend and I will be back Tuesday morning with the Pre-Market update.
P.S. Remember the good news I shared with you earlier about my partnership with InvestorPlace Media? Our brand new Momentum Options website is almost ready for you, so stay tuned for more details.