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Archive for the ‘IPO's’ Category

Bulls Come Out Running

Monday, January 4th, 2010

1:10pm (EST)

We have updated all of the current trades we are following and they continue to do well.  We are running behind so our commentary will be light as we have been spending our morning updating and watching the trades.  Current subscribers were delivered another NEW trade this morning which is already showing a slight gain.

As we head to press, the Dow is up 160 points to 10,588. 

Oh, Wynn Resorts (WYNN, $63.24, up $5.01) is up almost 9% today on an upgrade.  Hmmm, we wonder if the analyst saw the same things we saw when we took a trip to see how business was doing…casinos were packed over the holidays…

Current subscribers, check the Members Area for the updates.

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Market Flat at Halfway Point

Monday, December 28th, 2009

12:45pm (EST)
 
The market is trading in a tight today as the Dow has drifted within a 35 point range.  Currently, the index is up 11 points to 10,531.  The Nasdaq and S&P 500 are also higher by 5 and 2 points, with the Nasdaq standing in at 2,290 while the S&P 500 is at 1,128.
 

As we expected, volume is light in this holiday-shortened week and traders are looking for clues as to where the market is headed next month.  The data we see coming in is pointing towards a higher market but the devil will be in the details.

MasterCard’s Advisors’ Spending Pulse Holiday report indicated shoppers spent a little more this season as retail sales rose 3.6%, compared with a 2.3% drop in the year-ago period.  We have been mentioning the battle going on between the retailers and online merchants and both seem to be winning with this big turnaround.

Oil is up 95 cents, to $79/ barrel which is helping energy shares.  We are looking for Exxon Mobil (XOM, $69.01, up $0.35) to make a run to over $70 in the next few weeks…

Airline stocks are taking a dive as the U.S. tightened airline security after some idiot smuggled explosives aboard a plan over the weekend.  We aren’t big fans of airlines stocks anyway and we rarely trade the sector but this could curtail business travel on lucrative international routes.

AMR (AMR, $7.75, down $0.39), Delta Air Lines (DAL, $11.25, down $0.52) and JetBlue Airways (JBLU, $5.51, down $0.13) are all tanking today.  These stocks are probably headed lower but we really don’t see an option trade here.

As far as our other option trades, A123 Systems (AONE, $21.35, up $0.28) has moved into positive territory and we are expecting a run to $24 this week.  Meanwhile, General Mills (GIS, $71.46, up $0.51) continues to set 52-week highs.  We will be back in the morning with a full update on all of the trades but continue to hold them.


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Welcome Back AOL

Thursday, December 10th, 2009

1:10pm (EST)

The bulls are looking for their own 2-day winning streak as they have pushed the market higher today.  The bears pushed us relatively lower on Monday and Tuesday and yesterday we mentioned how we liked the action late in the afternoon which has carried over into today’s session.

The Dow is currently at 10,402, up 65 points, while the Nasdaq is enjoying a 14 point gain and is at 2,197.  The S&P 500 is chipping in with a 7 point gain and was last seen at 1,102. 

“You’ve got mail!”  Man, that seems like decades ago…wait, it was.

Back from the dead, AOL (AOL, $23.15, down $0.52) began trading again this morning on the NYSE exchange.  Some of you may remember the company pretty much led the charge in the Internet boom/bust days but merged with Time Warner (TWX, $30.56, up $1.36).

It didn’t work out too well and Time Warner has now spun-off the company.  AOL has traded to a high of $24.19 and a low of $22.86 today.

There are no listed options, yet, but you can bet when we see a trade we will be all over it  like a pit bull on a pork chop if there is an opportunity…

We do profile a NEW TRADE today and we really like the potential of this one.  Current subscribers, please check the Members Area NOW for the update.

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McDonald’s Not Lovin’ It Today

Tuesday, December 8th, 2009

1:10pm (EST)

The market is treading water today as all three major indexes are in the red.  The Dow is down 90 points to 10,300 while the Nasdaq is lower by 8 to 2,181.  The S&P 500 is back below 1,100 as is off by 8 to 1,095.

One of the stocks weighing on the Dow is McDonald’s (MCD, $60.72, down $1.21).  The stock is down about 2% but its impact on the Dow is 9 points or 10% of the decline.  The company said monthly sales fell (1.9%) for the second straight month as other establishments pushed lower prices to attract customers.  Weakness overseas also pressured sales that analysts said were worse than expected throughout the world.

We wouldn’t step in here but if shares fall to $58 we will take another look…

Another stock taking it on the chin is Goldman Sachs (GS, $162.40, down $1.45).  We were hoping to get into this one once it broke below $165 but we were a little late.  Yesterday, the stock opened at $166 and hit a high of $167 but we took our eyes off of it. 

Last Wednesday in our Members Area we had this to say.  Quotes are from December 2nd:

“We are also watching Goldman Sachs (GS, $165.82, down $1.81) closely but we feel a little uneasy shorting such a strong company.  However, we are watching the $165 level closely and a break below this level could lead to further weakness. 

We have been looking at the December 160 puts (GPYXL, $1.92, up $0.33) and the January 150 puts (GPYMJ, $2.50, up $0.14) all morning but feel like a deer in headlights.  If the stock breaks below $165 we will add the January 150 puts.” (END)

The December 160’s are currently trading at $2.30, up $0.45, while the January 150 puts are at $2.80, up $0.35.  We listed this trade outside of the Members Area today because we did not get good entry points which is why we did not sent out a Newsflash. 

We aren’t sure if Goldman continues lower or bounces back but we felt there were better opportunities out there.  Having said that, we have two trades that have done pretty well today and we cover those in the Members Area.  Current subscribers, check for the updates…

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Bernanke Speaks, Market Listens

Monday, December 7th, 2009

1:05pm (EST) 

The market is looking for direction today as well as the U.S. dollar.  The bulls didn’t let the open deter them from taking the market higher today.  We’ve mentioned the dollar trade and how we will have to see how it plays out from here but we don’t necessarily believe a higher dollar is all that bad for the market.  After a strong start the dollar is at $75.81, down $0.10.

The Dow is currently up 26 points to 10,415 and has traded as high as 10,442.  The S&P 500 is up a point to 1,106 while the Nasdaq is down a point to 2,193.

Gold continues to do its best Tom Petty imitation as is it “breaking down” again today.  The yellow metal is off another $23, to $1,146, following Friday’s plunge.  Oil is lower by $1.03 to $74.44 as news spreads on Wall Street that our inventories are high.  At current levels we have a 6% surplus the experts say…

The Solar stocks are getting a boost after an upgrade in the sector.  We starting noticing First Solar’s (FSLR, $134.62, up $5) last week and it is an extremely volatile stock.  In September, we played the options on this stock on the way up and the way down.  We profiled a two-day put option trade on 9/1/09 that got subscribers a 50% return and a little over a week later we were able to get them a 30% return on the way back up.  We are waiting for another good entry point but the $15 move since last week has been impressive.

We have updated the current trades again in our Members Area today for those of you who are the run…

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Trader Comments:

    LAWRENCE O.
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    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.

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    KEN
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    GARETT
    “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.”

    TERENCE
    “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.”