9:00am (EST)
(To view the charts, please log into the Members Area this morning. Also, for subscribers who upgraded to a 1-year membership over the weekend, please make sure you watch the video we sent this morning for our option course which covers a few more charts we draw out for you on the fly and how we come up with new trades.)
“The major indexes ended mixed on Monday with the S&P and Nasdaq showing the slightest of gains while the Dow fell 30 points. Friday was pretty much the same with the S&P switching sides. We have been talking about negative Friday and Monday closes which are bearish and although there wasn’t a crystal clear picture on this indicator, we would have to say the action favored the bears.
We are unsure on how shares will open and trade when FaceBook becomes public but it should be interesting.
If the offering is well-received by Wall Street, the market could get a bounce, if support isn’t broken by then. If the demand isn’t overwhelming, and shares struggle, look for the bears to step on the gas.”
(from 5/13/2012 Weekly Wrap/ Monday Morning Outlook)…
As you can see from last week’s chart, the market played out like a fiddle as the bears controlled the action all week despite the FaceBook (FB, $38.23, up $0.23) frenzy on Friday. We rode the bears back to one of our most successful weeks of the year as we were able to lock-in profits on 7 more triple-digit winning put option trades.
There was no bounce on Friday as FaceBook got baked into the cake as you can see from our comments in the aforementioned chart’s red box. The bulls are looking for a rebound but the bears did some serious technical damage last week. The charts and other warnings signals we have been giving you have been spot on all year long and so far we have had a HUGE May.
This week’s charts are showing a possible bounce but the overall trend is still lower. (continued…)
*********************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a unprecedented start for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Together, we are 87-20 and we doubt you will find a hotter newsletter.
Our list of winners also include +576% on GMCR, +475% on AXP, +292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125% on MSFT just to name a few. In other words, these solid gains could have turned your $10,000 trading account into over $80,000 for a 710% return using our recommendations. Wow! Our auto-trading partners verify our results so if you are a busy professional and work during market hours, they can do the trading for your account!












Market Pops, Facebook (FB) Flops
Monday, May 21st, 2012
12:45pm (EST)
The bulls are running hard today just as we expected after two heavy weeks of selling pressure. Economic news will be light this week with no reports scheduled for today. Geopolitical news from across the pond has been a non-event and earnings are winding down.
It remains to be seen how much momentum the bulls can carry but we are looking for upper resistance to hold which will allow us to enter some more juicy trades.
The Dow is up triple-digits as it is sporting a 102 point gain and is at 12,472 while the S&P 500 is higher by 15 ticks to 1,310. The Nasdaq is up over 50 points to 2,830.
Facebook (FB, $34.10, down $4.13) is down 11% and we can’t wait until the options list which should be in a few weeks.
We do have a NEW TRADE we are recommending today after closing 5 more put options for profits this morning. It is an earnings trade so we are suggesting half positions and follow our trade instructions very carefully by using limit orders.
Subscribers, check the Members Area for the updates and stay lock-and-loaded in case we see something else we like.
Tags: Facebook (FB) selloff, Facebook options
Posted in Market Analysis, Market Commentary | Comments Off