12:55pm (EST)
We hate to see this week come to a close because it has been our BEST week of a Goodyear (GT, $14.70, up $0.92) so far. Pun intended.
We have closed a number or triple-digit winners, including last week’s monster gains, and we said in late April the breakout (or breakdown) out of the 6-week trading range would yield huge profits. The 7-week range from the beginning of March through mid-April frustrated us because options are time sensitive so we need volatility or a clear trend to get the most bang for your buck. For those of you that have been patient and headed our catcalls for a breakout rally in May, you have been well rewarded.
Since late April we have recommended 19 option trades, all call options, or bullish bets May would be a special month for the bulls when nearly everyone we know was calling for a pullback. All of our near-term targets for the indexes have come into play and even our year-end targets are within reach.
Out of the 19 trades, we have only has 2 losers for a 90% win rate. We still have some open trades but we have locked-in quarter, third, and half profits on a few of these trades and we have stops in place to protect our profits.
Some of the gains include 140% on the SolarCity (SCTY, $42.34, up $6.65) May call options, 173% on Big Five Sporting Goods (BGFV, $21.75, up $0.35) May call options, 263% on Regeneron Pharmaceuticals (REGN, $265.42, up $0.76) May call options, 100% in Beam (BEAM, 68.74, up $0.09) June call options.
We also have open trades that are approaching gains of 200% and we are expecting further gains from them if the rally continues into next week. Other current open trades are showing high double-digit profits and could hit triple-digits over the next few weeks.
We are also excited about playing a continued rally or the mother of all pullbacks if and when the bears ever wake up. We spend all day on Sunday’s doing chart work for the indexes, current trades and possible trades on our Watch List and we can’t wait to check the charts this weekend.
We are neither bullish or bearish as we could care less which was the market goes because we can make just as much money in a bear market as we do in bull markets. If you are nervous about a pending pullback, don’t be. Check out our 2008 portfolio and the insane profits our subscribers made when the Dow was losing 200, 400, 500 and 777 points a day.
Of course, we are still in a bull market and we will continue riding the bulls back until we get the clues of a possible trend change coming. Our Daily portfolio for 2013 is showing incredible gains and we are now beating the market by 5 times over. Our Weekly Wrap has been no slouch either as we are 14-1 with another possible 1 or 2 trades closing today.
We can’t wait for next week and we are in a great position as we wind down May and start to look forward to June and the rest of the year. Folks, this could be one of the best times EVER to play the options market – to the upside- and downside, eventually.
We often mention the bulls like to take the steps when it comes to moving to higher ground but the bears? They like the elevator. For now, the bulls continue to stair step higher.
As we head to press, the Dow is up 62 points to 15,295 while the S&P 500 is higher by 8 points to 1,658. The Nasdaq is advancing 14 points to 3,479.
We have some last minute updates on our current trades before the weekend hits and we have another NEW TRADE we are getting into.
We will be back Sunday evening with the Weekly Wrap and Monday morning with the latest and greatest. Until then, have a great weekend and treat yourself to dinner and some cold sodas following the incredibly profitable week we have put in!
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Hey Nineteen
Wednesday, May 22nd, 2013
9:00am (EST)
The bulls stretched the Dow’s winning streak on Tuesday’s to 19-straight as the blue-chips rebounded off their lows to push another all-time high. The come from behind victory extends a streak that has been active since mid-January and has accounted for nearly 70% of this year’s winnings for the index. The bulls will be going for 20 next week following a holiday Monday and volume could be weak as summer vacations begin to kick in.
The Dow added 52 points, or 0.3%, to close at 15,387 on Tuesday. The blue-chips traded in a 91-point range with the low checking-in at 15,326. The intraday high of 15,434 still keeps our 15,500-600 target in play as long as short-term support at 15,300 holds.
The S&P 500 advanced 3 points, or 0.2%, to settle at 1,669. The index traded down to 1,662 on the open but nearly cleared our 1,675 target after trading up to 1,674.93. A close above this level would trigger a possible run towards our year-end target of 1,700. Support has been strong at 1,650 since last week and we are still watching this level on a pullback.
The Nasdaq popped a 6-pack, or 0.2%, to finish at 3,502. Tech closed above our near-term target of 3,500 and kissed 3,512 while holding down resistance. The index could run to 3,600 before a pullback as we would be surprised to see our year-end target of 3,800 tested without one – but you never know. Support will now try to hold at 3,500 followed by 3,450.
The Russell 2000 added a point, or 0.1%, to close at 998.78. The small-caps tripped 1,000 again by a half-point but finished just below this level for the second straight session. Meanwhile, the S&P 500 Volatility Index ($VIX, 13.37, up 0.35) was up nearly 3% but stayed below 13.50 after testing 13.44.
As we head to press, futures are showing a slightly higher open: Dow (+21); S&P 500 (+3); Nasdaq 100 (+6). Subscribers, hit the Members Area for the latest updates.
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