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Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
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If you are not a subscriber but would like to read more about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. Since early August we have made 48 recommendation, both calls and puts, and have hit on 40 out of 48 trades for a winning percentage of over 80%! Some of our recent winners include:
+169% on Joy Global (JOYG) call options in 2 days
+137% in Research In Motion (RIMM) put options in 3 weeks
+130% in Spreadtrum Communications (SPRD) call options in 4 weeks
+164% in FedEx (FDX) put options in 6 days
+184% in Goldman Sachs (GS) put options in 5 days
+191% in O’Reilly Automotive (ORLY) call options in 17 days
+100% in VMWare (VMW) call options in 4 days
We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors
Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off
Friday, November 11th, 2011
8:45am (EST)
The bulls got back a third of Wednesday’s losses following yesterday’s rebound as the market finished higher by about 1%. The bounce came after the European Central Bank (ECB) increased its bond buying which lowered the Italian yields and gave Wall Street some confidence.
Italy is paying a yield of nearly 7% to sell 12-month debt, and although there was relief the yield stayed at 6.9% following Wednesday’s spike above 7%, worries remain that the country’s borrowing costs are unsustainable.
There was also some clarity in who could be the next person to lead Italy as former European Commissioner Mario Monti emerged as the front-runner to replace Silvio Berlusconi. This could become official as soon as this weekend.
As far as Greece, they named a new Prime Minister yesterday which also provided some stability. Lucas Papademos, a former VP at the ECB, will now be in charge of getting austerity measures passed.
As far as the market, the Dow gained 112 points, or 1%, and finished at 11,896. The index reached a high of 11,961 while we were doing our midday update but was unable to reach the 12,000 level. We would like to see a run past 12K today and said earlier this week 11,800 should hold.
The S&P 500 added 10 points, or 0.9%, and closed just under 1,240. The index kissed a high of 1,246 but fell just short of triggering 1,250 which is where we would like to see the index finish today. The low was 1,227 and we were watching 1,225 like a hawk which we said had a strong possibility of holding.
The Nasdaq lagged for much of the day but advanced a little over 3 points, or 0.1%, to settle at 2,625. Yesterday’s low of 2,601 still puts downside risk at 2,600-2,550 but the bulls will try to push 2,650-2,700 before the weekend hits.
Futures are pointing towards a strong open this morning. Dow futures are up 100 points to 11,955 while the S&P futures are higher by 13 points to 1,250. The Nasdaq 100 futures are advancing 23 points to 2,326. Subscribers, check the Members Area for the updates.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Market Commentary, Mergers and Acquisitions | Comments Off
Monday, October 24th, 2011
1:50pm (EST)
When we left for break on Friday, we knew heading into the weekend the market would be vulnerable to any setbacks from this weekend’s summit between the European Union (EU) leaders. However, the good news is that while everyone knew nothing concrete would come from the meeting by this morning, the markets are hoping for some type of resolution to Europe’s debt crisis by mid-week. When we learned of the possible backup meeting, we knew there was a good chance the rally, especially when it went out on Friday near its high, would continue.
Although economic news has been light, the indexes are moving higher after Caterpillar (CAT, $92.44, up $5.03) beat Wall Street’s estimates while M&A activity seems to be heating up. We mentioned a few weeks ago that 3Q earnings could be a catalyst to take the market higher and that lower stock prices could mean more takeover targets and those catalysts are playing out.
Caterpillar reported a profit of $1.14 billion, or $1.71 a share, versus $792 million, or $1.22 a share, in the year-earlier period. Revenue came in at $15.7 billion. The company would have earned $1.93 a share but the results excluded its $7.6 billion acquisition of Bucyrus International. The suit-and-ties were looking for a profit of $1.63 a share on $14.8 billion in sales.
Even better, Caterpillar also said it now expects 2011 earnings of $6.75 a share on revenue of $58 billion, up from a previously forecast of $6.25-$6.75 a share on revenue of $56-$58 billion.
We had the Caterpillar (CAT, $92.74, up $5.35) November 90 calls (CAT111119C00090000, $5.05, up $2.05) on our Watch List Friday morning at $1.80 but they had gapped up to $2.40 at the open so we didn’t get in. Although we didn’t feel like chasing, some of our subscribers did.
Elsewhere, Oracle (ORCL, $32.75, up $0.63) has agreed to acquire RightNow Technologies (RNOW, $42.90, up $6.94) for $43 a share while Mattel (MAT, $28.43, up $0.74) plans to scoop up privately-held Hit Entertainment. Also, JM Smucker (SJM, $77.09, up $0.57) decided it needed a coffee division and will buy a majority of Sara Lee’s (SLE, $17.74, down $0.03) North American unit.
As we head to press, the Dow is up 102 points to 11,910 while the S&P 500 is higher by 15 points to 1,253. The Nasdaq is surging 58 points to 2,695.
We have 2 NEW TRADES today so we have to roll. We also have another triple-digit winner on our hands as one of our current call option trades has hit a 112% return and we need to take action. Subscribers, check the Members Area for the updates.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Earnings, Market Analysis, Mergers and Acquisitions | Comments Off
Monday, September 12th, 2011
1:50pm (EST)
Futures were weak for much of last night and throughout the morning which lead to a lower open to start today’s session. Much of the weakness has been due to the water cooler talk of a pending default on Greece’s debt, although their Prime Minister stated his country would not default. Meanwhile, the unexpected resignation of Japan’s new trade minister has Wall Street wondering about the pace of the country’s post-earthquake/tsunami recovery. Here at home, the President spoke from the rose garden and said he was sending his American Jobs Acts bill to Congress today.
The Dow opened with a triple digit loss, rebounded, but is currently showing a decline of 117 points to 10,874. The S&P 500 is down a dozen points and is at 1,142 but has traded in positive territory, suggesting the losses could be contained today.
The Nasdaq is lower by 14 points to 2,454 but has traded to a high of 2,486.
We mentioned support and resistance this morning and the market appears to have factored much of the Greece news into today’s session which means we could bounce in the finally hour of trading.
Tech stocks are getting cheap which means we could start to see more M&A deals. In fact, Broadcom (BRCM, $32.42, down $1.02) has been talking to NetLogic Microsystems (NETL, $48.05, up $16.14) for awhile and finally agreed to buy the company for $3.7 billion, or $50 per share.
The deal represents a premium of 57% to NetLogic’s closing price of $31.91 on Friday but the stock had traded in the $40’s for much of the year. In May, shares hit a high of $43.71 so Broadcom wanted to scoop them up before they recovered which would have meant a higher bid. The deal, which was approved by both boards, is expected to close in the first half of 2012.
We have a few trade updates to go over and we are close to adding new trades. Subscribers, check the Members Area for the updates. Pay attention to the Watch List as we may release a trade today in the final hour if the price is right.
Tags: About options trading, BRCM, NETL, option trading, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in Market Commentary, Mergers and Acquisitions | Comments Off
Thursday, September 1st, 2011
8:45am (EST)
The bulls ended August with a win as they extended their streak to four straight sessions and 7-out-of-8 after saying goodbye to a nasty month. Wednesday’s action was strong at the open but the bull train lost some steam when news broke that AT&T’s (T, $28.48, down $1.14) planned merger with T-Mobile USA isn’t going to happen, Captain.
The news sent shares of AT&T tumbling and weighed heavy on the market for the rest of the day as it slipped into negative territory by late afternoon. However, the bulls found their footing in the final hour and made one last push into the close to come out on top.
The Dow gained 54 points, or 0.5%, to finish at 11,613. The index closed above our 11,600 target and traded to a high of 11,712. The next wave of resistance before flirtation with 12,000 will come in at 11,750-11,800. A pullback from here could lead to a test back down to 11,350. For the month, the Dow was down 4.4%, but is now showing a slight gain of 0.3% for the year, or 36 points.
The S&P 500 added 6 points, or 0.5%, and ended at 1,219. We were looking for a close above 1,225 after the index kissed 1,230 but we fell just short. Normally this would be close enough for government work but this is the stock market which is a little harder to figure out. Joking aside, we said the S&P could run to 1,250 if this level were cleared but yesterday’s action was funky and there is still risk of a pullback to 1,200 if current levels don’t hold. For the month, the S&P fell 5.7% which represented its worst showing in 3 decades. The back to even point for the index is 1,257.
The Nasdaq chipped-in with a 3 point pop to settle at 2,579. Tech traded to a high of 2,611 and we said to watch for the battle at 2,600. The bulls are still pushing for 2,625-2,650 if cleared while support comes in at 2,550-2,525. As for August, the Nasdaq dropped 6.4% and is down about 75 points for 2011.
Futures are pointing towards a slightly lower open this morning after the update on Initial Claims which fell 12,000 to 409,000. The 4-week moving average rose by 1,750 to 410,250. Continuing Claims came in at 3.735 million versus 3.753 million the week before.
Dow futures are down 6 points to 11,597 while S&P futures are off by 2 points to 1,216. Nasdaq futures are up 2 points to 2,243.
Subscribers check the Members Area for the updates.
Tags: About options trading, option trading, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in Economic News, Market Commentary, Mergers and Acquisitions | Comments Off
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Bulls Walking on Thin Ice
Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
************************
If you are not a subscriber but would like to read more about where the market is headed and to take a closer look at our chart work along with our current trades, please click here. Since early August we have made 48 recommendation, both calls and puts, and have hit on 40 out of 48 trades for a winning percentage of over 80%! Some of our recent winners include:
+169% on Joy Global (JOYG) call options in 2 days
+137% in Research In Motion (RIMM) put options in 3 weeks
+130% in Spreadtrum Communications (SPRD) call options in 4 weeks
+164% in FedEx (FDX) put options in 6 days
+184% in Goldman Sachs (GS) put options in 5 days
+191% in O’Reilly Automotive (ORLY) call options in 17 days
+100% in VMWare (VMW) call options in 4 days
We are one of the fastest growing stock options trading advisors on the internet. We offer powerful call and put option trades aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Sign-up now and receive access instantly!
Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors
Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off