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Thursday, February 9th, 2012
9:00am (EST)
The bulls finally caught a break and had some momentum before the bell on Wednesday but struggled to hold their gains as a Greece deadline looms. We held off a day talking about the cash-strapped country because much of the rhetoric is the same and because Greece is still talking to the troika on austerity measures.
The troika is the 3-headed monster made up by the International Monetary Fund (IMF), European Union (EU), and European Central Bank (ECB) and we have mentioned how all three are trying to help Greece pay the mortgage.
We won’t go over all of the proposed details but we can imagine the sheets hitting the fan when the Greek government workers, who are promised jobs for life, get a pink slip. The general public probably won’t be too happy with a 20% cut in minimum wage.
Despite the nervousness, the bulls won their second-straight session and now hold a slim lead for the week.
The Dow added 6 points to end at 12,883. The blue-chips traded within a tight 76 point range with the high at 12,893 while the low was 12,817. The 12,800 support level has held up well this week but it feels like we are skating on ice.
The S&P 500 gained 3 points and settled just under our 1,350 target at 1,349.95996 to be exact. The index did trade to a high of 1,351 on the dot and these funny numbers might be giving us a bulls or bear clue. Remember, we want to see a close above 1,350 this week or our February pullback (which we predicted in early January but told you to stay long) could be on the horizon.
The Nasdaq added a dozen points and finished at 2,915. We mentioned Tech was at a decade high, and the index reached a peak of 2,918 yesterday, but we still need another 3% move before our 3,000 near term-target is hit.
Although the bulls have the lead for the week, they have been unable to close above our near-term targets. This is making us a little nervous but we have been closing our bullish call positions and banking as much cash as we can before there is a pullback.
We do have some open March, April and June call options that are open but we have locked in half profits on some of them and have stop targets in place to protect profits. We only have two open February positions which expire next week so we are in beautiful shape.
We have turned a $10,000 portfolio into nearly $30,000 in just 6 weeks as we have hit 22-out-of-23 winning trades to start 2012. You can request our track record if you are not a subscriber to see the detailed trade-by-trade performance.
Breaking News – a statement on a Greek debt deal is imminent.
As we head to press, futures look like this: Dow (+12), S&P (+1), Nasdaq (+1). Subscribers, check the Members Area for the updates.
Tags: call options, stock option trading, troika
Posted in Market Commentary, Money Management, Option Trades | Comments Off
Tuesday, January 3rd, 2012
9:00am (EST)
The bulls were facing an uphill battle on Friday as they tried to end the week and 2011 on a positive note. The major indexes were slightly lower heading into the last trading day of the year and futures were flat heading into the opening bell. Following a strong rally and rebound on Thursday, this wasn’t a good sign for a run past resistance.
History was also against the bulls as the Nasdaq had closed lower 9 of the last 10 years. Make it 10-for-11. Before the slide, Tech was up 29 years in-a-row from 1971 thru 1999. The S&P 500 had been down 7-out-of-8 on the last trading day for the year and that streak was extended to 8-for-9.
We were hoping for a “flat” day but the drift lower persisted into the close despite light volume. As you will see, the longer-term charts are still bullish for 2012 even if there is a significant pullback near-term. While we are still hopeful this is not the case, the market will face a number of headwinds this week and next with the start of 4Q earnings season.
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If you are not a subscriber but would like to read more and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the few option newsletters which posted a powerful 2011 return. 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!
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 Analysis, Market Commentary, Money Management, Option Trades, Trade Update | Comments Off
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
Thursday, September 30th, 2010
1:05pm (EST)
The market has been on a wild ride and everything we have been talking about appears to be happening. The bulls got a lift this morning on better-than-expected economic data as Wall Street ignored the troubles from across the pond.
There seems to be more issues concerning the Central Bank of Ireland and a downgrade of Spain’s credit rating by Moody’s (MCO, $25.09, down $0.06), again, couldn’t faze the bulls after they got good news from here in the States.
The government reported 2Q gross domestic product (GDP) grew at 1.7%, which was better than the 1.6% figure Wall Street had penciled in. The GDP price index came in at 1.9% quarter-over-quarter. Elsewhere, there were 453,000 new jobless claims last week, compared with estimates of 459,000. The 4-week moving average of claims came in at 458,000, down from the prior level of 463,250. And finally, the Chicago Purchasing Managers Index (PMI) came in at 60.4 for September, versus estimates of 56.
The bulls did manage to break key resistance levels and push the market higher but a lot of traders decided to take profits once we reached those levels.
 Dow Jones 15-Minute Chart The Dow soared to a triple-digit gain at the open and traded as high as 10,948 but has now gone in the other direction and is down 83 points to 10,751. We have outlined short-term resistance at 10,950-11,000 and support is at 10,800. The 200-point swing only confirms our view that volatility will be INSANE as we head into October. Remember, 3Q earnings season is just a few weeks away and we are licking our lips like a pit bull on a pork chop.
The S&P 500 was successful in taking out the 1,050 level as it traded to a high of 1,157 but is now off by 7 points to 1,137. We have been talking about the resistance at 1,150 for the index and we know resistance can get “stretched” but now the index will need to hold the 1,130 level of this could get super exciting.
The Nasdaq kissed 2,400 and got smacked and is now showing a decline of 18 points to 2,358.
Folks, buckle up and hold on tight. This market is going on a wild ride in October and as option traders, this is what we want to see!
One quick update on the trading manual to answer some of the emails we are getting. We normally respond to emails in 24 hours or less but we are overwhelmed today. So, we thought we would cover a few questions here.
The price will be $599. There are two manuals, one that covers trading, the other is a list of stocks and sectors that help you make Watch Lists. We also talk about the 600 companies we cover and tell you what moves the sector and which stocks are the strongest or weakest.
We are making this an introductory price because we will be doing videos to cover the manual on a weekly basis until it is complete. Once our “series” of training workshops is complete, we will make a DVD to be included with your course. The videos will show you how to find trades and they will cover how you would find a trade in the current market environment.
In any event, we don’t believe people should pay thousands of dollars for an option course that don’t teach you anything or ones that always want to up-sell you. Our goal is to TEACH you how to read the market and find your own trades.
We are proud of our nearly 70% 3-year track record on option trades. Who knows, there may be some of you who can average 80% winning trades. That would be awesome and our goal is simply a mission to teach average investors the power of option trading at a cheap, affordable price.
Look for a tab on the website with more details on Friday morning. Or late tonight.
We will be back at 9am tomorrow with a full update.
Tags: explain the concept of options, momentum options trading, option picks, option trading blog, option trading course, option trading courses, straddle option trades, strangle option trades, triple-digit options returns
Posted in Market Analysis, Money Management, Trading Psychology, Trading Tips | Comments Off
Thursday, March 18th, 2010
12:30pm (EST)
Folks, we hit one out of the park today and we are smiling (no pun intended as you will see). We have been busy all morning updating the action in our Members Area and we have another trade on the tip of our tongue as we speak.
We have been talking about Nike (NKE, $75.10, up $4.22) in our Members Area all week and we thought we would give those of you who haven’t joined us a sneak peak. Here were our thoughts when we recommended a Nike call option trade in our 9am update yesterday morning:
“Action: Tiger is back and the company reports earnings after the bell today. It’s almost too good to be true and it just feels funny how all of this is coming together. In fact, it almost feels like the perfect “buy the rumor, sell the news” event.
We are going to be honest with you. This feels like a setup and we could get a baseball bat to the face on this trade if we are wrong. But we like it and the options are only 50 cents. A 10 contract trade is $500.
We recommended a Nike call option the last time out the company reported earnings which was back in November. That trade returned 173% for our subscribers and we are hoping this one doubles.
We doubt the stock moves 10%, or $7, on Thursday’s open but we do think a 5% move is a given. That should be plenty to make the April 75’s double.
If Nike misses, we still have 5 weeks before the options expire. Roll the dice. Use limit orders of up to 65-75 cents but try to get them cheaper at the open. If the calls open HIGHER than 75 cents, VOID the trade.” (END)
The calls we mention opened at 50 cents yesterday so we got even better prices than we anticipated. They closed for a 50% paper profit by Wednesday’s close but have exploded today and are currently trading at $1.85. We alerted our subscribers to close half of their position into strength but we can still ride the wave if Nike runs to $80.
We also have another trade we are profiling that we think has the chance to at least double so we released today’s update a little early. We are also close to shutting down another trade for a 50% profit so timing is crucial for current subscribers.
As we head to press, the Dow is up 7 points to 10,740 and is going for 8-in-a-row. The Nasdaq is down 2 to 2,386 while the S&P 500 is off 3 points to 1,162.
Tags: Nike call options, Nike earnings, NKE, NKE call options, option picks, option signals, options alerts, stock option picks, stock options trading
Posted in Hot Stocks, Market Commentary, Money Management | Comments Off
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Bulls Holding Slight Weekly Lead
Thursday, February 9th, 2012
9:00am (EST)
The bulls finally caught a break and had some momentum before the bell on Wednesday but struggled to hold their gains as a Greece deadline looms. We held off a day talking about the cash-strapped country because much of the rhetoric is the same and because Greece is still talking to the troika on austerity measures.
The troika is the 3-headed monster made up by the International Monetary Fund (IMF), European Union (EU), and European Central Bank (ECB) and we have mentioned how all three are trying to help Greece pay the mortgage.
We won’t go over all of the proposed details but we can imagine the sheets hitting the fan when the Greek government workers, who are promised jobs for life, get a pink slip. The general public probably won’t be too happy with a 20% cut in minimum wage.
Despite the nervousness, the bulls won their second-straight session and now hold a slim lead for the week.
The Dow added 6 points to end at 12,883. The blue-chips traded within a tight 76 point range with the high at 12,893 while the low was 12,817. The 12,800 support level has held up well this week but it feels like we are skating on ice.
The S&P 500 gained 3 points and settled just under our 1,350 target at 1,349.95996 to be exact. The index did trade to a high of 1,351 on the dot and these funny numbers might be giving us a bulls or bear clue. Remember, we want to see a close above 1,350 this week or our February pullback (which we predicted in early January but told you to stay long) could be on the horizon.
The Nasdaq added a dozen points and finished at 2,915. We mentioned Tech was at a decade high, and the index reached a peak of 2,918 yesterday, but we still need another 3% move before our 3,000 near term-target is hit.
Although the bulls have the lead for the week, they have been unable to close above our near-term targets. This is making us a little nervous but we have been closing our bullish call positions and banking as much cash as we can before there is a pullback.
We do have some open March, April and June call options that are open but we have locked in half profits on some of them and have stop targets in place to protect profits. We only have two open February positions which expire next week so we are in beautiful shape.
We have turned a $10,000 portfolio into nearly $30,000 in just 6 weeks as we have hit 22-out-of-23 winning trades to start 2012. You can request our track record if you are not a subscriber to see the detailed trade-by-trade performance.
Breaking News – a statement on a Greek debt deal is imminent.
As we head to press, futures look like this: Dow (+12), S&P (+1), Nasdaq (+1). Subscribers, check the Members Area for the updates.
Tags: call options, stock option trading, troika
Posted in Market Commentary, Money Management, Option Trades | Comments Off