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Wednesday, March 28th, 2012
9:00am (EST)
“Although this week is historically bearish, we could see some “window-dressing” by the fund managers which means they will be buying stocks early in the week. We still feel the market is close to peaking but we wouldn’t be surprised to see one last run at our near-term targets (Dow 13,500; S&P 1,425-1,450; Nasdaq 3,250; Russell 850) if there is a rush to buy this week.
We could also see a trading range this week before we get the surge in April which is typically one of the best months of the year for the market. Over the past decade, the indexes have gained 2%, on average, in April and if support holds this week, there is a good chance history repeats itself. However, we aren’t too bullish on 1Q earnings which will start to come in during the second week of April.” (3/25 Weekly Wrap and Monday morning outlook)
So far the market is following our road map for the week following Monday’s big surge. There was a little follow through on Tuesday as some of the large-cap stocks like International Business Machines (IBM, $207.18, down $0.59), Home Depot (HD, $50.04, down $0.09), Walt Disney (DIS, $44.15, down $0.23) hit new 52-week highs before pulling back as the follow through rally fizzled late in the day.
The Dow gained 44 points, or 0.3%, to close at 13,197. The blue-chips traded to a high of 13,265 but closed below the 13,200 level which is becoming the new favorite playground for the bulls and bears this week. Dow component, Pfizer (PFE, $22.50, up $0.34) managed to hit a new 52-week high of $22.80 but it wasn’t enough to keep the index out of the red.
The S&P 500 slipped 4 points, or 0.3%, to end at 1,412. The index traded to a high of 1,419 at the open, its loftiest level since May 2008, and fell just short of kissing our near-term target of 1,425.
The Nasdaq dipped 2 points, or 0.1% to settle at 3,120. Tech traded to a high of 3,134 late in the day but went out near its low by the closing bell. Apple (AAPL, $614.48, up $7.50) tried to keep the index in the green and did its part after setting a fresh all-time high of $616- and change. The Apple March 610 calls (AAPL120330C00610000, $7.75, up $2.65) opened at $4.65 before adding 50% for the day. It’s been years since we have played options on Apple but now that the stock trades WEEKLY options, we have found a cheaper way to play the stock.
Futures are favoring the bears this morning as we head to press and look like this: Dow (+35); S&P 500 (+4); Nasdaq (+8). Subscribers, check the Members Area for the updates as we have moved a couple of Hard Stops up to protect profits.
Tags: AAPL, hard stop, IBM, option hard stop, Walt Disney stock
Posted in Hot Stocks, Market Analysis, Sectors | Comments Off
Tuesday, November 29th, 2011
12:20pm (EST)
Most of you aren’t shocked by today’s headlines that AMR (AMR, $0.35, down $1.27), the parent company of American Airlines, has filed for Chapter 11 bankruptcy after blaming higher fuel costs and its failure to win a labor deal with its pilots. The company said it currently has assets of $25 billion while its liabilities are approaching $30 billion. With only $4 billion in cash, AMR felt it would be best to reorganize now and the Chapter 11 filing won’t affect flights during the bankruptcy process.
Airlines stocks have never been a great long-term investment, unless you short them, but there are times when you can trade them. The industry has never been able to flip a profit since being deregulated in the 1970’s so trade this sector with caution.
Although 3Q earnings season is winding down, there are still a few notable companies that will be reporting over the next few weeks. Tiffany & Company (TIF, $67.45, down $6.17) beat Wall Street’s estimates after reporting a profit of $90 million, or $0.70 a share, versus $55 million, or $0.43 a share, in the year earlier period. Revenue came in at $822 million. Analysts were expecting $0.61 a share on sales of $804 million.
Going forward, the company said it expects earnings of $1.48-$1.58 for the current quarter but the suit-and-ties were looking for $1.63, on average. Tiffany pointed the finger at Europe for the lowered expectations, which was no surprise, but either way, shares are down 8%.
As far as the market, the bulls are making continued progress after getting a better-than-expected Consumer Confidence number. The November reading of 56 was a big jump from October’s print of 40.9 and much higher than the forecast of 44. Elsewhere, the S&P Case Shiller Index fell 0.6% and missed expectations for no change.
The European markets are now closed for the day as the region’s top brass will meet behind closed doors tonight. They will be trying to come up with a better solution for their current debt crisis so the news over the next few days will be market moving.
The bulls have done a great job in pushing the indexes forward as they have broken through our near-term resistance targets.
The Dow is up 95 points to 11,617 while the S&P 500 is higher by 9 points to 1,202. The Nasdaq however, is struggling a bit and was last seen at 2,528, up a point.
We have 2 NEW TRADES we are releasing today that we are expecting to return 100%+ on each so we have to roll. Subscribers, check the Members Area for the updates and the new option recommendations.
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, Economic News, Sectors | 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
Monday, November 29th, 2010
9:00am (EST)
Futures are pointing towards a slightly lower start this morning despite some encouraging data related to the holiday shopping season. Early numbers are positive as consumers have spent over $11.6 billion on the holiday season-to-date, up 13% versus this time last year.
Black Friday was especially good to the internet as online sales came in at $650 million, which represented a 9% increase versus Black Friday 2009. Thanksgiving Day, which is traditionally a lighter day for online sales, achieved nearly a 30% increase to over $400 million.
PayPal, eBay’s (EBAY, $31.15, down $0.06) popular online payment method, reported strong Black Friday shopping results, as sales surged nearly 27% in total payment volume on Black Friday 2010, compared to the previous year.
eBay made a gem of a purchase when it acquired PayPal back in 2002 for $1.5 billion. PayPal accounted for almost 40% of eBay’s overall revenue in the most recent quarter, versus just over 20%, five years ago. EBay’s payments unit, which consists mostly of PayPal, did $840 million in payments in its latest quarter and might hit $1 billion this quarter.
The real growth for PayPal, err, we mean eBay, is the mobile ad business which saw over a 300% increase in mobile shopping on Black Friday. eBay may not want to admit it, but PayPal could end up becoming bigger than eBay itself down the road.
Shares of eBay hit a fresh intra-day high of $31.48 on Friday.
Retailers will remain in focus today as more sales results from Black Friday start to trickle in, and online retailers gear up for today’s Cyber Monday sales.
As we head to press, Dow futures are down 5 points to 11,025 while the S&P futures are off by a point to 1,182. The Nasdaq 100 futures are lower by 3 points to 2,143. We have a lot to cover in our Members Area so let’s get to it.
Tags: bear market, binary options, bull market, call option, how to trade options, Momentum stocks, option investments, option picks, option trading, options, options mentoring, options trading service, put option, stock market, stock market options
Posted in Company Commentary, Sectors | Comments Off
Tuesday, August 17th, 2010
9:00am (EST)
The market ended mixed on Monday as the bulls and bears battled to a draw on what was the second-lightest volume day of the year. The bears held an early advantage as the major indexes dropped nearly 1% after the open but the bulls managed a steady comeback the rest of the day.
As we enter the dog days of summer, we expected volume to dry up, but yesterday’s action wasn’t a good sign if you are bullish. Trading has been light in recent weeks but the bulls will need volume to pick up if they expect to have a sustained rally.
The Dow traded to a low of 10,209 before finishing the day down 1 point at 10,302. We have been mentioning that 10,200 would act as the first layer of support with a possible test of 10,000 should a break below this level occurs. Overhead resistance is at 10,400.
The S&P 500 was up fractionally and settled right where it started the day at which was 1,079. The index traded down to our 1,070 target, making a low of 1,069, which could clear the way for a test of 1,050 again. Short-term resistance remains at 1,100 for the bulls.
The Nasdaq continues to be the most volatile of the major indexes and has been making the bigger moves of late. The index added 8 points to close at 2,181 but touched a low of 2,155. Our near-term targets are 2,150 and then a possible test to 2,050. Tech traded to a high of 2,193 but continues to have trouble with the 2,200 region.
One sector on the move yesterday were the Education stocks which got slammed over regulatory uncertainty. There are concerns the government will impose tighter controls on student loans and Wall Street has been downgrading these stocks in a hurry.
Corinthian Colleges (COCO, $5.22, down $1.44) tanked over 20% and traded 40 million shares, or 10x normal daily volume. The August 7.50 put options (COCO100821P0007500, $2.45, up $.135) zoomed 120% as the stock made a fresh 52-week low.
Strayer Education (STRA, $163.26, down $36.75) got slammed for an 18% loss but the August 155 puts (STRA100821P00155000, $1.75, up $1.20) soared nearly 220%.
Capella Education (CPLA, $60.94, down $9.26) fell 13% but touched a low of $56.44 before rebounding. Now you know why we trade options…
We have been mentioning the Education stocks, specifically, Apollo Group (APOL, $40.98, up $2.04) which bucked the trend yesterday, and their shady business practices for nearly two years now and this bubble is finally popping.
We tried playing options on Apollo back in May and lost 16% after shutting the trade down due to volatility. At the time, shares were at $55 and we knew the stock was setting up to test 52-week lows. We were just a little early at the time but the chart said it all.
The good news is that we took another look at Apollo over the weekend and the selling pressure might not be over. If shares break below $38, we could quickly see a run to the lower $30’s. Currently, the 52-week low is $38.39 and some support should come in at $35, but over the next month or two this stock could lose another 25%.
Futures are pointing towards a slightly higher open despite some less-than-stellar economic news which we will go over this afternoon. Dow futures are higher by 63 points to 10,336 while the S&P 500 futures are up 10 points to 1,087. The Nasdaq 100 futures are showing a 12 point pop and are at 1,832.
Tags: APOL, COCO, CPLA, option picks, stock options trading, STRA
Posted in Company Commentary, Market Analysis, Sectors | 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