The Dow started the month at 13,096 and the week at 13,009. The S&P was at 1,412 and 1,409 to start November and the week. The Nasdaq ended October at 2,977 while starting the week at 2,966.
Currently the Dow is down 15 points to 13,006 while the S&P is lower by 2 points to 1,413. The Nasdaq is showing a decline of 7 points to 3,005.
We talked about the bearishness of the last trading day of November over the past 15 years and that the chances of the market ending lower today was running at 75%. However, there is a bullish case for the last trading day of November during election years as the market has advanced 5 out of the last 6 election years.
Given this week’s action, it appears we could be locked into a trading range for a few weeks and we will have the charts for you on Monday.
We mentioned yesterday that our Track Record is 10-4 since late September and we are closing another trade today for a 45% profit. We still like all of our current trades but we want to continue to keep our portfolio light until we get a clear trend in the market.
As we close out November, we are looking for an exciting December that is normally a bullish month for the market. Our Track Record for 2012 is 147-54, or a 73% win rate, including the Weekly Wrap which is 26-0. Our portfolio is showing a tremendous profit for the year (up a staggering 760%!) and is proof of the hard work we do and the long hours put in to do the research.
We often hear how the Average Joe can’t make money in the market, or they got robbed on an IPO, or were left holding the bag on some other stock. Well, the problem is the Average Joe doesn’t do homework and he doesn’t do research or read charts. Our point is, trading the market for a month or two will never bring you long-term success but is possible to make an incredible amount of money if you do the homework – which is why you have us.
Option trading is risky and it should only be used with speculative accounts. Options require you to predict where a stock will be within a certain amount of time which is one of the hardest predictions to make on a daily basis. An option trader who picks 55% of his trades right will have a successful year and is considered a “pro” by Wall Street’s standards. The same with a professional gambler betting on football or basketball.
If you make the same bets in equal amounts it takes the emotion out of going overboard on one trade hoping to hit the homerun. The key is to hit a lot of singles and doubles along with the three-run dingers or grand slams. You will the occasional strikeout and a bad month here and there but if you are confident in your abilities then making money in the market is easy.
Our Weekly Wrap portfolio covers an array of companies, from small-caps to big-caps, and over the years we have profiled some incredible opportunities. We like to own solid stocks that can return us double-digit returns on a monthly basis. One of our covered calls trades returned over 100% this year. Since inception, this newsletter is 42-0.
We will be back Sunday night with our Weekly Wrap and Monday morning with our Daily. We will also update our Watch List for possible new trades. Until then, have a great weekend everyone.