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Thursday, October 27th, 2011
12:40pm (EST)
Futures were pointing towards a jailbreak by the bulls this morning and the market is soaring after Europe came through with a “plan”. We knew things could get ugly during yesterday’s EU summit meeting but little did we know punches would be thrown. Of course, tensions build when you put 17 people in a room with the weight of the world, literally, on their shoulders.
We mentioned the talking heads and slick talking Wall Street analysts were calling for a pullback into yesterday’s close but they failed to read the charts and underestimated the wheeling-and-dealing the Europeans are capable of. When push came to shove, the EU leaders worked late into the night and finally came up with a game plan.
To dummy things down, the EU leaders proposed 3 actions and they were: a reduction in Greece’s current debt; a recapitalization of the region’s banks so they can absorb the hit, or losses, from Greece’s bonds; and the reinforcement of the bailout fund which was raised to $1.4 trillion.
Add it all up and you get a huge rally past resistance and a big smile on our faces since we are in a ton of call options.
The Dow is surging 310 points to 12,178 while the S&P 500 is zooming 36 points to 1,277. The Nasdaq has easily cleared 2,700 and is soaring 73 points, to 2,724. The price targets we listed on Sunday night/ Monday morning are in play as our crystal ball continues to nail this market’s pivot points. The S&P Volatility index (VIX, ^VIX, 25.17, down 4.69) is down 15% and we said to look for a drop to 22 once the bulls took out the 30 level.
We have been busy today and we said we would be ringing the register a lot this morning. October has been an incredible month for us but we have been hot since early September and we expect our roll to continue for the rest of the year.
With the market right near our upper-end targets and with the weekend almost upon us, we can’t wait to do the homework to see where this indexes are really headed!
Subscribers, check the Members Area for the updates and stay on the lookout for either new trades or possible profit alerts as this market continues to treat us like gold.
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 Company Commentary, Market Commentary, VIX | Comments Off
Monday, October 24th, 2011
9:00am (EST)
The bulls were riding a 2-week winning streak and looked determined to make it 3-in-a-row coming into Monday’s session which has been a bullish day, historically, during the week of October expiration week. The bears had their own plans and were trying to hold the top of the current trading range after the bulls pushed resistance on Friday.
Needless to say, the market fell back into its pattern following Monday’s 2% drop as Germany came to the bears rescue. There was a lot of hype from the previous weekend that Europe was speeding up “the plan” to have something in place to deal with its debt crisis but Germany seems to think the top brass is struggling to come up with a comprehensive plan capable of stabilizing the region. Although the drubbing was unexpected, the bulls did manage to hold the first wave of support.
Tuesday started off sketchy as the bears had some follow-through momentum, but the bulls battled back by halftime and used a huge rally of their own to “stretch” resistance. The Dow was able to close above 11,600 while the S&P 500 closed right on our 1,225 target after kissing a high of 1,233. The Nasdaq was above 2,650 and had Apple (AAPL, $392.87, down $2.44) on deck.
What we thought was going to be a good Wednesday turned into a drubbing for Tech after Apple came up short versus Wall Street’s expectations. Shares fell 6% on the day and finished below $400 after the company posted a rare miss in their quarterly profits. The Nasdaq was able to hold 2,600 while the S&P held 1,200 which were signs the bulls still wanted to push the action.
Thursday’s action was mixed but the volatility remained despite great corporate earnings and in-line jobless claims. The Dow traded in a 200-point range but ended higher while the S&P dipped below 1,200 but held and ended higher. The Nasdaq slipped a six-pack and closed below 2,600 but we said not to worry.
Going into Friday’s session, we had a good feeling about the day. The Doors were jamming in the background as we headed to press and all that was left was to “break on through to other side”….
The Dow surged 267 points, or 2.3%, to settle at 11,808. The blue-chips tested 11,600 all week and our target was 11,800 (blue line, black circles). With Friday’s close, it would be hard to imagine the bulls not at least kissing 12,000 which is home of the 200-day moving average. If this level is penetrated then the bulls could make a quick run to 12,200 (orange line, purple circles). Short-term support is now 11,600 with 11,350 (green line, brown circles) providing backup. The Dow was at 11,644 to start the week and added 164 points, or 1.4%. For the year, the index is up 231 points, or 2%…
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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 Market Analysis, Market Commentary, VIX | Comments Off
Wednesday, October 19th, 2011
9:00am (EST)
“We could have a short-covering rally into the close so buckle-up”.
Those were our famous last words from Tuesday’s tidbits…
We said yesterday we had high expectations for the week and we were disappointed with the start but the bulls got back on track following Monday’s spanking. The open on Tuesday didn’t look promising as the bears easily penetrated our first wave of downside targets. However, as we were watching support, the charts, and the VIX, we had a good feeling the bulls would hold down the fort so we added a couple of new positions.
Although we wouldn’t considering Tuesday’s pop a “breakout”, the price action is still higher despite those who want to short this market. We haven’t heard any “uncle’s”, yet, but the bears were close to saying it as their knuckles turned redder into the close.
The Dow surged 180 points, or 1.6%, to close at 11,577. After touching a low of 11,296, the blue-chips turned on a dime and traded to a high of 11,652 into the close. If the index can close above 11,600, it should clear the way for a quick run to 11,800 while 11,350 remains short-term support.
The S&P 500 added 25 points, or 2%, to settle at 1,225. The index briefly dipped below the 1,200 level and kissed 1,191 before rebounding to a high of 1,233. The S&P closed right on our first upside target and the move above 1,225 intraday suggests the bulls are still eyeing 1,250-1,275 over the near-term. Support remains at 1,200-1,190 with 1,175 providing backup.
The Nasdaq jumped 43 points, or 1.6%, to end at 2,657. Tech easily held the 2,600 level after touching a low of 2,586 while the high was 2,667. Resistance is at 2,675-2,700 while short-term support remains 2,600-2,575.
The S&P Volatility Index (VIX, 31.56. down 1.83) traded to a high of 34.71 and came into the week at 28. We mentioned in our Weekly Wrap the bulls would be trying to keep the VIX below 30 as we see the low 20’s coming into play on a continued rally. However, volatility hasn’t gone away and what normally takes weeks for something to play out is now only taking days.
Of course, all of this is yesterday news and the bulls have a fresh set of challenges ahead of themselves today. After the closing bell last night, Apple (AAPL, $422.24, up $2.25) shocked Wall Street with a rare earnings miss. However, Intel (INTC, $23.40, up $0.12) announced another outstanding quarter while Yahoo (YHOO, $15.47, down $0.23) and Juniper Networks (JNPR, $21.41, up $1.01) also beat expectations.
We will have more on these stories in our afternoon update.
Futures are mixed and pointing towards a slightly lower open as Apple is heavily weighted in some of the major indexes. Dow futures are up 2 points to 11,528 while S&P 500 futures are lower by 2 points to 1,221. Nasdaq futures are off 14 points to 2,350.
Tags: Dow Futures, option alerts, option trading, option trading services, options momentum trading, options on stock, options trading, options trading service, stock option trade, trade in options, VIX, weekly options trading
Posted in Earnings, VIX, Yahoo / Microsoft | Comments Off
Thursday, October 13th, 2011
9:15am (EST)
It was a great day to be long as we were able to score our 11th straight winning option trade yesterday. The talking heads and fund managers keep telling you we are in a bear market but we told you back in August this would be one of the best times in a couple of years to trade options. We have also nailed the current trading range which has helped produce some massive profits for our subscribers and we are here to tell you – we are just getting started. Folks, we continue believe that the next 3 months, maybe longer, will provide some exciting opportunities so don’t miss the bus.
The Dow added 102 points, or 0.9%, to close at 11,518. The blue-chips traded to a high of 11,625 but were unable to close above our near-term target of 11,600. We said in our Weekly Wrap there was a chance at 11,800 on a close above this level but we also realize we are at the top of a trading range that has been ongoing since August. Support is strong at 11,350 and then 11,200 if the Dow fades from here.
The S&P 500 gained a dozen points, or 1%, to finish at 1,207. The index made a powerful move above our near-term target of 1,200 and traded to a high of 1,220. We said a run to 1,225 could be in the mix this week. Short-term support lies at 1,175-1,150 but the bulls could push 1,250 on short covering.
The Nasdaq advanced 22 points, or 0.8%, to settle at 2,605. We were hoping for a close above 2,600 as Tech traded to a high of 2,629 and we got it. We talked about this level on Sunday night and in our videos for the trading course and said this would be another bullish sign as they try to push 2,650 next while the bears take aim at 2,550.
We have also been talking a lot about the S&P 500 Volatility Index (VIX, 31.26, down 1.60) and the trading range it has been in just like the major indexes. The VIX has traded between 30 and 40 since August and has been stretched at times but we have said the index was headed below 30 which is…a bullish sign.
We have a lot to talk about in our Members Area and we have moved up some stops to protect our profits. There are a few trades on our Watch List we might put into action. Our Watch List has been just as hot as there have been a number of winning trades we have profiled over the last few months that weren’t official trades.
Oh, the other point we want to make is this. Our portfolio’s show money in and money out on all of our trades so here is the point we want to make. The 2011 portfolio shows an overall gain of 22% which is incredible in itself given the market conditions we have been through this year. However, if you started with $10,000 back in January you would be up nearly 250% if you have taken all of our trades. If you started with us 4 years ago you are should be halfway to a million if you started with 10K. This is how powerful options are. Seriously.
For those of you who have day jobs and can’t follow us all day long, remember, we have auto-trading partners that do the trading for you. When we send out a trade, they get the exact email you do and our trades are entered accordingly. The brokers we have are great at getting our limit orders filled and sometimes they even get better prices on the trades we enter. They also provide proof that our track records and trades are the real deal. The best part about auto-trading is that it doesn’t cost anything to sign up! To read more about our partners, click here.
Futures are pointing towards a slow start this morning. Dow futures are down 22 points, while the S&P futures are off 4 points. Nasdaq futures are up a point. Subscribers, check the Members Area for the updates and stay alert for a possible new trade today.
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, VIX | Comments Off
Friday, September 30th, 2011
1:10pm (EST)
The bulls are looking to rebound from last week’s selloff and went into today’s session holding a slight lead for the week although Tech has been flat. The market was showing a loss of 1% across the board at the open as the bears are trying to hold the bulls under the first wave of resistance.
The Dow started the week at 10,771 and is currently down 70 points to 11,083. The bulls will be trying to hold the 11,000 level into the close while the bears will try to push 10,800. If the index falls below 10,577, or our 10,600 target which is the next wave of support afterwards, it will represent a 1,000 point drop for the year.
The S&P 500 was at 1,136 before Monday’s opening bell and is lower by 12 points to 1,148. The index is down nearly 10% YTD and the bulls are trying to close above 1,150 before the weekend. We have said our bear market target is 1,090 and a close below 1,125 would seriously bring this level into play.
The Nasdaq began the week at 2,483 and is showing a decline of 25 points to 2,455. We mentioned Sunday night in our Weekly Wrap there was a good possibility 2,400 would enter the picture on further weakness and continued failure at 2,500. The bulls will be trying to hold 2,450 into the close but we have also been warning of a possible test down to 2,300 since mid-August which would represent a 20% correction from the April highs.
The S&P Volatility Index (^VIX, 40.25, up 1.41) popped above 43 on Monday and hit a high of 42 yesterday. We said in our Weekly Wrap if there is a continued selloff, the VIX could reach the 50’s. Today, the VIX has traded to a high of 41.46.
We wanted to bring next week into focus before the talking heads do because nobody is mentioning it right now.
Three years ago, the Dow fell 1,875 points during the first full week of October, or 18%. It was the worst week in the Dow’s HISTORY. We all know history likes to repeat itself but that theory doesn’t always hold true in the stock market and can be expensive if you are wrong.
Although we feel the market is oversold at current levels, stocks can get cheaper and PE’s can get down to single-digits before a bottom is hit. The first trading day in October has been heavy on the indexes in 4 of the last 5 years and if the market closes lower today then the odds are even greater we test new lows before the selling pressure is over.
We will cover more of this in the Weekly Wrap on Sunday night and some other tidbits worth noting as we look ahead to the fourth quarter. Companies will start reporting 3Q earnings in a few weeks and we finally have a deadline, or hard date, with Greece’s fate on if they get another bailout or not. All of the headline news will be front-and-center in mid-October so these may be the two catalysts that can get the market out of its current 2-month trading range one way or another.
We have put in a good week and have been quick to take profits when we can. We expect that trend to continue but once the market bottoms there will be plenty of stocks on sale to where we can use longer-term call options.
Subscribers, check the Members Area for the important updates. After locking in 74% this morning on one of our current trades, we are closing HALF on another trade that is up 55% in less than 24 hours as well! Winner, winner, chicken dinner…
We will be back Sunday night with the Weekly Wrap so until then, have a great weekend!
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, VIX | Comments Off
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Bulls Blow-off Steam
Thursday, October 27th, 2011
12:40pm (EST)
Futures were pointing towards a jailbreak by the bulls this morning and the market is soaring after Europe came through with a “plan”. We knew things could get ugly during yesterday’s EU summit meeting but little did we know punches would be thrown. Of course, tensions build when you put 17 people in a room with the weight of the world, literally, on their shoulders.
We mentioned the talking heads and slick talking Wall Street analysts were calling for a pullback into yesterday’s close but they failed to read the charts and underestimated the wheeling-and-dealing the Europeans are capable of. When push came to shove, the EU leaders worked late into the night and finally came up with a game plan.
To dummy things down, the EU leaders proposed 3 actions and they were: a reduction in Greece’s current debt; a recapitalization of the region’s banks so they can absorb the hit, or losses, from Greece’s bonds; and the reinforcement of the bailout fund which was raised to $1.4 trillion.
Add it all up and you get a huge rally past resistance and a big smile on our faces since we are in a ton of call options.
The Dow is surging 310 points to 12,178 while the S&P 500 is zooming 36 points to 1,277. The Nasdaq has easily cleared 2,700 and is soaring 73 points, to 2,724. The price targets we listed on Sunday night/ Monday morning are in play as our crystal ball continues to nail this market’s pivot points. The S&P Volatility index (VIX, ^VIX, 25.17, down 4.69) is down 15% and we said to look for a drop to 22 once the bulls took out the 30 level.
We have been busy today and we said we would be ringing the register a lot this morning. October has been an incredible month for us but we have been hot since early September and we expect our roll to continue for the rest of the year.
With the market right near our upper-end targets and with the weekend almost upon us, we can’t wait to do the homework to see where this indexes are really headed!
Subscribers, check the Members Area for the updates and stay on the lookout for either new trades or possible profit alerts as this market continues to treat us like gold.
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 Company Commentary, Market Commentary, VIX | Comments Off