10:05am (EST)

Who needs Facebook?  We have profits to take on one of our current call option trades.  The position has hit a 78% return in just 2 days.  As much as we want to leave the trade open, let’s book some profits as we still have a number of other open trades to play a continued upside move in the market.  Subscribers, check the Members Area for the details and we will be back shortly with our Weekly Wrap New Trades.

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We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter.  Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and went 16-0 for 2011.  For 2012, the newsletter is already off to a 7-0 start.  Sign-up now and receive access instantly to our stock options trading recommendations!

9:00am (EST)

The bulls got sweet news on Wednesday following a good PMI reading out of China and optimism that progress was being made (again) in Greece’s debt talks.  Also in the headlines were Germany’s manufacturing activity numbers which expanded for the first time in 6 months and FaceBook’s upcoming IPO (Initial Public Offering) which could fetch upwards of $5 billion.

The Dow gained 84 points, or 0.7%, to finish at 12,716.  The blue-chips traded up to  a high of 12,784 and fell just short of our 12,800 target. 

The S&P added a dozen points, or 0.9%, to close at 1,324.  The index traded to a peak of 1,330 and closed just outside of our 1,325-1,350 zone.  We continue to say a break above the upper-end of resistance could carry the S&P to 1,375-1,400 over the near-term before we get the pullback in February.

The Nasdaq was higher by 35 points, or 1.2%, and settled at 2,848.  Tech traded to a high of 2,855 and we said to watch for a run to 2,887 which is the 52-week high.  We have been on record since November saying the Nasdaq could make a run to 3,000 and we would love to see it.

We are expecting another busy day today as we have 4 NEW TRADES for our Weekly Wrap and we may be busy with the Daily as we have a few profitable positions we may have to lock in profits.  The Weekly Wrap trades should be released by 10am (EST) and the any other Trades Alerts could come out at any time before our midday update.

As we head to press, futures are showing a slightly higher open and like this:  Dow (+7), S&P (+1), Nasdaq (+2).

Subscribers, check the Members Area for the updates.

12:30pm (EST)

It is always nice to make 100% on an option trade, especially in 2 weeks, but sometimes the market moves just enough to knock you out of a position that you really feel good about.  It is also possible to play a continued run on a stock so it is important to keep it on your Watch List in case shares break to new highs.

We recently did some research work for our Weekly Wrap on Seagate Technology (STX, $25.53, up $4.39) which is soaring today after beating Wall Street’s expectations.  The homework led us to a great opportunity as we saw shares were on a roll and the momentum was building.  On January 6, 2012 we recommended the February 19 calls (STX120218C00019000, $6.50, up $4.20) at 70 cents and we were out at $1.20 and $1.60  a few weeks later which gave us an average selling price of $1.40, or a double from our entry price. 

Here is the chart work we did for the stock:

 We took our eye off the prize because our portfolio is pretty full and we missed today’s move although some of our subscribers who use our Watch List are happy campers.  Shares had stalled at $20 but here are the trades we have kept on our Watch List since last week and our thoughts this morning (quotes are from yesterday’s close):  

Seagate Technology (STX, $21.14, up $0.25)

February 21 calls (STX120218C00021000, $1.05. up $0.05)

March 21 calls (STX120317C00021000, $1.35, up $0.05)

Thoughts:  For those of you in this trade, you are going to get paid today after the company came in with above the bar numbers. 

We said a pop to $22 would come if $20 is cleared but shares could reach $25 on a blue-sky breakout. (END)

Well, the (STX120218C00021000, $4.50. up $3.45) are up over 300% today and the March 21 calls (STX120317C00021000, $4.65, up $3.30) are up nearly 250%.  Obviously, if you are in these trades, lock up profits.  

Of course, we can’t take credit for the trades because we didn’t officially release them again but we can take credit for the 100% return in January for the one we did.  However, we do feel bad for not following through on our research but we are doing cartwheels for the subscribers who do use the Watch List.

We did close five 100+% winners in January and we are close to bagging a big one.  Trust us.

You never know, some of our current trades could take the same path as Seagate Technology.

The bulls are pushing resistance after good news out of China.  We are also hearing rumors that Greece is “hours” away from cutting a deal with its private bond holders.  We have heard this “wolf” cry before but hopefully the European leaders can get a deal done here soon which will bullish for the market.

Currently, the Dow is up 137 points to 12,770 while the S&P 500 is higher by 15 points to 1,327.  The Nasdaq is showing a pop of 33 points to 2,847.

We have some nice pin action on a few trades so let’s go check the tape.  Subscribers, hit the Members Area for the updates.

9:00am (EST)

After an initial pop at the open, the market matched Monday’s action by testing support and spending the rest of Tuesday’s session trying to get back to even.  Following a 3-week rally to start the year, a short-term trading range has developed over the past week-and-a-half which could be decided by Friday.  Economic news, and earnings, could help or hinder both the bears and bulls as we continue to wait patiently for a breakout or breakdown.

The Dow declined 21 points, or 0.2%, to close at 12,632.  The blue-chips reached a high of 12,720 at the open but also fell to a low 12,567 on the weaker-than-expected economic news. 

The S&P 500 slipped a point, or 0.1%, to settle at 1,312.  The index traded up to 1,321 within the first 30 minutes of action but had dropped to 1,306 by lunchtime. 

The Nasdaq edged higher by 2 points, or 0.1%, to end at 2,814.  Tech reached a peak of 2,826 at the start of trading but slipped to a low of 2,798 intraday.

Amazon.com (AMZN, $194.44, up $2.29) announced their numbers after the close last night, but unlike Apple (AAPL, $456.26, up $3.25), they failed to crush Wall Street’s estimates and actually came up a little short.

The company posted a profit of $177 million, or 38 cents a share, on revenue of $17.4 billion.  The suit-and-ties were looking for 17 cents a share on sales of $18.25 billion. 

Looking ahead, Amazon also came in a little light on their forecast for the current quarter after predicting revenues in a range of $12-$13.4 billion versus expectations for $13.4 billion.

Shares were whacked in after-hours trading last night after dropping $17 to $177, or down 9%.  This morning, in pre-market action, shares are at $175, down $19.

As we head to press, Dow futures are up 81 points to 12,658 while the S&P 500 futures are higher by 8 points to 1,316.  The Nasdaq futures are off by 11 points to 2,475.

We have a lot to cover this morning, including some chart work for one of our current trades so let’s get on it.  Subscribers, check the Members Area for the updates.

12:45pm (EST)

The bulls were making a push towards resistance on renewed optimism that a deal with Greek bondholders and euro zone officials could be reached but got stymied by worse-than-expected economic news.  The headlines were “negative” due to the misses but the numbers were still pretty good for the most part despite what the talking heads are saying.

The Case/Shiller 20-City Home Price Index fell 3.7% in November while the Chicago Purchasing Managers report showed a reading of 60.2 versus expectations for a reading of 63.  Meanwhile, Consumer Confidence came in at 61.1 versus a forecast for print of 68.  These are solid numbers but the market isn’t seeing that way, yet.

As a result, the bears saw a little daylight to push support one last time.  While there remains a ton of headline risk this week, we still need to be cautious of a pullback although we are hoping the bulls make one last push towards the 52-week highs.

We can afford to be a little aggressive due to our incredible month but we are taking smaller positions in case the bears crack a couple layers of support. 

The Financial stocks have turned positive which is a good sign as the Financial Select Spiders (XLF, $14.15, up $0.05) are trying to hold support and make another push at resistance which is up ahead at $14.50.

As we head to press, the Dow is down 56 points to 12,597 while the S&P is off by 3 points to 1,309.  The Nasdaq is lower by 7 points to 2,805.

We are adding 1 more NEW TRADE today so we have to roll. 

Subscribers, please check the Members Area for the updates.  Also, today is the last day to take advantage of our special offer to get the Daily and Weekly publications for one low price.  We are also including our options trading manual, How to Trade Options on Momentum Stocks, at no charge.  This package comes with bi-monthly videos that show you how to read charts and find trades. 

We have set up a special tab on our subscription page where you will see both the Daily and the Weekly in a package deal that reads Annual Subscription to Daily and Weekly Wrap. You will not need a coupon for this deal and the savings are over 65%.  The tab will be removed on Wednesday.

https://secure.momentumoptionstrading.com/amember/signup.php

Do the paperwork and we will send out our option trading course to you as soon as we get your order and provide you access to our videos right away.

We will be back in the morning with our next update.