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Posts Tagged ‘A123 Systems’

Market Retesting Lows

Tuesday, January 12th, 2010

1:05pm (EST)

The market is testing the lows we got this morning after trying to battle back from a nasty open.  The Dow started with a 72 point loss and fell to a low of 10,591, then recovered most of the losses but is currently down 65 to 11,598.

The S&P 500 is off by 12 points to 1,134 while the Nasdaq is taking one for the team.  The index is down 33, or -1.4%, and is trading at 2,279 as we head to press.

There are pockets of strength and one sector that continues higher is the Casino stocks.  MGM Mirage (MGM, $11.76, up $0.86) is up 8% after getting an upgrade this morning.  Goldman Sachs (GS, $167.43, down $4.13) came out and upped the shares to ”Buy” from “Neutral” and slapped a $16 price target on the stock.  Sorry, Goldman, you are a little late to the party.

Our Atlantic City trip was a win-win as we went behind the scenes to see what was up during the holidays.  We didn’t come away with the feeling that the industry has turned around overnight but we took notice in the action the casinos were getting.

It was good to get away and when we got back, we profiled a trade in Las Vegas Sands (LVS, $18.50, up $0.13) that has paid off in spades.  Last Tuesday, our subscribers placed their bets on some call options and they have nearly doubled their money a week later.  

Las Vegas Sands was under $17 when we told our subscribers ”LVS has been a solid past performer in our portfolio and has a shot at $20 if the casino stocks can rally over the next month or so.”

Folks, here is the power of options if you pick the right ones.  As you can see, the stock has made a $2 move in a week which is 12% from $17 to $19.  If you would have bought 100 shares of the stock it would have cost you $1,700.  Today you would have a $200 profit.  Not bad.

Now, take a look at what options can do for you.  That $1,700 would have bought you 17 call option contracts that were trading for around a $1 last Tuesday.  Today, those same call options are standing at $1.85.

If you do the math, 17 x 1.85 gets us 31.45 which means your $1,700 is now worth $3,145 or 95%.  Hmmm.  An 8% return with the stock or a 95% return by playing options.

We have updated this position in the Members Area…

Another stock we had recent success with is Amazon.com (AMZN, $128.03, down $2.28).  We recently profiled a trade that returned our subscribers over 50% but shares are getting hit again today after touching a high of $142 before the end of 2009.  We caught some of that action on the way up and recommending closing the trade after looking at the charts.  Since then the stock has been torched but has come back down to serious support levels.  We are doing the legwork now to see if there is another trade in Amazon…

Also getting our attention is A123 Systems (AONE, $20.75, up $0.05) which has made a huge bounce of its support areas.  The stock recently made a run from $14 to $23 in a little over a month and we got some of that action as well.  Our subscribers made nearly a 120% return as we had a target of $23-$24 and got out at the top.

See, it does pay to do your homework folks but that is why you have us.  We are still on the fence with A123 but we wouldn’t be surprised to see a quick run back to $23.

That is all we got for today and for those of you who care…Kid Rock at the Borgata in Atlantic City on Valentine’s Day and Jay-Z in March.  Be there or be square!  The Members Area is updated…

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7th Heaven

Tuesday, December 29th, 2009

8:50am (EST)
 
Futures are pointing towards another strong open this morning as the bulls try to make it seven in-a-row.  Dow futures are currently up 26 points, Nasdaq 100 futures are higher by 4.5 while the S&P 500 futures are up 3.3.
 
In pre-market trading, shares of A123 Systems (AONE, $20.87, down $0.20) are at $21.50 and could be active today. 
  
Microsoft (MSFT, $31.17, up $0.17) got an upgrade this morning and is also getting some action.  We knew once shares broke $30 and held that a move to $35 could be in the works. 
 
 
Fannie Mae (FNM, $1.27, up $0.22) and Freddie Mac (FRE, $1.60, up $0.24) got a lift yesterday after remarks that the Treasury could lift limits on financial aid to the companies.  It’s hard to get excited in stocks that are at a buck and there is a reason why these two stocks are so cheap…stay away!
 
We have updated all of our trades this morning and have provided fresh updates.  We would love to hang out but the action is in the Members Area, folks.  Current subscribers, check for the updates…
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Market Flat at Halfway Point

Monday, December 28th, 2009

12:45pm (EST)
 
The market is trading in a tight today as the Dow has drifted within a 35 point range.  Currently, the index is up 11 points to 10,531.  The Nasdaq and S&P 500 are also higher by 5 and 2 points, with the Nasdaq standing in at 2,290 while the S&P 500 is at 1,128.
 

As we expected, volume is light in this holiday-shortened week and traders are looking for clues as to where the market is headed next month.  The data we see coming in is pointing towards a higher market but the devil will be in the details.

MasterCard’s Advisors’ Spending Pulse Holiday report indicated shoppers spent a little more this season as retail sales rose 3.6%, compared with a 2.3% drop in the year-ago period.  We have been mentioning the battle going on between the retailers and online merchants and both seem to be winning with this big turnaround.

Oil is up 95 cents, to $79/ barrel which is helping energy shares.  We are looking for Exxon Mobil (XOM, $69.01, up $0.35) to make a run to over $70 in the next few weeks…

Airline stocks are taking a dive as the U.S. tightened airline security after some idiot smuggled explosives aboard a plan over the weekend.  We aren’t big fans of airlines stocks anyway and we rarely trade the sector but this could curtail business travel on lucrative international routes.

AMR (AMR, $7.75, down $0.39), Delta Air Lines (DAL, $11.25, down $0.52) and JetBlue Airways (JBLU, $5.51, down $0.13) are all tanking today.  These stocks are probably headed lower but we really don’t see an option trade here.

As far as our other option trades, A123 Systems (AONE, $21.35, up $0.28) has moved into positive territory and we are expecting a run to $24 this week.  Meanwhile, General Mills (GIS, $71.46, up $0.51) continues to set 52-week highs.  We will be back in the morning with a full update on all of the trades but continue to hold them.


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Market Rallies On Early Close

Thursday, December 24th, 2009

2:00pm (EST)

Wall Street closed early today and the bulls left us with more presents.  The market finished at new highs for the year as Tech led the way once again.  The Dow moved higher by 53 points and settled at 10,520 while the Nasdaq bolted higher by 16 points and closed at 2,285.  The S&P 500 also closed at new highs for 2009 and is resting at 1,126 (up 6 points for the day) as we get ready for the holidays.

Volume was light as you would expect in a shortened session and has been over the past few weeks but we told you the market would probably have a good week. 

One stock that got some extra Christmas love was A123 Systems (AONE, $21.02, up $1.69).  The stock rallied nearly 10% on no real news and we were hoping that we would close above $20 today.  We got that and then some.

Meanwhile, First Solar (FSLR, $133.80, up $1.22) bounced back after a rough week and looks like it could easily move 10 points up or down next week.  We are still watching for a safe entry point but there are too many headwinds facing us with this one. 

Research In Motion (RIMM, $66.92, down $0.69) continues to look like it wants to cry “Uncle” and we think shares are poised for a steep drop.  It may or may not happen but we are watching for a break below $65 which could take shares back down to the $57-$58 level.  If we break below that, it gets nasty.

We wanted to update the current trades before we head out and they are ready in the Members Area.  We also wanted to wish each and every one of you a very, Merry Christmas. 

We will be back Sunday night with the Weekly Wrap.

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MomentumOptionsTrading.com Newsflash for 12/17/09

Thursday, December 17th, 2009

10:35am (EST)

Folks, we wanted to give you a quick update on a couple of our positions.  We all know it has been a tough market to trade and no matter how much homework we do, we are still at the mercy of the market.  However, if your research is solid, the returns will come.
 
Two trades we wanted to update are A123 Systems (AONE, $20.05, up $1.73) and General Mills (GIS, $69.46, up $1.47).  Current subscribers, check you inbox for the Newsflash or the Members Area for the trade updates.

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