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Wednesday, March 21st, 2012
9:00am (EST)
The bears snapped a 3-session losing streak on Tuesday as the bulls were unable to recover from the ambush at the open. Futures were weak as we headed to press so we knew it was going to be an uphill battle to get back to even. The blue-chips fell triple-digits at one point but the strength in Tech (and the Financial stocks) helped keep losses in check despite worries of a “hard landing” for China.
The Dow dropped 69 points, or 0.5%, to finish at 13,170. The index fell just below near-term support at 13,200 and we can imagine Wall Street traders getting nervous if we edge back down to 13,000. Yesterday’s low was 13,123. One bright spot was Bank of America (BAC, $9.81, up $0.28) which is a current covered call trade of ours for the Weekly Wrap. Shares pushed double-digits again after reaching a high of $9.97 yesterday. We started recommending shares at $5 back in December.
The S&P 500 slipped 4 points, or 0.3%, to close at 1,405. The index traded down to 1,397 on the open but was able to reclaim 1,400 by the close. There is further risk down to 1,375 but 1,425-1,450 is still in play.
The Nasdaq declined 4 points, or 0.1%, to settle at 3,074. Tech battled back from a low of 3,050 which was a nice round number and further support is at 3,000 should the bears keep the pressure on. We still believe the bulls will make a run at 3,250 before a pullback comes and yesterday’s action off the lows was encouraging which shows the bulls resiliency.
We still see a few choppy sessions ahead of us but if the bulls can get through March, we could see a big April with our near-term targets for the indexes being achieved. Remember, we said the back half of March is usually bearish with the first half bullish and so far the market is following that script. Our homework over the weekend showed any pullback we get could be mild before the market sets new 52-week highs in April (or sooner).
Futures are mixed as we head to press and look like this: Dow (+9); S&P 500 (+1); Nasdaq 100 (-2).
We have a NEW TRADE that we are spreading out to play longer-term options on so our goal is to get these options at the open. These are “cheap” out-of-the-money calls on a stock we feel is going to explode at some point this year.
Subscribers, check the Members Area for the specific trade instructions and why we like this trade a ton.
Tags: bac, Bank of America call options, bearish stocks, bullish stocks
Posted in Financial Stocks, Market Analysis, Trade Update | Comments Off
Friday, March 16th, 2012
12:55pm (EST)
Tomorrow is St. Patty’s Day and the bulls are trying to add some more green to this week’s gains. We have a lot to cover so let’s go over the numbers real quick.
The Dow is up 2 points to 13,255 while the S&P is higher by 2 points to 1,404. The Nasdaq is also up 2 points to 3,059. Maybe we should play 222 as a “pick 3” today as hot as we have been.
Here is a quick update for our portfolios.
This week has been one of our best week’s ever for the Daily publication. We are currently nursing open trades of 428%, 308%, and 118% to go along with the 35 winning trades we have closed for 2012.
We have been able to turn a $10,000 trading account into over $40,000 which is a return of over 300%. We seriously doubt any other option newsletter can match our results so far this year.
Not only have we had an incredible week for our Daily newsletter, our Weekly Wrap quietly continues to perform beyond our wildest expectations. We are on track to close up to 7 double-digit winners by the closing bell as the March options expire today. Take a look at the profits that could be coming our way if shares hold above the current strike price on the options we have sold.
magicJack VocalTec (CALL, $25.19, up $1.00) +19%
Bank of America (BAC, $9.58, up $0.34) +20%
Vivus (VVUS, $20.34, up $0.20) +38%
Alcoa (AA, $10.56, up $0.21) +17%
Symantec (SYMC, $18.11, down $0.09) +16%
Solazyme (SZYM, $15.66, down $0.19) +55%
MGM Resorts (MGM, $14.44, down $0.27) +13%
This will bring our 2012 Closed Trades for the Weekly Wrap to 19-0. If we include last year’s 16-0 mark, we could be 35-0 since started the newsletter a little over a year ago. Remember, our goal is to bring you solid double-digit profits every month with this publication no matter what the market is doing. If you can hit 5 winning trades for 20% or more you will double your money. The aforementioned covered call winners would have done just that for you.
We will give you our full track record this weekend as we are squaring-up a number of positions today. We did take a few hits on a few aggressive earnings trades but overall we should be 55-10 thru the first 3 months of 2012. Please note, and this is super important, we do not count half or quarter winning trades 2, 3, and 4 times. There are many option services that do this. If we did, our track record would be 85-10.
Other newsletters will also double down and tell you to buy more of a position if it is down and then they will average their cost down. However, if the trade is a loser, they will only count it once.
The bottom line is that most investment newsletters don’t have a track record because they give you so many trades hoping to hit on a few and they don’t trade their own account. They brag about the winners but won’t mention the losers.
We have auto-trading partners which verify our results and you can always request our current 2012 Track record by sending us an email if you are not a current subscriber.
Our reputation is built on trust and all of our trades are done in real time and are time dated. Our auto-trading partners get great fill prices on all of our trades for your account and your order is placed the instant our Trade Alerts go out. If you are a busy professional and can’t watch the market all day long, let our brokers do the work for you.
The reason we are telling you all of this is because we have been tired of listening to the Wall Street “pros” and talking heads that have gotten this market wrong and when it does crash they will tell you they were right. However, if and when there is a selloff, don’t get nervous. Remember, we can make just as much money to the downside as we can the upside. Just take a look at our 2008 portfolio, especially some of the returns on the Financial stock option trades.
We have a busy weekend ahead of us but the good news is our portfolio is light for both our Daily and Weekly Wrap which means we are ready to start our next batch of 50 trades. We will let the charts tell us which way the market is headed instead of trying to guess and wait for a pullback. The trend has been higher since the August lows and we have outlined clear support levels to watch for if there is a trend change. Until then, the trend is our friend.
We will be back Sunday night with the Weekly Wrap and we have updated our current trades one last time. Until then, have a great weekend everyone!
(Remember, we just ran a special for our Weekly Wrap so if you would like a 3-month trial at a 50% discount, please send us an email.)
Tags: AA, bac, CALL, Covered Calls, VVUS
Posted in Covered Calls, Hot Stocks, Money Management, Option Trades | Comments Off
Tuesday, February 14th, 2012
9:00am (EST)
The bulls recovered most of Friday’s drubbing with a strong session on Monday as the market overlooked the uprising in Greece and cheered a proposed bailout which could get approved by Wednesday.
Of course, with so much money-printing, bond swapping, and reshuffling funds here and there, it all boils down to an orderly default for Greece sooner or later and that is what the market is seeing.
The Dow gained 73 points, or 0.6%, to end at 12,874. The blue-chips reached a high of 12,887 but fell short of last week’s 52-week high of 12,924. The bulls have been throwing darts at Dow 13,000 and are still looking for the “eye”. Get it?
The S&P 500 added 9 points, or 0.7%, to finish at 1,351. The index kissed a high of 1,353 and the bulls will be trying for the second time to hold our 1,350 close which we said could lead to 1,375-1,400 over the near-term. The bears are still trying to get under 1,330-1,325.
The Nasdaq advanced 28 points, or 1%, and settled at 2,931. Tech set another 52-week high yesterday by reaching 2,733 and the close was higher than last week’s peak at 2,930. We mentioned back in November the Nasdaq could swell to 3,000 before taking a breather and we are only 2% away. A 2% move the other way would put the index back at 2,875 and we mentioned a “gap down” on the chart (see notes from Sunday night’s Weekly Wrap or yesterday’s Daily) would lead to 2,850 which is a 3% move.
The Financial stocks showed some muscle on Monday as Bank of America (BAC, $8.25, up $0.18) and JP Morgan Chase (JPM, $38.30, up $0.69) posted 2% gains, on average.
Isn’t it funny how nobody on Wall Street likes the Financial sector? In fact, they haven’t liked it for months and they told you to steer clear of the Banks while they went away on vacation before Christmas. When they came back in January the suit-and-ties were still wishy-washy.
Not us, we were like Captain Stubing on the Love Boat and were giddy that Bank of America was at $5.
We were pounding the table in our Weekly Wrap for our subscribers to pick up shares right before Christmas at $5.35 and Bank of America would be at double-digits sometime in 2012. In mid-January, we told our subscribers to pick up more at $6.75. We will likely get “called away” from our positions if current prices hold up for nice double-digit gains in March and April as the chart shows little resistance to $10.
We’re pretty sure if Bank of America ever drops to $5 again those same knuckleheads will tell you it’s time to get in. It appears they may not get that chance though. They might at $7, but not at $5.
As we head to press, futures are showing a lower open and look like this; Dow (-21), S&P 500 (-4), Nasdaq (-6). We may be active today with some of our current trades and there are a couple possible plays on our Watch List we are starting to like. We have included a chart for one of them this morning to show you the recent breakout.
Subscribers, check the Members Area for the updates.
Tags: bac, blue-chip stocks
Posted in Financial Stocks, Market Analysis, Market Commentary | Comments Off
Thursday, February 9th, 2012
1:05pm (EST)
The bulls and bears have traded blows for much of the session as the market has had a bevy of headlines to deal with today. The indexes have traded in a tight range once again and got off to good start after Initial Claims came in at 358,000 versus expectations for a print of 370,000. Continuing Claims came in at 3.5 million which pretty much matched expectations.
Shortly after the open, there was news out that Greece and the European Union have agreed to a level of budget cuts that will give the country another bailout. This will help Greece with their debt payments next month but we doubt the drama is over as the country is expecting riots this weekend.
The lack of details though has caused the market to pull back from its highs but the bulls are holding court as we head into the second half of trading.
Elsewhere, Obama just announced the government has reached a $26 billion settlement over shady foreclosure practices with the five largest mortgage service providers. Ally Financial, Bank of America (BAC, $8.23, up $0.10), Citigroup (C, $34.08, down $0.15), JPMorgan Chase (JPM, $38.00, down $0.30) and Wells Fargo (WFC, $30.43, down $0.23) are all trading slightly lower with the exception being BAC.
As we head to press, the Dow is up 27 points to 12,910 while the S&P 500 is higher by 3 points to 1,353. The Nasdaq is showing a gain of 10 points and is at 2,926.
We currently have a Bank of America call option trade that we entered on Monday which is nearing a 50% return so let’s go lock-in some more profits! Subscribers, check the Members Area for the details and we will be back in the morning with our next update.
Tags: bac, Bank of America call options, c, JPM, wfc
Posted in Financial Stocks, Market Analysis, Market Commentary | Comments Off
Wednesday, September 7th, 2011
9:00am (EST)
The bulls and bears each had their 15 minutes of fame on Tuesday but it was the grizzlies who got the better of Wall Street.
Following a 3-day weekend, the bears were back in the driver’s seat as they won their 3rd straight session as more concerns from overseas helped drag the market lower. Of course, the global reaction on the U.S. jobs front from last Friday had a lingering affect to start yesterday’s trading but more protests in Italy and the nation’s pending austerity measures also caused some nervousness.
Futures were already pointing towards a nasty open and we knew once the market started trading our downside targets would be tested. In fact, with futures spiraling out of control before the bell on Europe’s selloff, the NYSE actually invoked Rule 48 which could have led to a delayed open or “reopening” on a halt. This is usually done to speed up and help facilitate trading during highly volatile days. However, things went smooth so the story was never really mentioned by the talking heads.
The Dow easily took out the 11,000 level at the start of trading and fell to a low of 10,932, down 306 points, within 15 minutes. The blue-chips surged to the upside in the final 15 minutes of trading which helped cut the losses to less than half but the index still fell 100 points, or 0.9%, to end at 11,139. We mentioned strong support at 10,800 which remains support if 11K doesn’t hold while 11,200 then 11,350 are near-term resistance levels.
Side Note: The Financial stocks got hammered and have backed off their recent highs. Two blue-chippers, Bank of America (BAC, $6.99, down $0.26) and JPMorgan Chase (JPM, $33.44, down $1.19), each fell aver 3% and are either getting “attractive” again -or- there is more damage to be done. We are trying to get BAC into our Weekly Wrap portfolio for $5 (or less) but still don’t see the rush to add the stock. However, it’s great for day trading…
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Tags: bac, bears, blue-chip stocks, bulls, Dow, Dow quotes, gold quotes, JPM, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, VIX
Posted in Market Analysis, Market Commentary, Trading Tips | Comments Off
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Tech, Financial Stocks Still Showing Strength
Tuesday, February 14th, 2012
9:00am (EST)
The bulls recovered most of Friday’s drubbing with a strong session on Monday as the market overlooked the uprising in Greece and cheered a proposed bailout which could get approved by Wednesday.
Of course, with so much money-printing, bond swapping, and reshuffling funds here and there, it all boils down to an orderly default for Greece sooner or later and that is what the market is seeing.
The Dow gained 73 points, or 0.6%, to end at 12,874. The blue-chips reached a high of 12,887 but fell short of last week’s 52-week high of 12,924. The bulls have been throwing darts at Dow 13,000 and are still looking for the “eye”. Get it?
The S&P 500 added 9 points, or 0.7%, to finish at 1,351. The index kissed a high of 1,353 and the bulls will be trying for the second time to hold our 1,350 close which we said could lead to 1,375-1,400 over the near-term. The bears are still trying to get under 1,330-1,325.
The Nasdaq advanced 28 points, or 1%, and settled at 2,931. Tech set another 52-week high yesterday by reaching 2,733 and the close was higher than last week’s peak at 2,930. We mentioned back in November the Nasdaq could swell to 3,000 before taking a breather and we are only 2% away. A 2% move the other way would put the index back at 2,875 and we mentioned a “gap down” on the chart (see notes from Sunday night’s Weekly Wrap or yesterday’s Daily) would lead to 2,850 which is a 3% move.
The Financial stocks showed some muscle on Monday as Bank of America (BAC, $8.25, up $0.18) and JP Morgan Chase (JPM, $38.30, up $0.69) posted 2% gains, on average.
Isn’t it funny how nobody on Wall Street likes the Financial sector? In fact, they haven’t liked it for months and they told you to steer clear of the Banks while they went away on vacation before Christmas. When they came back in January the suit-and-ties were still wishy-washy.
Not us, we were like Captain Stubing on the Love Boat and were giddy that Bank of America was at $5.
We were pounding the table in our Weekly Wrap for our subscribers to pick up shares right before Christmas at $5.35 and Bank of America would be at double-digits sometime in 2012. In mid-January, we told our subscribers to pick up more at $6.75. We will likely get “called away” from our positions if current prices hold up for nice double-digit gains in March and April as the chart shows little resistance to $10.
We’re pretty sure if Bank of America ever drops to $5 again those same knuckleheads will tell you it’s time to get in. It appears they may not get that chance though. They might at $7, but not at $5.
As we head to press, futures are showing a lower open and look like this; Dow (-21), S&P 500 (-4), Nasdaq (-6). We may be active today with some of our current trades and there are a couple possible plays on our Watch List we are starting to like. We have included a chart for one of them this morning to show you the recent breakout.
Subscribers, check the Members Area for the updates.
Tags: bac, blue-chip stocks
Posted in Financial Stocks, Market Analysis, Market Commentary | Comments Off