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Late Day Rally Pushes October Resistance

Wednesday, November 9th, 2011

8:45am (EST)

Europe’s head honcho’s are falling faster than dominoes as Greece’s Prime Minster dropped first followed by Italy’s – once their austerity budgets pass. Unfortunately, the US will have to wait until 2012 to get some new knuckleheads in office but hopefully they are business people who can create jobs. In any event, we mentioned yesterday in our midday update the action has been hot in the afternoon and the bulls plowed ahead right on cue.

The Dow rolled higher by 102 points, or 0.8%, to finish at 12,170. The index reached a peak of 12,187 and we said to watch for a run to 12,200 first, followed by 12,350.

The S&P jumped 15 points, or 1.2%, and closed at 1,275-and change. The high was 1,277 and we penciled-in 1,300 Sunday night/ Monday morning in our Weekly Wrap.

The Nasdaq popped 32 points, or 1.2%, to settle at 2,727. We said a run to 2,750 was possible this week and we are halfway there – with the bears living on a prayer.

The push to the next layer of resistance was nice but futures are pointing towards a nasty open this morning which means we will test support again. We had 2 new trades we were looking to get into this morning but let’s see how the action plays out.

Also, be on the lookout for possible Trade Alerts if we close any current recommendations or need to make any adjustments. For those of you who are trading course members, we did a video late last night that is 25 minutes long so we wanted to send today’s morning issue out a little early so you have plenty of time to prepare for today’s action.

As we head to press, here’s the deal: Dow futures (-223); S&P 500 futures (-30); Nasdaq 100 futures (-45).

Tags: bear market, bears, blue-chip stocks, bulls, Dow, Dow quotes, gold quotes, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, VIX
Posted in Market Analysis, Market Commentary | Comments Off

Market Slightly Up as Bulls Take Breather

Tuesday, November 8th, 2011

2:10pm (EST)

The action today has been mixed as the bulls took the early lead to push the market higher while the bears are playing catch-up. Wall Street seemed a little uneasy this morning as traders waited on a key vote in Italy’s parliament which ousted its Prime Minister. Silvio Berlusconi, who has a history of shady doings and dealings and he isn’t seen in the brightest light, failed to win an absolute majority which was really no big surprise – although he did win ratification of the budget.

The big concern for Italy will be who replaces him. It is just the latest chapter in the eurozone debt crisis which we said could dominate the headlines for the remainder of 2011.

The indexes have stayed in a tight trading range today as a result which could last into the close unless there is a final hour rally by bulls which we think is likely.

The Dow is up 11 points to 12,079 while the S&P 500 is higher by 3 points to 1,264. The Nasdaq is showing a 10 point pop and is at 2,705 which is bullish.

We are close to adding a few more new trades but we want to close some current ones out, first. We are on the verge of taking profits on a couple more names so we don’t need to push the action. For those of you who have our trading course, we will be doing a video tonight on a few trades that could make our Watch List in the next day or two.

Remember, upgrade to a 1-year membership, save money (you save 25% over the monthly rate), and get our trading course, How to Trade Options on Momentum Stocks, at no charge, along with our ongoing videos. Shipping is also on the house.

Let’s get ready for a push higher, subscribers, check the Members Area for the updates.

Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Market Analysis, Market Commentary | Comments Off

Bulls Fade but Could Bounce Back

Monday, November 7th, 2011

1:05pm (EST)

We have our fingers in a lot of pies so our commentary will be short today as we have an open trade with headline news due out after the bell. Not only has today been busy, we expect a super busy week so stay on your toes.

The bulls have been a little lazy today after jumping out to an early lead. Perhaps they sent some of the herd out to test the waters but the bears appear ready to fight.

The Dow has trade above 12,000 but is down 78 points to 11,904 while the S&P is off by 9 points to 1,244. The Nasdaq is showing a decline of 30 points and is at 2,656.

The Financial sector is weighing on the market as Greece seems to be on the back burner while Italy has moved to the front on Europe’s hot stove. We used the weakness to sell our only open put option recommendation for a 33% gain but they continue to move higher as shares move lower.

We will be back in the morning with a full update but the action is inside. We are taking HALF profits on another trade that is up 80% so pay attention to our comments. Subscribers, check the Members Area for the updates.

Another One Bites the Dust

Monday, October 31st, 2011

1:30pm (EST)

Futures were weak Sunday night and got progressively worse as we headed into this morning’s opening bell so we were prepared for a lower open. There are a few headwinds in play for the bulls this morning, mainly, the MF Global (MF, $1.20) debacle which is the latest firm to go belly-up.

The brokerage firm filed for bankruptcy protection after getting a letter that it had been suspended from conducting new business with the New York Federal Reserve. MF Global had a “meeting of the minds” over the weekend to see if its top brass could save the company but they decided against selling the company or they were asking too much for a company that made a big bet on European sovereign debt.

MF listed debt at $40 billion versus assets of $41 billion in its Chapter 11 papers this morning.

As far as economic news, the Chicago PMI for October was a disappointment and has added a little pressure to the downside. The index came in at 58.4, down from 60.4 in September, and missed expectations for a print of 58.9. We said in our Weekly Wrap a number north of 60 might provide some juice for the bulls but the miss wasn’t all that bad.

Despite today’s pullback, the market is on pace to finish October with historic gains.

The Dow is down 168 points to 12,062 but has held the 12,000 level while the S&P is off 19 points to 1,266. The Nasdaq is lower by 32 points to 2,705.

Third-quarter earnings are still in the mix and tomorrow’s big names include: American Capital (ACAS, $7.97, down $0.06), Baker Hughes (BHI, $57.83, down $3.06), CF Industries (CF, $165.10, down $5.04), Dunkin Brands Group (DNKN, $28.92, up $1.03), Peets Coffee & Tea (PEET, $63.76, up $0.30) and Pfizer (PFE, $19.55, down $0.27).

We have a lot to cover in our Members Area, including an update for our latest recommendation so we have to cut it a little short today. Subscribers, check the Members Area for the updates.

Bears Cover Shorts, Market Surges 3%

Friday, October 28th, 2011

9:05am (EST)

Wall Street was giddy on Thursday after hearing Europe’s long-awaited plan to fix their debt crisis is finally gaining traction. We covered the details of the 3-step plan yesterday and economic news here at home was decent with 3Q GDP (Gross Domestic Product) coming in better-than-expected. Jobless claims were a smudge over 400,000 again but were mostly in-line with expectations. Throw in some short-covering and it was off to the races for the bulls.

The Dow advanced 340 points, or 2.9% to settle at 12,208. We mentioned a run to 12,200 was possible if the bulls broke 12K and we can’t call it much better than that. The index traded to a high of 12,284 before giving back a little of the fluff, but more importantly, the blue-chips closed above their 200-day Moving Average (MA) for the first time since the beginning of August. We started our homework a little early because the Dow hit our top-end target a day sooner than expected but the signs are pointing towards a test up to 12,500-12,600 if the bulls can keep the momentum going.

The S&P 500 soared 43 points, or 3.4%, to finish at 1,284. Coming into the week, we knew there was a good chance of 1,250 falling and we said a break above this level could lead to run up to 1,275-1,300. The index hit a high of 1,292 and also conquered its 200-day MA.

As for the Nasdaq, it zoomed 88 points, or 3.3%, to end at 2,738. Tech hit an intraday peak of 2,753 and we said to look for a pop to 2,700-2,750 this week.

We are going to be a little short with our commentary because we have a Special Notice inside our Members Area along with 2 more NEW TRADES!!! We closed out 3 winning trades this week and locked-in half profits on 2 others.

We normally don’t like buying options on Friday’s but one of our latest recommendations is a Drug company on the verge of doing BIG things if they gain approval of one of their drugs. The other trade we are recommending options on is a stock that could gain 50% by year-end if it makes it back to its 52-week high by Christmas.

Subscribers, pay close attention to the LIMIT PRICES we have set for each trade. If we can’t get in at the open, we will wait and see what happens. If we do get filled, we will send out a Trade Update shortly after the bell.

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REGINA L.
I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year
of membership rather than the one quarter. Thanks again, and LOVE YOU ALL.

STEVE T.
Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help.

SCOTT H.
Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide.

PETER G.
Rick & Team, GREAT Call on NKE for my two trading accounts:
1) Entry at .65, out at 1.45, 1.55 Profit = $415
2) Entry at .60, out at 1.75, 1.50 Profit = $485

LAWRENCE O.
Hey Rick! Here is an update on what your picks have done in my accounts.

1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming.

C.J.
Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your newsletter...it gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again!

SHAUN
Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace!

MICHAEL K.
I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good
profitable calls. Keep up the good work.

PARAG P.
Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!

JAY P.
Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN.

MIKE
Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You.

TRISH D.
Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks.

MIN L.
Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock!

JOE G.
Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you!

GREG F.
Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming.

NOEL
I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It's right at 100% return. I hope earnings season coming up is going to look like this trade.

TODD F.
Nice call on Nike. I think I'll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75's could be a steal today.

PAUL H.
What a sweet way to get introduced to Momentum. My first trade based on your picks and it a 2X. Thank you!

NOEL
“Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can't go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick's advice since March. It’s usually a fun ride, but I give him heck when it's wrong to. :) ”

CHRISTIAN
“Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.”

JOHN
“I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.”

CHARLES M.
“I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.”

BRYAN C.
“I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.”

JOHN H.
“I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.”

JEFFREY
“Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.”

ED
“I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.”

GREG
“Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.”

KEN
“Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.”

GARETT
“Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.”

TERENCE
“Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.”

Posts Tagged ‘bear market’

Late Day Rally Pushes October Resistance

Market Slightly Up as Bulls Take Breather

Bulls Fade but Could Bounce Back

Another One Bites the Dust

Bears Cover Shorts, Market Surges 3%