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Friday, August 31st, 2012
9:00am (EST)
The market closed right at support like we figured heading into today’s big event. We are pretty sure Ben Bernanke checked yesterday’s closes on the indexes so he is well aware what his carefully chosen words could mean for the market.
The Dow dropped 107 points, or 0.8%, to end at right at 13,000. The blue-chips traded in the red all session long and dipped to a low of 12,978. Today’s action could produce a 200-point swing on the Dow which would be the next wave of support for the bears (12,800) or a rebound back to resistance for the bulls (13,200).
The S&P 500 fell 11 points, or 0.8%, to settle at 1,399.48. The index traded to a low of 1,397 and could face a quick test to 1,375 on continued weakness after failing to hold the 1,400 level. The bulls could easily reclaim 1,410 or even 1,425 on bullish Bernanke comments.
The Nasdaq declined 32 points, or 1%, to finish at 3,048. Tech was unable to hold the 3,050 level and could test 3,025-3,000 on a continued pullback. A run back to 3,100 could be in the mix if the bulls get some good news.
The Russell 2000 closed at 808, down 9 points, or 1.1%, while the S&P Volatility Index ($VIX, 17.73, up 0.67) finished above 17.50.
Futures are showing a bullish open and look like this: Dow (+113); S&P 500 (+12); Nasdaq 100 (+27). Bernanke is no E.F. Hutton but everyone will be listening starting at 10am.
We have added several new possible trade candidates to our Watch List which could be opened once we get a good feel on what might happen. Subscribers, check the Members Area for the details and be on the lookout for New Trades or possible Trade Alerts if we need to take any action before our midday updateWe have added several new possible trade candidates to our Watch List which could be opened once we get a good feel on what might happen. Subscribers, check the Members Area for the details and be on the lookout for New Trades or possible Trade Alerts if we need to take any action before our midday update.
Tags: Bernanke Jackson Hole speech, best options newsletter, call options trading, VIX index
Posted in Market Analysis, Market Commentary, Sectors, VIX, Watch Lists | Comments Off
Tuesday, August 28th, 2012
12:30pm (EST)
It’s rare we hear politicians say they have a “heavy workload” but that is the excuse European Central Bank (ECB) President Mario Draghi gave the Federal Reserve for why he won’t be attending the social outing in Jackson Hole this Friday. The talking heads are working themselves up as they ponder why he is now not attending and the simple answer is he has too much on his plate.
Draghi was scheduled to participate in a panel discussion on Saturday but next week’s ECB Governing Council’s meeting is keeping him at his desk. Wall Street was hoping he would provide some clues to the bond-buying proposal he outlined earlier this month but they will likely have to wait until September 6. Imagine that.
It was a classic move by Draghi who has kept the market on pins-and-needles and would prefer to see what Ben Bernanke has to say first. That’s the bottom line.
As far as economic news, the Richmond Fed Manufacturing Index “improved” to -9 in August following a reading of -17 in July. The suit-and-ties were looking for a print of -10. Elsewhere, the Case Shiller 20-City Home Price Index rose 2.3% in June to 142.2 which was ahead of estimates while Consumer Confidence missed expectations after coming in at 60.6.
Earnings for tomorrow include: Fresh Market (TFM, $61.22, down $0.01), Joy Global (JOY, $54.21, down $0.16), Pandora Media (P, $10.29, up $0.24) and TiVo (TIVO, $9.48, up $0.15). We have played options on all of these stocks, expect Fresh Market, in the past and there may be an earnings trade out of the group but we have decided to sit on the sidelines.
We closed another one of our current trades earlier this morning and we have some updates to go over for our other open positions so we have to roll. As we head to press, the Dow is up 7 points to 13,132 while the S&P 500 is higher by 2 points to 1,412. The Nasdaq is advancing 10 points to 3,082.
Subscribers, check the Members Area for the updates and we will be back in the morning with the latest and greatest news.
Tags: best options newsletter, JOY stock quote, option trading, TFM, TIVO quote
Posted in Economic News, Hot Stocks, Market Commentary | Comments Off
Wednesday, June 13th, 2012
9:00am (EST)
The wild price swings we have seen in the market between the bulls and bears has been kicked-up a notch in June like we have expected. Tuesday’s action was much like the start of the week but the bulls were able to hold their gains and extended them into to the close. We also said on Monday that traders would have to keep their emotions in check as the major indexes continue to trade between their 50-day and 200-day MA’s (moving averages).
These types of trading ranges can be frustrating but the big, intraday, moves are telling us a possible breakout or MAJOR breakdown is coming soon. The charts we show you this morning still favor the bears but the bulls haven’t thrown in the towel. (read more…)
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a unprecedented start for 2012. 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 and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Together, we are 98-20 and we doubt you will find a hotter newsletter.
Tags: best options newsletter, stock options trading advisors
Posted in Market Commentary | Comments Off
Friday, May 4th, 2012
1:30pm (EST)
We stayed up late again last night to watch the overseas markets open this morning but futures were flat as a pancake which offered us few clues on how Wall Street would open this morning.
Of course, we have been telling our subscribers today’s Nonfarm Payrolls would be crummy and we actually predicted a print of 115,000 sitting around the office yesterday. Coming into the week, we were thinking anything under 125,000 would put a halt to the current rally that had pushed the major indexes right to resistance and we also talked about how the market has been in a 5-week trading range.
The Labor Department reported that 115,000 jobs were added in April which was the smallest gain in six months. If the bulls had gotten a number above 175,000 perhaps we would be seeing new market highs for the year. However, we knew there was a good chance the major indexes would fall back into the lower end of the trading range and we are hoping for much worse.
The talking heads will try to spin the Unemployment Rate which fell to 8.1% but the real number for unemployment in America is probably 15% or more. Either way, the news was bad and Wall Street seems shocked.
Not us. We have been warning our subscribers of a market pullback and possible correction as we have been loading up on put options since the beginning of April.
It’s been a sweet week despite the tight trading range we have been in for over a month as we have been able to close 3 more winning trades. Our current closed trade win streak is now at 16-straight which brings our 2012 Track Record to 76-18 year-to-date.
This is an incredible 80% win rate trading options and most “professional” traders would sell their soul to get 55% right trading stocks. Options are much harder to trade because they are time sensitive and by Wall Street standards and for options trading, a 55% win rate would actually be a great compliment. We try to do better than that as you can see.
The Dow is down 160 points to 13,046 while the S&P 500 is off 121 points to 1,370. The Nasdaq is lower by 59 points and is at 2,965.
There are two key elections are over the weekend concerning France and Greece. There are new radical parties that could win seats and this could lead to more uncertainty.
We hope so because our current put option trades are exploding today. We have to cut it short because we have listed Hard Stops on a few trades to protect profits.
We also have a NEW TRADE we are getting into as soon as we send this out.
If you are not a subscriber, email us and we will send you a copy. If you are a current subscriber, please check the Members Area for the fresh updates.
We will be back Sunday night with the Weekly Wrap and if you still don’t believe us that this is still one of the BEST times to be trading options, then please take a look at our 2012 Track record. Your jaw is going to drop after you see the profits we have been racking up.
Tags: best options newsletter, put option trading
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off
Monday, April 2nd, 2012
9:00am (EST)
“Although this week is historically bearish, we could see some “window-dressing” by the fund managers which means they will be buying stocks early in the week. We still feel the market is close to peaking but we wouldn’t be surprised to see one last run at our near-term targets (Dow 13,500; S&P 1,425-1,450; Nasdaq 3,250; Russell 850) if there is a rush to buy this week.
We could also see a trading range this week before we get the surge in April which is typically one of the best months of the year for the market. Over the past decade, the indexes have gained 2%, on average, in April and if support holds this week, there is a good chance history repeats itself. However, we aren’t too bullish on 1Q earnings which will start to come in during the second week of April” (3/25/2012 Weekly Wrap/ Monday Morning Outlook)
The bulls held support and continued with their winning ways last week following the “Bernanke Bounce” on Monday. The major indexes rallied 1.5%, on average, after hearing the Fed Chairman say supportive monetary policies would remain in place and that another round of quantitative easing could be a possible. Ben Bernanke said the U.S. economy would need to grow more rapidly to produce enough jobs to further bring down the unemployment rate (which comes out this Friday). This spurred a huge relief rally following the prior week’s slight pullback as the market reached fresh 52-week highs.
The bulls came close to our aforementioned near-term targets as the momentum continued into Tuesday’s open. However, the momentum faded late in the day as a late session sell program hit Wall Street. The Dow was able to finish in positive territory but the S&P 500 and Nasdaq couldn’t escape the bears attack as both indexes ended the day with slight losses.
Wednesday’s futures were showing a continued pullback as the bears looked poised to crack another layer of support following weaker-than-expected economic news from overseas. They did at the open as the market fell over 1% when trading got underway. The Dow fell to a low of 13,069 while the S&P dipped under the 1,400 level before both indexes bounced back by the closing bell.
Thursday’s action was more of the same in the morning as lighter-than-expected economic news muddied the waters. Initial Claims fell 5,000 to 359,000 versus expectations for a drop to 350,000 but the previous week’s numbers were “revised” which accounted for the slight miss. Meanwhile, fourth-quarter Gross Domestic Product (GDP) increased 3.0%, which matched forecasts while Personal Consumption increased 2.1%, also in-line. Wall Street must have realized this after their lunch break as the indexes rebounded sharply in the second half of trading and into the close. The Dow was able to squeak out a small gain while the Nasdaq and S&P suffered only minor losses. This led us to believe that Friday was going to be a good day as the market was on the verge of booking one of the best quarters we have seen in quite some time…
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are off to a great start for 2012. 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 whiand double-digit returns for our Weekly Wrap. We are 59-13 over the first 3 months of 2012. Our list of winners include +475% on American Express, +292% on Capital One, +131% and +114% on 2 MGM trades, 200% on SGMS, 107% on AFL, 100% on STX, 82% on TSM and 125% on MSFT just to name a few. In other words, our closed option trades have turned a $10,000 trading account into $46,765 for a 367% return using our recommendations. We also don’t count closing “HALF” trades twice like some options newsletters do or tell you to buy another “HALF” position on a losing trade then only count it once. Our Track Record is real and so is our reputation. We also offer auto-trading which verify our results.
Tags: best options newsletter, best options newsletter 2012, options track record, stock options track record, stock options trading advisors
Posted in Market Analysis, Market Commentary, Option Trades | Comments Off
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Market at Support, Bernanke on Deck
Friday, August 31st, 2012
9:00am (EST)
The market closed right at support like we figured heading into today’s big event. We are pretty sure Ben Bernanke checked yesterday’s closes on the indexes so he is well aware what his carefully chosen words could mean for the market.
The Dow dropped 107 points, or 0.8%, to end at right at 13,000. The blue-chips traded in the red all session long and dipped to a low of 12,978. Today’s action could produce a 200-point swing on the Dow which would be the next wave of support for the bears (12,800) or a rebound back to resistance for the bulls (13,200).
The S&P 500 fell 11 points, or 0.8%, to settle at 1,399.48. The index traded to a low of 1,397 and could face a quick test to 1,375 on continued weakness after failing to hold the 1,400 level. The bulls could easily reclaim 1,410 or even 1,425 on bullish Bernanke comments.
The Nasdaq declined 32 points, or 1%, to finish at 3,048. Tech was unable to hold the 3,050 level and could test 3,025-3,000 on a continued pullback. A run back to 3,100 could be in the mix if the bulls get some good news.
The Russell 2000 closed at 808, down 9 points, or 1.1%, while the S&P Volatility Index ($VIX, 17.73, up 0.67) finished above 17.50.
Futures are showing a bullish open and look like this: Dow (+113); S&P 500 (+12); Nasdaq 100 (+27). Bernanke is no E.F. Hutton but everyone will be listening starting at 10am.
We have added several new possible trade candidates to our Watch List which could be opened once we get a good feel on what might happen. Subscribers, check the Members Area for the details and be on the lookout for New Trades or possible Trade Alerts if we need to take any action before our midday updateWe have added several new possible trade candidates to our Watch List which could be opened once we get a good feel on what might happen. Subscribers, check the Members Area for the details and be on the lookout for New Trades or possible Trade Alerts if we need to take any action before our midday update.
Tags: Bernanke Jackson Hole speech, best options newsletter, call options trading, VIX index
Posted in Market Analysis, Market Commentary, Sectors, VIX, Watch Lists | Comments Off