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Bears Crack Support, Bulls Hold into Close

Tuesday, December 3rd, 2013

9:00am (EST)

We mentioned in our midday update on Monday the bulls needed to watch for a bear attack into yesterday’s close and the assault came a little early instead of the final hour.  We covered the bear tracks that were left on Friday so we were prepared for some weakness to start the week but said the bulls needed to hold support.  They did for the most part but another blow by the bears could get the second layers of support in play. (continued…)

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Blue-Chips Lower on Another Mixed Monday/ Profit Alert!!!

Monday, December 2nd, 2013

11:50am (EST)

Shoppers were out on Black Friday as the National Retail Federation reported total spending for the holiday period (Thursday through Sunday) came in at $57.4 billion.  Despite the public debate against retailers opening on Thanksgiving Day, 45 million shoppers went out looking for gifts, a 27% increase from last year.  Black Friday was the biggest moneymaker over the 4-day weekend as 92 million people shopped.  The average spending price came in at $407 for the 4 days, down from $423 last year.

Most of Wall Street was away on Friday but we worked to get a head start on this week as we looked for clues to see if the current rally will last into and through December or if the is a short-term hiccup we need to worry about.  We mentioned in our Weekly Wrap and this morning in the Daily that we are still bullish but we did see a few warning signs on Friday that has us somewhat cautious.

We also see a lot of reasons why a continued rally could occur into 2014 and we will talk about that landscape over the next few weeks as we wind down another great year and look forward to the grind again next year.  Even better, the next 6 weeks will offer us plenty of opportunities to trade as volatility starts to heat up.

Today’s flat session could pick up in the afternoon and the bulls will need to guard against the late day bear attacks that occurred last week on light volume.  If there is selling pressure into the close and volume picks up, we could be getting another clue to lock-in profits.

As we head to press, the Dow is down 22 points to 16,063 while the S&P 500 is up a point to 1,806.  The Nasdaq is lower by a 6-pack to 4,054 and the Russell 2000 is declining 5 points to 1,137.  The S&P 500 Volatility Index ($VIX, 14.07, up 0.32) has traded to a high of 14.23.

We do have some nice pin action going with a few of our current trades and we are going to use today’s pops to lock-in some profits.  Subscribers, check the Members Area for the Profit Alert and stay locked-and-loaded into the close in case we take additional action.

MomentumOptionsTrading.com Profit Alert (RBS) for 8/14/2013

Wednesday, August 14th, 2013

11:25am (EST)

We mentioned last week we had a few trades that would come down to the wire as August options expire this Friday.  This trade was down 36% coming into the week but we believed in our chart work and said if shares could trip $10.50, we should be able to get out for a double-digit profit.  Bingo.

Shares are up 3% to $10.77 and our options are now UP 36% as they are up nearly 88% on today’s move in the stock.  While there could be further gains in our August calls, we are going to ring the register and take profits at current levels.  We still have a position in the November call options so we will still benefit if shares continue higher.

This is our 12th-straight winning trade since early July and we are in the process of building out our next batch of trades into September and October.  The next 3 weeks could be special if we are correct on predicting the market’s next trend.

Subscribers, check the Members Area for the update and we will be back shortly with the Midday report.

Bulls Facing Big Test

Wednesday, August 7th, 2013

1:00pm (EST)

The bears are working on a three-session win streak if current levels hold as they are trying to push the next wave of support.  The bulls are holding prior support levels before last week’s breakout to new highs and while we figured a back test would come, it is important the market hold prior support levels.

We are looking at a possible trade to take for tomorrow’s action but we wanted to get the midday report out and update our current trades while we continue to do some research.  We have hit it big today as one of our option trades returned 175% so we have to keep things short as we have a lot going on with our current trades.

The Dow is down double-nickels (55 points) to 15,463 while the S&P 500 is lower by 7 points to 1,690.  The Nasdaq is off 17 points to 3,648 while the Russell 2000 is declining 5 points to 1,047 with the low checking in at 1,042.

We could have a New Trade Alert later this afternoon and into the close so stay locked-and-loaded in case we take action.  Subscribers, check the Members Area for the updates.

Bears Crack First Wave of Support

Tuesday, August 6th, 2013

12:45pm (EST)

Picking a market top is never easy but we have been bulls-eye accurate all year long in predicting where the market is headed and what the trend is.  We haven’t had much downside market action except for the one in June to a test to the 100-day MA’s (moving averages) and there have been a few trading ranges along the way.  While today’s action doesn’t make a trend, we have given you specific clues to watch for a pullback, or the possibility of another trading range before the next leg up.

The bears are pushing back a little in today’s session as they have cracked near-term support that served as prior resistance.  The Dow has hit a triple-digit loss and hasn’t experienced a 100-point correction in over a month.  The S&P 500 Volatility Index ($VIX, 12.61, up 0.77) is spiking but the bears will need to clear and hold 13.50 before the second wave of support comes back into play.

We have been busy this morning ringing the register on our own triple-digit winners as we cashed in on MGM Resorts International’s (MGM, $17.07, up $0.52) big move today.  We often remind new subscribers if a stock moves 5%, up or down, there is a good chance at making a 100% return on the options.  Shares of MGM are up 3% but were up 8% on the move to $17.67 on the open and where we locked-in profits.  The near-term call options we recommended in late July gave our readers profits of 135% and 102% in just 1 week.  Powerful stuff and why we love trading options.

Today’s action is bearish but we have seen late-day comebacks by the bulls in recent weeks.  The dip buying was alive and well on Friday but it wasn’t there yesterday as volume has dried up.  Monday was the lightest trading day of the year and today isn’t much better.

While we do believe there is a chance for higher highs, we are ready to play a downside move if needed and we do have a couple of put option trades in place to profit from a possible pullback.  The good news is we are showing tremendous gains for the year and our portfolio is light and up over 100% YTD.  This will allow us the flexibility to open and close new trades based on the trend.

There will be some Zombie speak later this afternoon as one of the bearish Fed Heads will be speaking out on stimulus and possible taper talk.  With the other zombies away for their month long August vacations, and economic news light this week, there could be some volatility as the Fed zombies try to claim their 15 minutes of fame and influence the market.

Our plan is to be patient and wait for the market to come to us. (continued…)

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    The portfolios can be found in the Members Area as well as past portfolios from 2008-2011. Overall, we are 621-273 on nearly 900 real-time recommendations that equals a success rate of 70%. This means, on average, 7-out-of-10 of our option trade recommendations make you money and we hope to have an even better success rate for 2013.

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Trader Comments:
    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. REGINA L.

    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. STEVE T.

    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. SCOTT H.

    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 PETER G.

    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. LAWRENCE O.

    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! C.J.

    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! SHAUN

    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. MICHAEL K.

    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!
    PARAG P.

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

    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. MIKE

    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. TRISH D.

    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! MIN L.

    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! JOE G.

    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. GREG F.

    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. NOEL

    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. TODD F.

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

    “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. :) ” NOEL

    “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.” CHRISTIAN

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

    “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.” CHARLES M.

    “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.” BRYAN C.

    “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.” JOHN H.

    “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.” JEFFREY

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

    “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.” GREG

    “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.” KEN

    “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.” GARETT

    “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.” TERENCE

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    3/18/11
    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    2/3/12
    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

    Hi Rick,

    Wow!! my account it up 70% since i joined last month and market is going the opposite direction. Really appreciate your service. I just wanted to drop a note to say THANK YOU. Hope to be with you guys for a very long time. Mel

    Rick,

    Great call on Fosl I bought the may 120 puts for 3.70 yesterday morning just sold for $32.00 today
    Keep up the great work
    Thank you, Henri

    Rick –

    I bought 10 Deckers Outdoor (DECK) May 55 puts at $0.50 on 4/26/12 and sold them on 4/27/12 for $1.65. I made $1150 in one day. Thanks. I knew something good would happen sooner or later.
    HOW THE HECK did you know Green Mountain Coffee (GMCR) was going to go down 20 points???!!!! I bought 10 of the May 35 puts at $0.49 and then 5 more at .30. I sold them at 5.80. Thank you again.
    You have made a believer out of me. Alan

    Rick –
    I have only been a member for about 6 weeks but I have done well on most of the trades. My first two were QQQ and SPY a month ago and since then I've gotten into the groove and been doing well.
    I try to execute the trades that you recommend as soon as you send them out, sometimes I can't and I miss the Entry price. However, sometimes when I miss the Entry, the price goes down and I get a better price.
    That's exactly what happened with GMCR.
    You recommended it at around $.81 I think, but by the time I got to it, the price was $.27. I bought 100 Puts on Wednesday May 2, 2012 and sold half of them 24 hours later at $5.95 for a nice 2,203% gain. As per your recommendation, as GMCR went above $30 I sold the remaining 50 Puts at $5.50 for a slightly less 2,037% gain.
    On average that one trade netted me a 2,120% gain, entirely based on YOUR recommendation (and a little bit of luck). To put this in real terms, I risked $2,700 on Wednesday and pocketed $54,550 just 24 hours later.
    So uhh, let's do that again real soon!!
    Feel free to use my name. The tax guys have me on speed-dial already anyway. Dennis

    Rick:
    That was awesome on your GMCR pick, I know how risky it can been holding into earnings but you pulled it off. 
    I just started my autotrading with you today and am in on your QQQ play. I look forward this service. 
    I have a busy career and I have tried to follow and trade throughout the day and found it too hard. I hope you continue to have a great year, I plan to go along for the ride. I am starting slow but will pile more in once I have secured some profits. 
    Keep up the good work your trading has been spot on. I am sure you paid your dues to get this point in your career. Anthony

    Rick:

    Great call on GMCR!  I have been trading for about 15 years actively.  This may be the best trade I ever made.  Got in on Monday, April 30 and the stock was up from when you recommended it.  It went up further after I got in.  Here are the facts:
    Monday, April 30th: Bought 15 June 37's at $1.25= $1900 approx
    Thursday, May 3rd: Sold 15 June 37's at $9.30=$13,950
    Gain for the week: $12,050.
    I understand you will not get them all right.  It’s important to ride those winners and as you could tell from my selling price, I sold when the stock went to $28.10, so left a little on the table.  Who can complain.
    Keep the suggestions coming, looking for another jump on your FSLR, one that I have been riding very hard.
    Best regards, Bob
      

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