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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.)
Bears Grab Early Lead
Monday, March 5th, 2012
1:25pm (EST)
The market has gotten off to a slow start as futures were weak throughout the night. We spent a lot of time looking at the charts over the weekend and the 5-week trading range we have been in has been frustrating to a degree. While we continue to take profits when we can, it’s been harder to establish a clear trend as the indexes continue to churn sideways. We mentioned this morning and in last night’s Weekly Wrap that the Russell 2000 (800.10, down 2.32 points) was breaking down like a rented mule and needed to hold 800 but there are some other sectors showing weakness which has lead to today’s decline.
Economic news has come in better-than-expected but China lowered its GDP (Gross Domestic Product) figures which offset the good news here at home. The February ISM non-manufacturing index came in at 57.3, versus expectations for a print of 56, while Factory Orders showed a decrease of 1.0% in January, versus expectations for a 1.5% decline.
Meanwhile, China lowered its GDP target to 7.5% from 8% which has been a goal for them since 2005. This was one of the key reasons the overseas markets were weak when they opened. China said that it needs to shift to a more sustainable and efficient economic model which could cut its reliance on exports and capital spending in favor of increased consumption. The news wasn’t all that bad as many analysts expected them to lower their GDP to 7% or less.
The two big events this week is the expected announcement of Apple’s (AAPL, $535.76, down $9.42) iPad 3 and Friday’s unemployment numbers. The headlines that come from the news will surely sway the markets and it may or may not be enough to break us out of this trading range but we are betting it will.
Given the lack of positive catalysts today, the bulls have struggled to gain momentum as the bears have held any advance in check. The Dow is down 46 points to 12,931 while the S&P is lower by 8 points to 1,361. The Nasdaq is off 28 points to 2,948.
Some good news for our portfolio – Our magicJack VocalTec (CALL, $23.26, up $1.28) call options continue to shine. The trade is now up 179% and we are looking for shares to make a move north of $25 this week. If not, our hard Stop will protect profits. Subscribers, check the Members Area for the updates and we will see the rest of yawl in the morning.
Tags: AAPL, Apple put options, CALL, call options, iPad3, magicJack
Posted in Apple, Economic News, Market Analysis, Market Commentary | Comments Off