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Posts Tagged ‘Citigroup’

Fed Watch Today

Wednesday, September 23rd, 2009

9:20am (EST)

Futures are slightly higher this morning as Wall Street awaits the Federal Reserve’s decision on interest rates.  Dow futures are up 11 to 9,782.  S&P 500 futures are higher by 2 to 1,069 while the Nasdaq 100 futures are up 7 to 1,740.

The U.S. central bank is expected to keep interest rates at a record low of near zero, but the Street will be looking for an indication of when the Fed may raise rates in the future.  Look for fireworks at 2:15pm.

There are a few movers and shakers before the bell…AutoZone (AZO, $152.92) is down $4.50 in pre-market trading after it missed Wall Street’s estimates.  For the quarter, the company said it earned $236 million, or $4.33 per share, down from $244 million, or $3.88 per share, a year ago.  Analysts were expecting a profit of $4.45 per share for the latest quarter.

Dendreon (DNDN, $28.87) is back near $30 and Citigroup (C, $4.65) is also up before the bell.  I’ll be back at 1pm with the mid-day update.  Subscribers, check the Members Area for the trade updates.

Rick@MomentumOptionsTrading.com

Futures Pointing Towards Higher Open

Tuesday, September 22nd, 2009

8:45am (EST)

Futures are steam-rolling higher this morning, pointing towards a nice open as the market tries to rebound from yesterday’s losses.  It looks like the bulls are ready to run once we open but will it be enough to get the Dow to 10,000?

Ahead of the bell, Dow futures are up 47, to 9,765.  S&P 500 futures are higher by 6, to 1,066, while the Nasdaq 100 futures have climbed 11, to 1,739.

The first hurdle to clear this morning will be the housing price numbers which are due out at 10am.  The Federal Reserve also kicks off its two-day interest rate meeting today, and although they don’t comment on the first day, interest rates are expected to remain unchanged when they announce Wednesday. Also, the U.S. Treasury is selling $45 billion in two-year notes so we will have to see what impact this could have on the market.

It looks like the cruise industry is enjoying better times…Carnival (CCL, $32.00) is trading higher by $1.65, to $33.65, after reporting better-than-expected earnings this morning.  Ditto for ConAgra Foods (CAG, $22.33) as it reported 1Q results that topped Wall Street’s expectations.

As far as stocks we are watching, Citigroup (C, $4.43) is up 14 cents, Research In Motion (RIMM, $84.16) is trading near $85, and Dendreon (DNDN, $29.46) is up 44 cents to $29.90.  Subscribers, check the Members Area for the trade updates… 

Rick@MomentumOptionsTrading.com

Retail Sales Lift Futures, Best Buy Misses

Tuesday, September 15th, 2009

9:00am (EST)
 
Futures were slightly higher before the Retail and PPI numbers came out at 8:30am.  Before the reports the Dow futures had been up 4 while the S&P 500 futures were higher by 1 but jumped after the reports were released.  August Retail Sales were up 2.7% compared to expectations for an increase of 1.9%.  August PPI was 1.7% compared to a forecast of 0.8%.  
 
Best Buy (BBY, $40.10, down $0.31) is trading lower after missing its quarterly number.  The company reported earnings of $0.37 a share which was $0.05 lower than what Wall Street was predicting.  However, the company did beat its revenue number which came in at $11 billion versus expectations of $10.79 billion.
 
From the Are You Serious department…Yesterday I mentioned Zoom Technologies (ZOOM, $13.20, up $0.51) at lunchtime when the stock was at $7.44, up 84% for the day.  The stock closed at $12.69 and is up another 4% in pre-market trading.
 
Other stocks we are watching this morning:  Freeport McMoRan (FCX, $71.01, up $0.39) is up while Dendreon (DNDN, $26.55, down $0.55) has actually slipped.  Dendreon had been positive for much of the early trading after tacking on another 50 cents in last night’s after-hours.  We still haven’t “officially” opened but subscribers should check the Members Area for the latest updates on both of these trades.
 
Looks like we are headed higher at the open. As a reminder, I have been fielding a lot of emails asking where the market is headed.  Well, to be honest, no one really knows but here were my thoughts on August 23rd, which, after three weeks has been spot on: 
 
“The market has had an incredible run and the key levels we are watching are as follows.
For the Dow (currently 9,505), watch for 9,625 which was the November high.  A run above this level clears the way for…dare I say it….Dow 10,000.  There is support at 9,000 but a break below 8,900 would send up a warning signal.
 
As for the Nasdaq (2020), it looks like 2,100 is smooth sailing as long as the bulls continue to run this week.  Above that, we get choppy but we could get a run to 2,275.  Support is at 1,930 and further down at 1,800 or so.  A break below that could lead to 1,600.
 
The S&P 500 (1,026) could easily make a stab at 1,100 now that it has surged past 1,000 but 979 will be key support near-term.  There is really nothing stopping the index from hitting 1,150-1,175 which is where headwinds will pick up.” (END)
 
The Dow is at 9,626, the Nasdaq at 2,091 while the S&P starts the day at 1,049.  That was the road map we drew up in August.  Let’s see if it holds up…
 
Subscribers, don’t forget to check the Membes Area.
 

A Blast From The Past

Thursday, September 10th, 2009

8:25am (EST)

Somebody forgot to tell the bulls that September is historically a bad month for the market.  There wasn’t much action heading into Friday’s unemployment report but now that it is out of the way, the bulls seemed determined to take us higher.

The Financials put in a good day after a few upgrades in the sector.  Citigroup (C, $4.66, down $0.02) upgraded shares of MasterCard (MA, $210.31, up $2.86) while JPMorgan (JPM, $42.86, up $0.32) super-sized Morgan Stanley (MS 28.55, +0.75).

This is normally the time of year that companies pre-announce earnings but I don’t think we have to worry about the Financials saying anything negative…I wouldn’t think.  Quietly, they have reported back-to-back solid quarters and if 3Q earnings come out better-than-expected, watch out.

One stock that I wanted to mention this morning real quick is JDS Uniphase (JDSU, $7.37, up $0.14).  A subscriber pointed out that he now had a profitable position but I dropped the trade because I thought it would expire worthless (just like he thought).  I profiled the September 7 calls (UQDIJ, $0.45, up $0.10) on June 9th and we left them for dead two weeks later.  There was no stop on the trade and  I had this to say:

From June 22nd (quotes are from that day):

JDS Uniphase (JDSU, $5.48, down $0.39) is a “lottery” play and we entered the September 7 calls (UQDIJ, $0.10, down $0.10) at 35-40 cents. One contract would have cost you $40 or 5 contracts would have cost $200.  When I say a trade is a “lottery” trade that means there is no stop for these positions because they are just that..lottery picks.  As you can see, we will have to wait this one out.” (END)

The reason I am pointing this out is because we currently have a few “lottery trades” in the portfolio.  These types of trades are OKAY to try but only if you do limited positions AND you are doing well on your larger trades.  Lottery trades are options that trade for under 50 cents.  We normally do 10 and 20 lot trades on options that cost $1.50-$2.50. These trades are more detailed and aren’t on lower priced stocks.

Back in the day, they didn’t even list options for stocks that trade for under $5.

The key to taking on these risky trades is to only buy the same amount of contracts that you do with the other trades.  If you buy 10 contracts of a $2.00 option and it goes to $4.00 you have made $2,000.  If you then take those profits and roll the dice on a “speculative” trade that you think could do well and you buy 10 contracts for 30 cents, you are risking $300.  You still have a profit of over $1,700 which would allow you to play in this area.

That is all I have for today.  There was no afternoon post yesterday because of Jury Duty.  And I have it again today so no afternoon post.  Sorry folks, this is about the only thing that makes me miss an update.

Subscribers:  Please don’t forget to check the MEMBERS AREA for all NEW trades.  The trade updates are posted by 9:00am (EST) EVERY morning and I don’t profile mid-day trades.  So, if you are a subscriber, check the Members Area daily to see what we have going on.  I have profiled two for Thursday morning.

Rick@MomentumOptionsTrading.com

Weekly Wrap for 9/7/09

Monday, September 7th, 2009

11:00pm (EST)

1. Commentary
2.
Imax Could Be A Wildcard
3. Earnings

4. Current Trades
5. Closing Thoughts

**************************************************

1. Commentary

The market was on pins and needles all week as all eyes were on “the number” before the bell on Friday.  It was a choppy week that started off with a thud as the Financial stocks took a beating after rumors of a big bank failure was making the rounds. 

Wells Fargo (WFC, $26.91) squelched murmurs of a dilutive secondary offering which has been going around for weeks as the company said it intendeds to repay the TARP funds it borrowed without raising equity. 

Of course, a weaker-than-expected unemployment rate of 9.7% made the print on Friday as Wall Street had expected 9.5%.  Despite the not so shocking news, the market trended higher on Friday but finished lower for the week.

Overall, the Dow lost 103 points to finish the week at 9,441.  The Nasdaq fell 10 and stands at 2,018 while the S&P 500 gave back 12 points and closed at 1,016.

I’ve got a lot I want to talk about so let’s move on after enjoying this Holiday weekend…

**************************************************

2. Imax Could Be A Wildcard  

Folks, I am really starting to like Imax (IMAX, $9.30, up $0.12).  This piece is from the December 8th, 2008 Blog:

“I’m not all that excited about the “movie” stocks but there may be an opportunity to make some trades within the sector as we head into a festive time of the year. Thanksgiving through Christmas is movie heaven and there’s a chance some of these beaten down stocks could recover.

The one player I do like in the sector is Imax (IMAX, $2.73, down $0.08) and I have mentioned this stock before at higher levels. I do not trust the stock enough to buy any longer-term options (yet) but Imax could be a force in the movie industry down the road.

Although we were successful in riding Imax to its 52-week high, the stock has dropped nearly 70% from a peak of $8.28. The stock is cheap enough to the point where instead of making an option trade it might be better off to buy the stock. It eliminates the risk of an option expiring worthless and if Imax can get to $10, you would easily triple your money.

Imax has its fingers in a lot of pies and is developing some solid business partners and relationships with some top-tier names. The company recently inked a deal with Walt Disney (DIS, $21.94, up $0.48) and is strategically building the “Imax Experience” into a tidal wave. ” (END)

If you had just bought the stock back then you would be up nearly 250% today.  So what is next for Imax?

To read the rest of this story, please go to our Members Area.  Subscribers click on Tuesday’s link 9/8/09.

**************************************************   

3. Earnings

Monday:  Market Closed    

Note:  Check the Members Area for a possible trade on a couple of these names.

Tuesday:   Casey’s General Stores (CASY, $28.32, up %0.06), Nobel Learning Communities (NLCI, $10.32, down $0.06), Pep Boys (PBY, $9.30, up $0.60), Smithfield Foods (SFD, $13.04, up $0.31).

Wednesday: Globecomm Systems (GCOM, $7.60, up $0.43), Hi-Tech Pharmacal (HITK, $15.79, up $1.00), Investors Real Estate (IRET, $9.19, up $0.12), Men’s Wearhouse (MW, $25.91, up $0.66), Shuffle Master (SHFL, $7.50, up $0.25), Smith & Wesson Holding (SWHC, $5.28, up $0.09) and United Natural Foods (UNFI, $27.86, up $0.43).

Thursday: AEP Industries (AEPI, $38.18, up $0.40), Lululemon Athletica (LULU, $19.97, up $0.18) and Navistar International (NAV, $46.35, up $1.50).

Friday:  Aceto (ACET, $6.50, down $0.06), Brady Corporation (BRC, $30.35, up $0.56) and Campbell Soup (CPB, $31.19, up $0.31).

**************************************************

4. Current Trades    

For our current trades please check the Members Area.

**************************************************

5.  Closing Thoughts

Depending on this week, it looks as though the bulls are at least going to hold Dow 9,000 as we head into 3Q earnings season.  We saw a lot of companies beat in the second quarter but that was by cutting costs.  We will need to see revenue growth at some point.

We were shaky on Tuesday with the Financials taking a hit and the China market tanking but the sell-off didn’t have any follow through.  By Thursday, the bulls were back in buying the dip and started nibbling again on Friday.

As I go to press, Dow futures are up 45 while the Nasdaq and S&P 500 futures are up 6.  That means that sentiment is leaning towards a positive open on Tuesday.

Rick Rouse

Rick@MomentumOptionsTrading.com

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2012 Closed Trades:
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Trader Comments:

    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.”

    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.

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