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1:10pm (EST)
The market has traded in a tight range following yesterday’s breakout but the action is on the upside as the major indexes are showing slight gains. Economic news has been mixed but hasn’t been much of a factor and the “high profile” earnings reports are already out of the way for the week. Strength has been in the Financials which has kept the bears at bay.
As far as the boring stuff, the Commerce Department said gross domestic product rose to 2.6%, which was a small increase from its earlier estimate of 2.5%, but below Wall Street’s expected rise to 2.8%. Elsewhere, the National Association of Realtors said that the sales of existing homes rose 5.6% in November to 4.6 million which was also slightly below estimates.
Currently, the Dow is up 12 points to 11,545 while the S&P 500 is up 3 points to 1,258. The Nasdaq is showing a 4 point pop and is at 2,671.
One stock that has been on fire this week is Patriot Coal (PCX, $18.58, down $0.13) which jumped another 7% yesterday following Monday’s 7% pop on an upgrade. Although shares are slightly lower today, they did make a run past $19 in early morning trading.
If you recall, this was our featured covered call trade for the Weekly Wrap before it went to a subscription based service and we recommended buying the stock while at the same time, selling a call option for every 100 shares you purchased.
We also profiled another covered call trade for our daily service which is showing a profit as well and will be included in the Weekly. Folks, covered calls are an easy way to learn options and participate in a stock that has the potential to go up.
We only look for premium trades that are going to make you money and although these types of trades are “boring”, they are also safe AND they let you enjoy any dividend payouts – providing shares aren’t “called” away from you by the expiration date on the options you sold.
Remember, we are currently running an incredible deal right now which includes our option trading manual, “How to Trade Options on Momentum Stocks” and “Momentum Stocks Watch List”, for FREE when you purchase a 1-year subscription to either our daily or weekly newsletters.
We honestly feel this is one of the very best and easiest options trading manuals that you will find on the internet and includes ongoing videos.
We are offering this deal because we want you as long-term subscribers and we want to teach you how to find incredible trades by using solid fundamental and technical analysis. We have been on a roll since October as we have nearly a 90% win rate on our trades since then. Folks, it has been a choppy year but we told you when the market broke out of its range and a trend developed then it would be easier to trade the market and options.
After 6 months of a trading range from hell we tried to stay even with the market and our portfolio is showing a gain for the year as we have hit on nearly 65% on our trades overall. We have profiled 5 triple-digit winning trades since the breakout but we see even better opportunities in 2011.
We aren’t sure if the trend will continue to be as strong as it is now to start 2011 but we are expecting a bullish run through April. Of course, there will be volatility along the way but a lot of investors are buying the market and money flow is strong.
We are offering these special deals because we don’t want you to stay with us just for a month. We want you with us for the entire year so you can learn how the market works and we want you to realize that trading is for the long haul. We have down months just like everyone else but we always look at the big picture which is how you did for the year.
Most newsletters or option services will not show you there track record or don’t even have one. There is a reason for that. We don’t roll that way. Our track records are updated and posted on our website Weekly and our OPEN positions are covered TWICE a day.
In fact, many option services are shutting down shop until the New Year and are only providing an update if something happens to your position. Some option newsletters only provide an update every few days or once a week. This is crazy.
The market changes daily, weekly, and monthly which is why we update our positions twice a day and we will keep working to find new trades this week and next.
We seriously believe if you purchase our option trading manual, read our updates, and follow our videos, you will become a successful option trader. Remember, this deal is only good through the end of 2010 and is the perfect gift to yourself to learn how to trade options. If you have questions, email us.
We will be back in the morning with a fresh outlook but current subscribers can check the Members Area for the latest trade updates.
Dow Slips but Bulls Keep Momentum
Thursday, January 12th, 2012
9:00am (EST)
We were a little surprised to see Tech show strength yesterday given the Microsoft (MSFT, $27.72, down $0.12) news that PC sales had dipped 1% but the bulls were able to brush aside the bear attacks as the major indexes finished higher for the most part.
Normally, a warning like this would have knocked the socks of the Nasdaq and Microsoft but it’s no shock the evolution of smartphones has hurt the PC industry although we still think of the home computer as “home base”. Microsoft is adapting, and well we might add, though Wall Street might disagree as one suit-and-tie cut the company’s earnings estimates yesterday.
The Dow fell 13 points, or 0.1%, to settle at 12,449. The index did manage to sneak into positive territory just before the closing bell to hit 12,462 and the low came in at 12,399 which means support held.
The S&P added a half-point to close at 1,292.48. The high was at 1,293 as the bulls continue to keep their eyes on a move above 1,300. The low came in at 1,285 which was easily above the 1,275 and 1,250 support levels we have been covering.
The Nasdaq gained 8 points, or 0.3%, to finish at 2,711. Tech traded below the 2,700 level at the open and kissed a low of 2,690 before finally turning the corner shortly after lunch.
We mentioned earlier this week the market would have to deal with some debt offerings from Italy and Spain which could create some headwinds for the bulls. The good news is the auctions were this morning and they went well.
It looks like another busy day as we will be releasing 6 NEW TRADES for our Weekly Wrap this morning. Look for them shortly after the open. With 10 possible current trades ready to be called away next week, we want to reload the portfolio. Folks, the average return on the trades will be double-digits and if you can average these types of returns on a monthly basis you will easily double your money in a year.
To twist your arm even more to make you say “money”, we are also offering a 1-year membership to our Weekly Wrap for just $299. This publication is normally priced at $599 so it represents a savings of 50%. You can use the coupon code 5F181DD20D thru the end of this month to join and please make sure you choose the 1-yr subscription model for the WEEKLY WRAP. This newsletter ended 2011 with a 16-0 track record and aims for monthly double-digit profits. Remember, we currently have 10 trades that could get called away in the next week for mid to high-teen double-digit returns and 6 more coming your way today. For those of you who subscribe to our Daily, here is your chance to get on the Weekly Wrap bandwagon as well.
We may also add a NEW TRADE or 2 to our Daily newsletter which has stayed hot in 2012. The trades are listed on our Watch List and are thisclose to becoming official recommendations.
Futures are up as we head to press and look like this: Dow (+19), S&P (+3), Nasdaq (+6).
Subscribers, check the Members Area for the updates and stay on your toes for NEW TRADES and possible PROFIT ALERTS throughout the morning.
Tags: covered call options, MSFT, Weekly Stock Market Wrap
Posted in Covered Calls, Market Analysis, Market Commentary | Comments Off