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Thursday, November 18th, 2010
12:10pm (EST)
It has been a big day on Wall Street as General Motors (GM, $35.35, up $2.35) and some great economic news have revved up the bulls’ engines. The market has powered its way back towards its April highs and is up 1.7%, on average, as the major indexes push towards a breakout.
We were betting on a bullish day which is why we issued two new call option trades yesterday to our subscribers. In our video, which we released earlier this morning explains why today was so bullish and what we see with a few of our current trades. The bears were unable to break support on Wednesday and they tried several times before throwing in the towel.
With GM on deck, there was no way the bulls were going to let the market flop. Now, that’s not to say we have the “all clear” sign again but we mentioned in our Members Area this morning how this year is setting up just like last year. We were talking about one of our trade recommendations and the market in general. In fact, here is an excerpt:
“The other part of the story was to remind you that things could get volatile in the market. On Black Friday, 2009, the Dow fell nearly 300 points in a half session and traded in a range of 10,454-10,179 before finishing 150 points down. The index hit a low of 10,207 by the second week of December before touching 10,600 by year-end and then 10,763 by mid-January 2010. And here we are now.
Just remember this if things get volatile. We may be looking at the same exact ride for the market and (our current trade) but don’t flinch!” (END)
The Dow is up a whopping 172 points, or 1.6%, and is at 11,180. We would love to see the index trade and close above 11,200 which would be a clear sign that our charts are leading us in the right direction. The index has traded to a high of 11,199. We have mentioned how the market would test support after breaking resistance so nothing has changed on the road map. We still expect a push towards Dow 11,600 and with Ireland thisclose to accepting a bailout, the clouds are clearing and the uncertainty is lifting which is good for the market.
The S&P 500 is showing a 20 point pop and is at 1,198 and a stone’s throw from clearing 1,200. The index has kissed 1,199 and a close above this level would be golden.
The Nasdaq is on fire and is pushing higher by 45 points to 2,520. Back above 2,500, sweet.
As David Essex would say…”Hey, bulls…rock-in-roll..rock on…oh, my soul. Hey kids…”
You get the picture. We are rocking today. Subscribers, check the Members Area for the updates.
Tags: bear market, binary options, bull market, call option, dndn, General Motors, GM, how to trade options, Momentum stocks, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off
Wednesday, November 17th, 2010
12:30pm (EST)
The market has traded in a tight range today as the bulls look to hold the first wave of support while the bears are trying to extend their momentum. The major indexes are on track for their second weekly loss in-a-row which hasn’t happened since August and the market is at a critical stage.
Currently, the Dow is up 8 points to 11,032 while the S&P 500 is up 4 points to 1,182. The Nasdaq is higher by 13 points to 2,483.
If the bulls fail to hold Dow 10,800; S&P 500 1,150; and Nasdaq 2,400 – then we could easily fall back into a trading range or worse. The good news is if the market can hold support then it has a chance to do something really special going forward.
As far as economic news, the Labor Department reported the consumer price index (CPI) rose by 0.2% in October from September’s 0.1% pop. Excluding fuel and energy, the core CPI was unchanged for the third straight month. Wall Street was expecting slightly higher numbers.
Elsewhere, the Commerce Department said U.S. housing starts fell 11.7% in October to a seasonally adjusted annual rate of 519,000. The suit-and-ties had forecast a number of 590,000 starts.
No news, yet, on Dendreon (DNDN, $35.87, flat) which is still halted pending an announcement. We sent out a New Flash earlier this morning as Provenge awaits its fate.
There is also a lot of action in Human Genome Sciences (HGSI, $25.42, down $0.46) after an advisory panel recommended approval of its lupus drug, Benlysta, while analysts questioned its effectiveness. A final decision is expected in early December by the FDA which usually follows the board’s recommendations.
As usual, we have a lot to cover in our Members Area as we have 2 NEW TRADES for today! We also have some important events coming our way concerning a few of our other trades. Let’s get on it!
We will be back in the morning at 9am with our next update and if we get some news on Dendreon, we will try to send out another News Flash.
Tags: bear market, binary options, bull market, call option, General Motors IPO, GM, GM IPO, how to trade options, Momentum stocks, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Company Commentary, Trading Psychology, Trading Tips | Comments Off
Wednesday, November 17th, 2010
8:45am (EST)
The bears notched another solid victory on Tuesday as global chaos in the financial and commodity sector continued to weigh on the market. The pounding the bulls took came on renewed fears of a potential rate hike from China and the potential bailout of Ireland - similar to the one given to Greece, which is still blowing up.
A quarter-point rate increase from the Bank of Korea also reminded Wall Street the threat of a currency war is still a real possibility and didn’t help matters. The raising of rates around the world can have a ripple effect of slowing down demand for basic materials and then growth which would not be good for the market.
Ireland’s Prime Minister has said the country has enough cash on hand to meet its funding needs through mid-2011, but there are reports the country is holding negotiations to receive a bailout. We expect European Union officials to push through some kind of rescue package but they better get ready for Portugal and Spain who will be next in line.
Against this backdrop, we knew going into the open yesterday that major support levels would be tested and they were.
The Dow got hammered for nearly 180 points, or 1.6%, and finished at 11,023. The index traded to a low of 10,978 and fell below 11,000 for the first time in nearly a month. We are still bullish but a break below 10,800 will hurt the case. The Dow is still trading above its 50-day moving average, which is a good sign, but not by much.
The S&P 500 fell 20 points, or 1.6%, to close at 1,178. The index traded to a low of 1,173 which was right in the middle of our 1,170-1,175 zone we said to watch for yesterday. There could be a test down to 1,150 for the S&P, and if so, it will be make-or-break time for the bulls.
The Nasdaq also fell below our first support target of 2,500 by dropping 44 points, or 1.8%, to settle at 2,469. We were looking for the index to hold 2,475, and there is additional support at 2,450, but a break below 2,400 would not be good.
As far as specific news this morning, demand for General Motors (GM) stock has been so strong that the company will expand its initial public offering (IPO) by 113 million shares, or 31%, to 478 million common shares. The move, coupled with the sale of GM preferred shares, could bring the total value of the deal to $22.5 billion.
We mentioned yesterday that Visa (V, $74.99, down $1.37) has been the largest IPO in U.S. history to date, but GM’s offering could top Agricultural Bank of China’s $22.1 billion score in July to become the globe’s largest IPO ever.
The indexes finished off their lows yesterday, barely, which leads us to believe we could test the second waves of support we have outlined. However, futures are pointing towards a slightly higher open so we shall see.
Subscribers, check the Members Area for the trade updates.
Tags: bear market, binary options, bull market, call option, General Motors IPO, GM, GM IPO, how to trade options, Momentum stocks, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Company Commentary, IPOs, Market Analysis | Comments Off
Tuesday, June 2nd, 2009
2:20pm (EST)
General Motors (GMGMQ, $0.58, down $0.17) has a new stock symbol after it was suspended from the New York Stock Exchange following the company’s bankruptcy filing yesterday. More importantly, GM was removed from the Dow.
History lesson of the day – the stock had been part of the Dow since 1896 which was originally comprised by Charles H. Dow. The index is now chosen by the editors of The Wall Street Journal and I have touched on the two stocks going in and the two coming out, GM being one of them.
For the time being, GM will trade on the Pink Sheets, under the symbol GMGMQ. The key thing to remember is that the shares have no value and are expected to be wiped out in bankruptcy court.
All of this has meant good news for Ford (F, $6.25, up $0.12) which is up another 2% today. The company has said it will increase production and sales came in better-than-expected although the decline was 24% in May compared to year ago levels. Still, Ford reported its strongest domestic sales month since July 2008.
DryShips (DRYS, $8.01, up $0.22) looks tempting but I just don’t trust it.
Intuitive Surgical (ISRG, $158.36, up $9.08) has been a hot topic in past blog posts but it’s hard to believe I haven’t mentioned it since January when it was at $96. Since April 8th, the the stock has shot up over 60 points. Wow. I missed that one folks…
Rick Rouse
Rick@OptionsMentoring.com
Tags: Ford, GM, Intuitive Surgical, options blog, options trading service
Posted in Company Commentary, Option Trades | No Comments »
Monday, June 1st, 2009
9:30am (EST)
Like cotton on sheep, the bulls are all over the opening bell. The Dow just opened and is currently up 110 to 8,610; the Nasdaq is up 22 to 1,796 and the S&P 500 has added 12 and is at 931.
The big news of course is General Motors which filed for Chapter 11 bankruptcy. The news is being viewed as positive and many think GM will come out leaner and meaner. Um, I’m speechless about this subject right now. I’m still in shock on how a company can lose so much tax-payer money in a short period of time. The stock has yet to open and it remains to be seen if it will keep the same symbol or trade under a new one.
The other surprise is that there were two replacements announced for the Dow. Cisco Systems (CSCO, $19.08, up $0.58) and Travelers (TRV, $41.53, up $0.87) will replace Citigroup (C, $3.73, up $0.01) and GM (GM, $0.52, down $0.23) which just opened. The GM June 1 puts (GMVR, $0.67, up $0.07) are up 10% and that was an easy trade from Friday. Making 10% over a weekend isn’t a bad gig.
Freeport-McMoRan (FCX, $57.52, up $3.09) keeps on Rocking the Free World as it is up nearly 6% this morning. Neil Young would be proud of this performance. The June 55 calls (FCXFK, $4.50, up $1.72) have now officially doubled from an entry price of $2.10 on May 20th. The June 60 calls (FCXFL, $2.02, up $0.72) have more than doubled as they were profiled at 80 cents. Raise your stops.
I told you last night in the Weekly Wrap that Freeport was in a “breakout” and it is clearly visible today. As you know, this was the two last trades I provided before our new trading service launches. Please read the next blog to find out more. The response has been overwhelming and I encourage you to send me an email. Slots are filling up fast.
Rick Rouse
Rick@OptionsMentoring.com
Tags: Cisco Systems, Citigroup, Freeport-McMoRan, GM, Travelers
Posted in Market Analysis, Option Trades, Uncategorized | No Comments »
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Bulls “Rock On”
Thursday, November 18th, 2010
12:10pm (EST)
It has been a big day on Wall Street as General Motors (GM, $35.35, up $2.35) and some great economic news have revved up the bulls’ engines. The market has powered its way back towards its April highs and is up 1.7%, on average, as the major indexes push towards a breakout.
We were betting on a bullish day which is why we issued two new call option trades yesterday to our subscribers. In our video, which we released earlier this morning explains why today was so bullish and what we see with a few of our current trades. The bears were unable to break support on Wednesday and they tried several times before throwing in the towel.
With GM on deck, there was no way the bulls were going to let the market flop. Now, that’s not to say we have the “all clear” sign again but we mentioned in our Members Area this morning how this year is setting up just like last year. We were talking about one of our trade recommendations and the market in general. In fact, here is an excerpt:
“The other part of the story was to remind you that things could get volatile in the market. On Black Friday, 2009, the Dow fell nearly 300 points in a half session and traded in a range of 10,454-10,179 before finishing 150 points down. The index hit a low of 10,207 by the second week of December before touching 10,600 by year-end and then 10,763 by mid-January 2010. And here we are now.
Just remember this if things get volatile. We may be looking at the same exact ride for the market and (our current trade) but don’t flinch!” (END)
The Dow is up a whopping 172 points, or 1.6%, and is at 11,180. We would love to see the index trade and close above 11,200 which would be a clear sign that our charts are leading us in the right direction. The index has traded to a high of 11,199. We have mentioned how the market would test support after breaking resistance so nothing has changed on the road map. We still expect a push towards Dow 11,600 and with Ireland thisclose to accepting a bailout, the clouds are clearing and the uncertainty is lifting which is good for the market.
The S&P 500 is showing a 20 point pop and is at 1,198 and a stone’s throw from clearing 1,200. The index has kissed 1,199 and a close above this level would be golden.
The Nasdaq is on fire and is pushing higher by 45 points to 2,520. Back above 2,500, sweet.
As David Essex would say…”Hey, bulls…rock-in-roll..rock on…oh, my soul. Hey kids…”
You get the picture. We are rocking today. Subscribers, check the Members Area for the updates.
Tags: bear market, binary options, bull market, call option, dndn, General Motors, GM, how to trade options, Momentum stocks, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off