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Wednesday, August 29th, 2012
12:10pm (EST)
It’s been another boring day on Wall Street but an exciting one for our portfolio. As the tight trading range continues, we will have to entertain ourselves with earnings and economic news until Big Ben speaks on Friday.
Joy Global (JOY, $50.78, down $2.29) is down 4% after reporting earnings that missed Wall Street’s expectations. The company reported a profit of $194 million, or $1.82 a share, on revenue of $1.39 billion. The suit-and-ties were looking for $1.88 a share on $1.42 billion in sales. The company also lowered its outlook for the rest of the year.
We talk about gold and silver from time to time and this month both metals have surged to possible new breakout levels. Gold did a great job in holding the $1,550 level all summer and has broken through its downtrend line from 2011 as it pushes $1,700 an ounce. This could be a false breakout but if support holds there could be a run to $1,800 coming. Watch the $1,650 level for a possible reversal signal and a move below $1,600 again would be bearish. Gold is currently down $11 to $1,658 an O.

Here is the chart for silver which has made a strong recovery off the $26 lows which has served as solid support. As you can see from the 2-tear chart, a move to $34 appears to be in the cards over the near-term but the pullback in February is also reminding us silver could be topping. Silver is currently down 15 cents to $30.73.

We have a lot more stuff to talk about but we are more interested in our option trades so we will leave it there for now.
The Dow is up 4 points to 13,107 while the S&P 500 is higher by a point to 1,410. The Nasdaq is lower by a half-point to 3,076.
Our subscribers locked-in huge profits this morning on our current WellPoint (WLP, $61.90, up $4.51) call option trade which is showing a gain of nearly 250%. We also have another trade that is pushing an 80% profit as well. Although we have targeted a 100% return for this blue-chip trade, we also want to lock-in HALF profits on our Caterpillar (CAT, $84.73, down $1.28) put options as shares have slipped below $85.
Subscribers, check the Members Area for the updates.
Tags: Gold prices, silver prices Posted in Gold, Sectors | Comments Off
Wednesday, May 30th, 2012
9:00am (EST)
The headlines favored the bears but it was the bulls that started the week with the momentum. Much of the initial excitement was due to China and Greece, which seemed less likely to leave the euro as soon as some have predicted, but a downgrade of Spain (once again) nearly ruined the party. This crushed the euro and pushed the dollar to 2-year highs.
For those of you that subscribe to our Weekly Wrap, we said the best way to play a rising dollar would be the PowerShares DB US Dollar Index Bullish (UUP, $22.80, down $0.02). Those looking to short the euro could use the CurrencyShares Euro Trust (FXE, $124.36, down $0.12) which has fallen over $3 since our update. Both index funds trade options.
Gold ($1,556 oz., down $13), which was doing well, saw a sharp selloff after trading up to $1,584. We have said we expect gold to test $1,450 before reclaiming $1,600 but we like the yellow metal at these levels.
Oil spiked lower on the news before finishing flat at just under $91 a barrel. (continued…)
Tags: FXE euro, gold call options, Gold prices, UUP Posted in Gold, Oil | Comments Off
Thursday, March 15th, 2012
12:45pm (EST)
We have been super busy today but the last 48 hours are what makes option trading so lucrative.
As option traders, profits can come in a hurry and after putting our name on the line and calling for another leg higher in the market BEFORE the start of trading Monday, well, let’s just say it feels good to prove those Wall Street pros wrong, again.
We said over the weekend that last Tuesday’s 1% pullback flushed out the weak hands and the 5-week trading range we had been in was about to make a big move. The “selloff” merely stretched support and we have clearly shown all of this in our chart work over the past few weeks. The break above resistance this past Tuesday has been a goldmine for us although gold itself continues to take a pounding.
Speaking of which, we have never been big buyers of gold but it looks like investors would be safe with buying quarter positions at current levels. Gold is currently up $4 to $1,647 an ounce but could dip to $1,400-$1,450 if it gets ugly. This would be an overshoot of support but we are using the weakness to start quarter positions in silver. Silver is down to $32.33 an ounce but is up 15 cents today. In 2 years, silver will easily be above $40, possibly $50. If it silver goes lower from here, we will buy another quarter position so start small just in case.
As far the market, trading has been choppy but as we head into the second half session the bulls are adding to this week’s gains.
The Dow is up 41 points to 13,235 while the S&P is higher by 8 points to 1,402. The Nasdaq is showing a 17 point pop and is at 3,057.
Our subscribers have more profits to take as our Hard Stop for Pepsico (PEP, $64.08, up $0.02) has been triggered today. This call option trade has made us 50% in just over a week but today’s slight pullback in the morning knocked us out of the trade. We also now have a 400% winner on our hands with American Express (AXP, $56.64, up $0.49) so we are locking up another quarter position of profits.
We have so much more to cover inside our Members Area with our current trades so let’s go see where we things are at.
The profits this week have been enormous and we are giddy as we see a great opportunity over the next 3 months to make even juicier profits. We have been saying since last October that this would be one of the BEST times ever to trade the market and we continue to feel that way. In fact, 2012 could be one of our biggest year ever for profits!
Subscribers, check the Members Area for the latest updates and we will be back in the morning with a full report.
Tags: AXP, Gold prices, PEP, silver Posted in Gold, Market Analysis, Market Commentary, Rick's Account | Comments Off
Tuesday, January 4th, 2011
12:20pm (EST)
The market started off in positive territory but has given up most of its gains as we heads towards the second half of trading. There is a lot going on that is causing a little volatility but for the most part, the market is holding up well.
Oil is down $2 to under $90 a barrel but appears to be going to $100 which would be bad for consumers.
Gold is down nearly $40 to $1,383/ ounce, while Silver is off over $1 to just under $30/ ounce.
As a result, the Dow is lower by 3 points to 11,667 while the S&P 500 is down by 5 points to 1,266. The Nasdaq is down 18 points to 2,673.
We have a lot to talk about in our Members Area so we are short on time. We have 2 NEW TRADES opening and we are closing our first profitable trade for 2011. Subscribers, check for the important updates.
We will be back Wednesday morning with a full update.
Tags: Gold prices, momentum options, Momentum stocks, Oil prices Posted in Gold, Oil | Comments Off
Sunday, June 20th, 2010
10:10pm (EST)
The bulls continued their comeback by scoring their second weekly win as the market broke key resistance levels and held them. There was little excitement on Friday as the major indexes bounced around the flat line for most of the day.
The Dow finished with a gain of 16 points, or 0.2%, and closed at 10,450. The index got a big pop on Tuesday by adding 215 points and for the week the Dow tacked on 239 points, or 2.3%. The move above 10,400 was important for the bulls as they set their target on 10,600 and maybe 10,800 afterwards.
The S&P 500 ended with a little over a point gain to settle at 1,117 but jumped 35 points, or 2.4%, for the week. The break over the 1,100 level was another sign the bulls aren’t ready to retire. The next assault level will be 1,125 first, then 1,150. More on this in a minute…
The Nasdaq advanced 2 points on Friday and closed at 2,309 but soared 65 points, or 3%, for the week. The index looks like it could run to 2,425 over the short-term if the bulls can continue to push.
The week also saw Gold prices set back-to-back days of record highs and settled at $1,258 an ounce. The yellow metal touched an intra-day high $1,263 on Friday after a nice surge on Thursday.
Gold advanced 2.3% for the five days and was its fourth straight week-over-week advance. While it is easy to speculate Gold could hit $1,300 an ounce, quickly, it just still looks like a crowded trade to us.
The Euro was last seen trading at $1.236 and hit a high of $1.241 on Friday which marked its strongest level since late May. The Euro has risen from a four-year low of $1.188 back on June 7 and has been the main reason the bulls have rallied.
The $1.180 level for the Euro held which was where the currency ended its first day of trading back in January 1999. The 10-year average for the Euro against the Dollar is $1.20 so this level should act as support going forward. However, the results of the ”stress tests”, which measures a bank’s financial stability, on Europe’s 25 biggest banks will become crucial in July and could make or break the currency.
As far as the current outlook, the bulls could continue to run the major averages higher and they got some good news over the weekend. China said that it plans to let its currency fluctuate which could benefit stocks over the near-term. There has been a lot of water-cooler talk on whether China manipulates its currency but a stronger Yuan helps China offset inflation.
There is still a chance this is a “head fake” rally as there was plenty of negative economic news last week from housing to jobs. However, we could see buying until the end of June as fund managers and end of quarter “window dressing” comes into play. Still, the bears cannot be ignored and we are planning for a slight correction by mid-July before the market resumes its higher trend into the back half of the year.
We will be back at 9am Monday morning with a look at earnings and economic news for the week. We may also profile a NEW TRADE to take advantage of any short-term bounce and on our Watch List we take a look at Vivus (VVUS, $10.05, down $0.55).
Tags: Euro currency, Gold prices, momentum options trading, option picks, options alerts, stock options trading, Vivis, VVUS Posted in Market Analysis, Market Commentary | Comments Off
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S&P Triggers 1,400
Thursday, March 15th, 2012
12:45pm (EST)
We have been super busy today but the last 48 hours are what makes option trading so lucrative.
As option traders, profits can come in a hurry and after putting our name on the line and calling for another leg higher in the market BEFORE the start of trading Monday, well, let’s just say it feels good to prove those Wall Street pros wrong, again.
We said over the weekend that last Tuesday’s 1% pullback flushed out the weak hands and the 5-week trading range we had been in was about to make a big move. The “selloff” merely stretched support and we have clearly shown all of this in our chart work over the past few weeks. The break above resistance this past Tuesday has been a goldmine for us although gold itself continues to take a pounding.
Speaking of which, we have never been big buyers of gold but it looks like investors would be safe with buying quarter positions at current levels. Gold is currently up $4 to $1,647 an ounce but could dip to $1,400-$1,450 if it gets ugly. This would be an overshoot of support but we are using the weakness to start quarter positions in silver. Silver is down to $32.33 an ounce but is up 15 cents today. In 2 years, silver will easily be above $40, possibly $50. If it silver goes lower from here, we will buy another quarter position so start small just in case.
As far the market, trading has been choppy but as we head into the second half session the bulls are adding to this week’s gains.
The Dow is up 41 points to 13,235 while the S&P is higher by 8 points to 1,402. The Nasdaq is showing a 17 point pop and is at 3,057.
Our subscribers have more profits to take as our Hard Stop for Pepsico (PEP, $64.08, up $0.02) has been triggered today. This call option trade has made us 50% in just over a week but today’s slight pullback in the morning knocked us out of the trade. We also now have a 400% winner on our hands with American Express (AXP, $56.64, up $0.49) so we are locking up another quarter position of profits.
We have so much more to cover inside our Members Area with our current trades so let’s go see where we things are at.
The profits this week have been enormous and we are giddy as we see a great opportunity over the next 3 months to make even juicier profits. We have been saying since last October that this would be one of the BEST times ever to trade the market and we continue to feel that way. In fact, 2012 could be one of our biggest year ever for profits!
Subscribers, check the Members Area for the latest updates and we will be back in the morning with a full report.
Tags: AXP, Gold prices, PEP, silver
Posted in Gold, Market Analysis, Market Commentary, Rick's Account | Comments Off