|
|
|
|
|
 |
|
|
 |
Friday, April 30th, 2010
12:55pm (EST)
The market looks tired today as all three indexes are trading at their lows for the day. The bulls have done well to battle back from Tuesday’s sell-off but the bears have made it known they want to play.
Earnings are a little light today and we had a big week with a quarter of the S&P 500 companies announcing this week alone. Next week will be heavy as well and we are hoping the bulls can gives us one last push into May.
We mentioned the economy is picking up steam but a slight drop in consumer sentiment is contributing to today’s selling pressure. The gross domestic product (GDP) rose at a 3.2% annual pace in the January-March period which was below the 3.4% rate Wall Street had forecast.
While the GDP was up for the third straight quarter, it was down from the fourth quarter’s 5.6% growth rate. This was inflated by government stimulus spending and companies restocking their depleted inventories so the drop wasn’t all that bad.
Goldman Sachs (GS, $144.70, down $15.54) is also dragging the Financials down which isn’t helping matters, after reports that federal prosecutors had opened an investigation into trading at Goldman, raising the possibility of criminal charges against them.
Shares are down more than 10% and we have been telling our subscribers a break below $150 would be nasty. On Tuesday, shares hit a low of $150.15 which was a clear sign that when $150 broke, all hell was going to break loose.
This is getting ugly for Goldman and the stock will continue to be volatile.
As we head to press, the Dow is off by 65 points to 11,101 while the S&P 500 is down 10 to 1,196. The Nasdaq is lower by 27 to 2,485.
We will be back over the weekend with Sunday’s Weekly Wrap and we continue to watch the gains Dendreon (DNDN, $57.39, up $7.21) is making our subscribers. Those who listened to us on Monday are now up 167%. Winner, winner, chicken dinner…
Subscribers, check the Members Area for the updates. We also have a NEW TRADE!
Tags: Dendreon, dndn, Goldman Sachs, option picks, option signals, options alerts, stock options trading
Posted in Earnings, Financial Stocks | Comments Off
Sunday, April 25th, 2010
6:30pm (EST)
You have to hand it to the bulls…
There was a lot of nervousness in the market last week and Monday was a key day for the bulls. The Dow had closed above the 11,000 level on the previous Friday but the bears were doing some damage and had taken the Dow below that level after the hearing the Securities and Exchange Commission (SEC) was charging Goldman Sachs (GS, $157.40, down $1.65) with fraud.
The Dow had dipped to a low of 10,947 and that level was broken last Monday morning when the index hit 10,940. However, the bulls got a huge emotional lift after they found out late in the afternoon that the SEC’s vote to follow-through with charges of fraud against Goldman wasn’t unanimous and was only secured by a 3-to-2 vote.
The bulls used that momentum and a bevy of solid earnings announcements to power the market to another weekly gain as all three indexes bounced back from that Friday’s debacle.
The market still faces plenty of headwinds with the Financial sector but anyone who has shorted this market is learning you don’t tug on Superman’s cape.
On Friday, the Dow managed to extend its week-long gains with a 70 point burst, or 0.6%, and settled at 11,204. The Dow managed its biggest weekly gain since the week ending March 5th by adding 185 points, or 1.68%, as the bulls left no doubt they are still interested in taking this market higher.
The S&P 500 added 8 points, or 0.7%, and closed at 1,217. The previous high was 1,213 which was taken out on Friday as the index added 25 points, or 2.1%, for the week.
The Nasdaq continues to roll as it enjoyed an 11 point pop, or 0.4%, and closed the week at 2,530. For the five days the index surged nearly 50 points, or 2%, as Tech continues to shine.
Two weeks ago we listed short-term targets of Dow 11,300-11,400; S&P 500 1,250-1,275 and Nasdaq 2,550-2,600 over the next few weeks. We also mentioned that we felt the current rally could last through April and a little into to May. So far, so good.
The bulls made up a lot of ground last week and rebounded nicely which brings those aforementioned targets back into play. Remember, to the downside we have outlined support areas as Dow 10,800-10,500; S&P 1,150-1,100; and for the Nasdaq we have solid support at 2,400 and then 2,250.
We mentioned on Friday we had some exciting news to share and we will finally get the outcome for one of our all-time favorite stocks this week…Dendreon (DNDN, $40.10, up $0.78).
Here are some recent excerpts from our daily commentary and some from our Members Area that will get our new subscribers caught up.
From February 22nd, 2010 (quotes from that day):
“We mentioned Dendreon (DNDN, $32.89, up $0.53) this morning after the stock was up in pre-market trading. JPMorgan (JPM, $40.71, up $0.68) came out with an ”Overweight” rating and a $46 price target on our favorite Drug stock. The call is based upon a belief that Provenge will be approved for advanced prostate cancer.
There are also higher “unofficial” price targets for Dendreon but the drug must get approval first before we say it’s headed past $50. However, we think shares can hit $100 in the next two years if Provenge is approved but it will depend on how well the company handles the transition from “small town Billy” to “big town Bobby” as sales are expected to reach over $1 billion.” (END)
From Feb 4th, 2010:
“The stock (Dendreon was just under $30) has traded in a tight range ($25-$30) since April of last year and each time it gets to these levels it tops out. What is important now is that shares are approaching a “triple-top”. Or so it seems. This is usually a bearish indicator but we all know Dendreon should be getting the all clear sign from the FDA concerning its drug, Provenge.
Traders usually wait for prices to make a definitive break below the confirmation point of a triple top and if prices do not fall below that point then it might not be a triple top. Instead, it could be a bullish sign as shares retreat from the highs of those three tops and then continue on in an upward trend.
The FDA should make its announcement around the first of May and maybe shares do head back down to $25-$26. We have been teased before. The 52-week high is $30.90.” (END)
As you can see, shares have jumped 25%-30% since February and the stock will likely make the water cooler rounds this week. The talking heads will be covering this watershed event later in the week and we are going to try and take advantage of the hype. We will probably pull the trigger on an option trade come Monday morning.
We have a lot of research to do tonight but we wanted to get the Weekly Wrap out a little early. We will be back in the morning with the list of all the companies announcing earnings this week as well as an update for all of our current trades.
We think the bulls could have another big week…
Tags: Dendreon FDA news, dndn, Goldman Sachs, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Hot Stocks, Market Analysis, Market Commentary, Weekly Wrap | Comments Off
Monday, March 8th, 2010
12:50pm (EST)
The bulls are taking a breather as they prepare to take the market higher over the next few weeks. Of course, the bears are still playing and they are getting a little action today but we think the trend is still up.
The Dow is currently down 20 points to 10,545 while the S&P has slipped 2 points and is at 1,137. The Nasdaq, however, is also showing a slight gain and is higher by 4 points to 2,330.
We got some more rhetoric from the President concerning HealthCare which could be weighing on the market. He also took another shot at Goldman Sachs (GS, $169.57, up $2.39) but the stock has been rallying lately off the $165 level.
Imax (IMAX, $14.92, up $1.20) is at fresh 52-week highs after taking in record sales for the opening of Alice in Wonderland. The movie was shown in 188 domestic Imax theaters which contributing $12 million of the film’s overall opening gross of $116 million.
These numbers represent over 10% of the overall domestic box revenues but the kicker is that Imax was only on 3% of the total screens. The company’s average screening was a whopping per $64,362 joint. Overseas, they made another $3 million on 53 screens. Wow.
Imax is a story we have been covering for 3 years and some of our subscribers have been loading up on this stock when it was under $4. We don’t buy stock but we have profiled several call options trades over the past few years that have done well.
The company announces earnings this Thursday.
We have a lot to cover in the Members Area so we want to get our subscribers inside. We also have NEW TRADE we cover in today’s update.
Tags: Goldman Sachs, GS, Imax, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Hot Stocks, Market Analysis, Market Commentary, Option Trades | Comments Off
Tuesday, February 9th, 2010
1:10pm (EST)
Forget the bulls and bears it’s all about the PIGS today.
The market got a huge lift this morning after Wall Street became hopeful that Robin Hood would be helping the Greek debt situation. There is a report that the “euro zone” countries have decided in principle to help debt-stricken Greece and there is news that Portugal hired Barclays and Goldman Sachs (GS, $152.85, up $1.76) to help it sell bonds.
Greece’s finance minister said he cannot call for outside aid, as doing so would send a negative signal to bond buyers, and this will not be a bailout. Still, this has been a dark cloud over the market and it may have been the bulls wild card.
Shares of National Bank of Greece (NBG, $4.10, up $0.68) have rallied 20% on the news but it would be a hard stock to trust.
At a result, the Dow is up 211 points, or 2.2%, to 10,120 while the S&P 500 is higher by 21, or 2.0%, and is at 1,077. The Nasdaq is lagging but is still enjoying a 37 point pop and stands at 2,162.
In economic news, the Commerce Department reported that wholesale inventories were lower by 0.8% in December compared to an expectation that inventories would rise by 0.5% during the month.
Caterpillar (CAT, $53.93, up $3.15) is one of the Dow components that is fueling this huge rally. The stock is up over 6% after an analyst upgrade. Coca-Cola (KO, $54.86, up $2.21) was up 4% after reporting better than expected earnings as revenues benefited from emerging market growth.
Tags: CAT, Goldman Sachs, KO, National Bank of Greece, NBG, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Earnings, Hot Stocks, Option Trades, Sectors, Stock Earnings | Comments Off
Tuesday, January 12th, 2010
1:05pm (EST)
The market is testing the lows we got this morning after trying to battle back from a nasty open. The Dow started with a 72 point loss and fell to a low of 10,591, then recovered most of the losses but is currently down 65 to 11,598.
The S&P 500 is off by 12 points to 1,134 while the Nasdaq is taking one for the team. The index is down 33, or -1.4%, and is trading at 2,279 as we head to press.
There are pockets of strength and one sector that continues higher is the Casino stocks. MGM Mirage (MGM, $11.76, up $0.86) is up 8% after getting an upgrade this morning. Goldman Sachs (GS, $167.43, down $4.13) came out and upped the shares to ”Buy” from “Neutral” and slapped a $16 price target on the stock. Sorry, Goldman, you are a little late to the party.
Our Atlantic City trip was a win-win as we went behind the scenes to see what was up during the holidays. We didn’t come away with the feeling that the industry has turned around overnight but we took notice in the action the casinos were getting.
It was good to get away and when we got back, we profiled a trade in Las Vegas Sands (LVS, $18.50, up $0.13) that has paid off in spades. Last Tuesday, our subscribers placed their bets on some call options and they have nearly doubled their money a week later.
Las Vegas Sands was under $17 when we told our subscribers ”LVS has been a solid past performer in our portfolio and has a shot at $20 if the casino stocks can rally over the next month or so.”
Folks, here is the power of options if you pick the right ones. As you can see, the stock has made a $2 move in a week which is 12% from $17 to $19. If you would have bought 100 shares of the stock it would have cost you $1,700. Today you would have a $200 profit. Not bad.
Now, take a look at what options can do for you. That $1,700 would have bought you 17 call option contracts that were trading for around a $1 last Tuesday. Today, those same call options are standing at $1.85.
If you do the math, 17 x 1.85 gets us 31.45 which means your $1,700 is now worth $3,145 or 95%. Hmmm. An 8% return with the stock or a 95% return by playing options.
We have updated this position in the Members Area…
Another stock we had recent success with is Amazon.com (AMZN, $128.03, down $2.28). We recently profiled a trade that returned our subscribers over 50% but shares are getting hit again today after touching a high of $142 before the end of 2009. We caught some of that action on the way up and recommending closing the trade after looking at the charts. Since then the stock has been torched but has come back down to serious support levels. We are doing the legwork now to see if there is another trade in Amazon…
Also getting our attention is A123 Systems (AONE, $20.75, up $0.05) which has made a huge bounce of its support areas. The stock recently made a run from $14 to $23 in a little over a month and we got some of that action as well. Our subscribers made nearly a 120% return as we had a target of $23-$24 and got out at the top.
See, it does pay to do your homework folks but that is why you have us. We are still on the fence with A123 but we wouldn’t be surprised to see a quick run back to $23.
That is all we got for today and for those of you who care…Kid Rock at the Borgata in Atlantic City on Valentine’s Day and Jay-Z in March. Be there or be square! The Members Area is updated…
Tags: A123 Systems, alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, Goldman Sachs, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, MGM Grand upgrade, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option picks, option price, option selling, option trade, option trade picks, option trading online, options, options alerts, options blog, options expiration, options mentoring, options newsletters, options signals, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management
Posted in Company Commentary, Earnings, Market Analysis, Market Commentary, Trading Psychology, Trading Tips | Comments Off
|
|
|  | | | |
Get RSS Feed
MomentumOptionsTrading.com Weekly Wrap for 4/25/10
Sunday, April 25th, 2010
6:30pm (EST)
You have to hand it to the bulls…
There was a lot of nervousness in the market last week and Monday was a key day for the bulls. The Dow had closed above the 11,000 level on the previous Friday but the bears were doing some damage and had taken the Dow below that level after the hearing the Securities and Exchange Commission (SEC) was charging Goldman Sachs (GS, $157.40, down $1.65) with fraud.
The Dow had dipped to a low of 10,947 and that level was broken last Monday morning when the index hit 10,940. However, the bulls got a huge emotional lift after they found out late in the afternoon that the SEC’s vote to follow-through with charges of fraud against Goldman wasn’t unanimous and was only secured by a 3-to-2 vote.
The bulls used that momentum and a bevy of solid earnings announcements to power the market to another weekly gain as all three indexes bounced back from that Friday’s debacle.
The market still faces plenty of headwinds with the Financial sector but anyone who has shorted this market is learning you don’t tug on Superman’s cape.
On Friday, the Dow managed to extend its week-long gains with a 70 point burst, or 0.6%, and settled at 11,204. The Dow managed its biggest weekly gain since the week ending March 5th by adding 185 points, or 1.68%, as the bulls left no doubt they are still interested in taking this market higher.
The S&P 500 added 8 points, or 0.7%, and closed at 1,217. The previous high was 1,213 which was taken out on Friday as the index added 25 points, or 2.1%, for the week.
The Nasdaq continues to roll as it enjoyed an 11 point pop, or 0.4%, and closed the week at 2,530. For the five days the index surged nearly 50 points, or 2%, as Tech continues to shine.
Two weeks ago we listed short-term targets of Dow 11,300-11,400; S&P 500 1,250-1,275 and Nasdaq 2,550-2,600 over the next few weeks. We also mentioned that we felt the current rally could last through April and a little into to May. So far, so good.
The bulls made up a lot of ground last week and rebounded nicely which brings those aforementioned targets back into play. Remember, to the downside we have outlined support areas as Dow 10,800-10,500; S&P 1,150-1,100; and for the Nasdaq we have solid support at 2,400 and then 2,250.
We mentioned on Friday we had some exciting news to share and we will finally get the outcome for one of our all-time favorite stocks this week…Dendreon (DNDN, $40.10, up $0.78).
Here are some recent excerpts from our daily commentary and some from our Members Area that will get our new subscribers caught up.
From February 22nd, 2010 (quotes from that day):
“We mentioned Dendreon (DNDN, $32.89, up $0.53) this morning after the stock was up in pre-market trading. JPMorgan (JPM, $40.71, up $0.68) came out with an ”Overweight” rating and a $46 price target on our favorite Drug stock. The call is based upon a belief that Provenge will be approved for advanced prostate cancer.
There are also higher “unofficial” price targets for Dendreon but the drug must get approval first before we say it’s headed past $50. However, we think shares can hit $100 in the next two years if Provenge is approved but it will depend on how well the company handles the transition from “small town Billy” to “big town Bobby” as sales are expected to reach over $1 billion.” (END)
From Feb 4th, 2010:
“The stock (Dendreon was just under $30) has traded in a tight range ($25-$30) since April of last year and each time it gets to these levels it tops out. What is important now is that shares are approaching a “triple-top”. Or so it seems. This is usually a bearish indicator but we all know Dendreon should be getting the all clear sign from the FDA concerning its drug, Provenge.
Traders usually wait for prices to make a definitive break below the confirmation point of a triple top and if prices do not fall below that point then it might not be a triple top. Instead, it could be a bullish sign as shares retreat from the highs of those three tops and then continue on in an upward trend.
The FDA should make its announcement around the first of May and maybe shares do head back down to $25-$26. We have been teased before. The 52-week high is $30.90.” (END)
As you can see, shares have jumped 25%-30% since February and the stock will likely make the water cooler rounds this week. The talking heads will be covering this watershed event later in the week and we are going to try and take advantage of the hype. We will probably pull the trigger on an option trade come Monday morning.
We have a lot of research to do tonight but we wanted to get the Weekly Wrap out a little early. We will be back in the morning with the list of all the companies announcing earnings this week as well as an update for all of our current trades.
We think the bulls could have another big week…
Tags: Dendreon FDA news, dndn, Goldman Sachs, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Hot Stocks, Market Analysis, Market Commentary, Weekly Wrap | Comments Off