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Monday, January 30th, 2012
9:00am (EST)
Picking a market top or market bottom is never easy because charts can only help so much. As an option trader, we must deal with time expiration so we have to be right within a certain time frame. We also have to factor in the global markets, cross-current tensions, interest rates, defaults, saber rattling, and other headline risks. However, when all of those factors work in your favor, you can have an incredible ride.
We were probably the only newsletter which called for the Dow to challenge 13,000 back in November. Now that we are here, picking the next trend is a little more difficult because there are a new set of circumstances. The market knows where it will be in 6 months. We don’t and neither do the pros but we have called this one right once the indexes broke out of their trading range 4 months ago.
Trading ranges can last weeks or months and we must now figure out what February and March will bring but the trend is still up and we have outlined support levels to watch on the way down. We have said we expect a pullback in February (which starts Wednesday) but last week’s Fed announcement could have been a wildcard for the bulls.
Sure, at some point, the market will get a pullback. The suit-and-ties and talking heads have been calling for one all month, but the trend is still up and there are a lot of support layers the bears will have to crack to change that. The market didn’t set new 52-week highs, yet, but the bulls came close. We also like to call the overshoot to the upside the “fluff” and it’s quite possible if the bulls continue with their momentum, the market will hit our upper-end targets before the pullback. Either way, we are enjoying the ride and we have our seatbelts fastened.
The Dow fell 74 points, or 0.6%, to settle at 12,660 on Friday. The blue-chips tested a low of 12,630 midday but held short-term support at 12,600 which had been prior resistance…
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007 and we are off to an incredible start for 2012.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter which is 17-1 for January, including 6 triple-digit winners! Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 23-0 on winning trades in 13 months, including 7-0 for January 2012.
Tags: blue-chip stocks, chicken option trade, chicken trade, momentum, momentum options, option mentoring, stock options trading, straddle option trade
Posted in Market Analysis, Market Commentary | Comments Off
Sunday, January 29th, 2012
11:00pm (EST)
1. Market Summary
2. Alfac (AFL) On Deck
3. Earnings
4. Weekly Wrap Portfolio Update
5. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section.)
= = = = = = = = = = = = = = =
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007 and we are off to an incredible start for 2012.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter which is 17-1 for January, including 6 triple-digit winners! Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 7-0 for January. Even better, we could go 8-0 in February. Sign-up now and receive access instantly to our stock options trading recommendations!
Tags: blue-chip stocks, covered call option trade, momentum, momentum options, option mentoring, stock options trading advisors, straddle option trade
Posted in Market Analysis, Market Commentary | Comments Off
Friday, January 27th, 2012
9:00am (EST)
The bulls made a run at the April/ May 2011 highs on Thursday and now the Wall Street pros and talking heads are calling for a pullback. Funny thing is, they have been calling for a correction all month. Economic news was decent and earnings once again came in above expectations but Wall Street was right, the market “pulled back” yesterday.
A bigger-than-expected jump in durable-goods orders, which came in at 3% versus expectations for a rise to 2%, was the good news. The semi-bad, unemployment edged-up as Initial Claims jumped 21,000 to 377,000. This is still below 400K and we said to watch this rise in January. If claims can stay below 400,000 in February, and maybe improve, then the bulls might still have some gas in the tank.
After 4 steps forward, housing took one step back as sales of new single-family homes fell for the first time in four months in December. This was expected in our books as homebuyers usually focus on the holidays in December if they didn’t rush to get into the new house by Christmas or knew the paperwork wouldn’t be finished in time.
If we can get some rebound numbers in February, which starts next Wednesday, then the rally might have further to run. It’s been a warm winter here on the Left Coast this year.
As far as the official numbers -
The Dow dropped a double-deuce (22 points), or 0.2%, to close at 12,734. The blue-chips reached a peak of 12,842, which triggered our 12,800 target we gave back in November, while the low was 12,695.
The S&P 500 slipped 8 points, or 0.6%, to settle at 1,318. The index kissed 1,333 but traded outside our 1,325-1,350 zone after touching a low of 1,313 with an hour to go in yesterday’s session.
The Nasdaq fell 13 points, or 0.5%, to finish at 2,805. Tech traded up to 2,834 and held our 2,800 target after kissing 2,794. We have said to watch 2,887 which is the 52-week high for the index and have mentioned a run to 3,000 could come on fluff.
The S&P Volatility Index (VIX, 18.57, up 0.26) traded down to 16.80 at the open and we have been saying for months the VIX was would move from the mid-30’s, down to 22.50, and then down to 15 on a continued run by the bulls. The “fluff’ should get the VIX down to 15 but we also realize the VIX could trade down to 12. For news subscribers, a declining VIX is bullish.
A few weeks ago we said to be prepared for a pullback in February which doesn’t start until next Wednesday and the first full week of February isn’t until next Monday. With ALL of the suit-and-ties, talking heads, and everyone else going on record this week and saying this week is the top, maybe the market ignores them until February officially starts.
This leaves a lot of room for a run past resistance and the “fluff” could give Wall Street fund managers fits because they are already underperforming the market. This could also get some money off the sidelines from individual investors. The market could also get some positive Greece news today or next week which could also extend a possible 4-week rally into next but the bulls have to hold their lead today which we will cover in the afternoon update.
Then again, the market could pull back but it will take a lot to change the TREND and we have support pegged.
We have closed 3 more winning call option trades this week for profits of 114%, 58% and 107%. We may close one or two more trades today and our 2012 CLOSED Track Record is now 16-1 for the Daily and 7-0 for the Weekly Wrap. Let’s keep the momentum going.
Futures are lower as we head to press and look like this: Dow (-55), S&P 500 (-6), Nasdaq (-7). Subscribers, check the Members Area for the updates.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, VIX, weekly options, what are options
Posted in Market Analysis, Market Commentary, Trade Update | Comments Off
Wednesday, January 25th, 2012
1:15pm (EST)
Futures were strong across the board late last night following Apple’s (AAPL, $445.58, up $25.17) unbelievable quarter but when we saw futures mixed this morning, we knew the bulls would have trouble breaking through resistance. The bears have had the leverage this week as Greece continues to give Europe fits although the Fed’s cautious statements have helped matters.
The Federal Open Market Committee (FOMC) kept the range for the federal funds rate at 0%-0.25%, and repeated interest rates are likely to remain “exceptionally low” but moved the time frame even further out to late 2014. This a big change from the committee’s previous statements, which said in December that rates were likely to remain near dirt levels through at least mid-2013.
Although the markets got a lift on the news, we have been preparing for a pullback and we have used several indicators to help us call this 5-week rally. We have been questioning what will be the next catalyst to take the market higher once earnings season is over and we also said in early November when the Dow was at 11,800 that the index would rally 1,000 points to 12,800. We backed that up by going long a number of call options in which we are still ringing the resister on.
We also worked over the Christmas holidays when the Wall Street pros like to take a break and we said they would miss the rally when they got back. Sure enough, coming into the week, the Dow and S&P were up 4% for the year while the Nasdaq was showing a gain of 7%.
While we would love to see a continued rally, it feels like the market is topping and we want to make sure our portfolio is lean once there is a correction. The good news is that we have continued to play the upside by rolling into new trades while closing half positions in others along the way.
If the market can clear resistance, don’t worry, we won’t miss anything as there will be a wave of buying from Wall Street fund managers and individual investors. However, the headlines aren’t there, yet, for the bulls to run to new highs.
It remains to be seen if there will be a significant pullback and where support might hold but the choppy action is telling us something.
As we head to press, the Dow is down 4 points to 12,671 while the S&P is up a point to 1,315. The Nasdaq is showing a gain of 14 points and is at 2,801. The high for Tech has been 2,804 and it will be interesting to see if the bulls close above or below 2,800 by the close.
We have action to take on a few of our profitable positions so let’s go see where we are at. Subscribers, check the Members Area for the updates.
Tags: binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Hot Stocks | Comments Off
Sunday, January 22nd, 2012
10:30pm (EST)
1. Market Summary
2. Nucor (NUE) – A Core Holding
3. Earnings
4. Weekly Wrap Portfolio Update
5. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section.)
*******************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007. We are off to a fast 14-1 start for 2012 and our subscribers have already closed 3 triple digit winning trades for gains of 124%, 100%, and 131% and another call option trade for 82%.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and went 16-0 for 2011 and is 8-0 so far in 2012 after the trades we closed on Friday. Sign-up now and receive access instantly to our stock options trading recommendations!
If you are missing these juicy profits come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2011 Track Records by sending us an email or filling out the box to the right.
Tags: blue-chip stocks, covered call option trade, momentum, momentum options, option mentoring, stock options trading advisors, straddle option trade
Posted in Hot Stocks, Market Commentary | Comments Off
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Bears Growling as Bulls Push 52-Week Highs
Monday, January 30th, 2012
9:00am (EST)
Picking a market top or market bottom is never easy because charts can only help so much. As an option trader, we must deal with time expiration so we have to be right within a certain time frame. We also have to factor in the global markets, cross-current tensions, interest rates, defaults, saber rattling, and other headline risks. However, when all of those factors work in your favor, you can have an incredible ride.
We were probably the only newsletter which called for the Dow to challenge 13,000 back in November. Now that we are here, picking the next trend is a little more difficult because there are a new set of circumstances. The market knows where it will be in 6 months. We don’t and neither do the pros but we have called this one right once the indexes broke out of their trading range 4 months ago.
Trading ranges can last weeks or months and we must now figure out what February and March will bring but the trend is still up and we have outlined support levels to watch on the way down. We have said we expect a pullback in February (which starts Wednesday) but last week’s Fed announcement could have been a wildcard for the bulls.
Sure, at some point, the market will get a pullback. The suit-and-ties and talking heads have been calling for one all month, but the trend is still up and there are a lot of support layers the bears will have to crack to change that. The market didn’t set new 52-week highs, yet, but the bulls came close. We also like to call the overshoot to the upside the “fluff” and it’s quite possible if the bulls continue with their momentum, the market will hit our upper-end targets before the pullback. Either way, we are enjoying the ride and we have our seatbelts fastened.
The Dow fell 74 points, or 0.6%, to settle at 12,660 on Friday. The blue-chips tested a low of 12,630 midday but held short-term support at 12,600 which had been prior resistance…
*****************************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007 and we are off to an incredible start for 2012.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter which is 17-1 for January, including 6 triple-digit winners! Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 23-0 on winning trades in 13 months, including 7-0 for January 2012.
Tags: blue-chip stocks, chicken option trade, chicken trade, momentum, momentum options, option mentoring, stock options trading, straddle option trade
Posted in Market Analysis, Market Commentary | Comments Off