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Friday, January 20th, 2012
9:00am (EST)
The bulls rolled out the red carpet after the bell on Thursday as a number of companies were set to report earnings. Despite the high profile events, the market moved higher as Tech once again led the way.
The Dow gained 46 points, or 0.4%, to finish at 12,625. The blue-chips closed on their highs for the day which opens the door for a test up to 12,800 as the index ended above our near-term 12,600 target.
The S&P added a 6-pack, or 0.5%, to settle at 1,315. The index managed to stay in the green all day after testing the breakeven level shortly after the open. We said there could be fluff up to 1,325-1,350 on the close above 1,300 which would be nice for the bulls to hold going into the weekend.
The Nasdaq jumped 18 points, or 0.7%, and ended at 2,788. Tech made a run at our 2,800 target but fell short after kissing a high of 2,793.
Yesterday’s news is actually today’s headlines as we have a ton of stocks in play ahead of the open. Most noticeably, Google (GOOG, $639.57, up $6.66) shares are down a whopping 10% (like we predicted) after the company missed Wall Street’s estimates. It seems the gains on Thursday ($6.66) were a sign of bad things to come.
Google was down over $60 at one-point last night in extended trading and in pre-market action, shares are down $50 to $590.
Elsewhere in pre-market trading, Intel (INTC, $25.63, up $0.24) is up 2% after they beat estimates and offered in-line guidance for the current quarter. International Business Machines (IBM, $180.52, down $0.55) is trading higher to $185 despite missing analysts’ revenue targets but did up guidance going forward.
And finally, Microsoft (MSFT, $28.12, down $0.11) is pushing $29 after reporting a profit of $6.6 billion, or $0.78 a share, on revenue of $20.9 billion for the quarter. This was slightly below last year’s showing of $0.77 a share on sales of $19.95 billion for the quarter, but slightly ahead of the 76 cents the suit-and-ties had penciled in.
Shares of Microsoft are at $28.77, up $0.65, ahead of the bell. We currently have open trades on this name so look for possible Profit Alerts if we take action. We have a $35 price target on Microsoft by summertime but we want to take advantage of today’s possible pop to lock in profits on our February call options.
Futures are pointing towards a mixed open and look like this: Dow (-16), S&P (-3), Nasdaq (flat).
We also have some other current open trades that we may take action on this morning and we have raised the HARD STOPS for a few of them in case there is a pullback. With the weekend here, we may lock-in some triple-digit profits! Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: GOOG, IBM, INTC earnings, momentum options, MSFT
Posted in Earnings, Google, Market Commentary, Trade Update, Yahoo / Microsoft | Comments Off
Wednesday, January 18th, 2012
9:00am (EST)
The bulls got off to a good start on Tuesday following Monday’s holiday as overnight and morning futures were up significantly before the European markets opened for trading. The major averages surged 1% out of the gate but finished the day giving back half the highs and then some after pushing another layer of resistance. Still, the surge higher put the momentum back on the bulls side following Friday’s setback but the close yesterday wasn’t fancy and didn’t excite us.
The Dow added 60 points, or 0.5%, to finish at 12,482. The blue-chips reached a high of 12,573 as they managed to stay in positive territory throughout the session. The move near resistance at 12,600 clears the way for a run up to 12,800-12,875 with a shot at 13,000 but that might be asking a bit much before we get a pullback. Short-term support is at 12,350 followed by 12,200.
The S&P 500 advanced 5 points, or 0.4%, to close at 1,294. The index reached a peak of 1,303 before fading in the second half and dipping to a low of 1,290. We said a close above 1,300 could lead to some fluff up to 1,325-1,350 while support is at 1,275 with 1,250 serving as backup.
The Nasdaq popped 17 points higher, or 0.6%, to settle at 2,728. Tech managed to kiss a high of 2,742 and came within spitting distance of hitting our 2,750 target. We are still looking for a close above this level before we say the bulls have a REAL good shot at the 52-week high of 2,887. We mentioned the Tech names reporting earnings this week on Monday night and said they could play a big role in a break past resistance or a pullback to 2,650-2,600 if the 2,700 level doesn’t hold.
If Google (GOOG, $628.58, up $3.59), Intel (INTC, $25.04, down $0.10), International Business Machines (IBM, $180, up $0.84) and Microsoft (MSFT, $28.25, flat) can wow Wall Street on Thursday then the bears might have to throw in the towel for awhile. If not, we could get our expected February pullback a couple of weeks early.
As we head to press, futures are up and look like this: (Dow -9), S&P (-2), Nasdaq (+4).
Subscribers, check the Members Area for the specific trade instructions for today as we have set some HARD STOPS for a number of our current option trades. If there is a pullback, we want to protect our triple-digits profits on some trades and close out some of our other higher performing double-digit plays.
We will send out Trade Alerts if they are hit or if we take other action this morning so stay on your toes. Otherwise, we will see you back here on Wall Street’s lunch break.
Tags: GOOG, Google's earnings, IBM, INTC, Microsoft's earnings, MSFT
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
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
Wednesday, January 11th, 2012
12:40pm (EST)
The market has spent much of today’s session in negative territory but Tech is showing strength as we head into the second half of trading. The S&P and Dow are off their lows and are trying to join the Nasdaq as the bears are looking to slow down the bulls momentum into the close.
Tech is showing strength despite Microsoft (MSFT, $27.87, up $0.03) saying PC sales were off about 1%. Our subscribers recently closed a Microsoft January call option trade for a 124% return and we recommended rolling some of the profits into some longer-term options.
Shares appear headed to $30+ as the slight pre-warning ahead of next week’s earnings announcement doesn’t faze us. Microsoft should easily beat analysts’ estimates which is what we are hoping for at least.
While Wall Street is on lunch break, we see an opportunity to add another option trade. We have been watching a put position on a stock that has been on our Watch List and we feel a breakdown is coming.
As we head to press, the Dow is down 46 points to 12,416 while the S&P 500 is off 3 points to 1,288. The Nasdaq is higher by 3 points to 2,705. Subscribers, check the Members Area for the NEW TRADE and for the updates on our current trades.
Tags: Dow, MSFT, Nasdaq
Posted in Market Analysis, Trade Update | Comments Off
Friday, January 6th, 2012
9:00am (EST)
The market started yesterday’s session with a 1% drop at the open but the bears are having a hard time keeping the bulls pinned down. Yesterday’s strength came from an unlikely source but one that packs a lot of punch. Tech has shown some mojo this week as some of the oldies-but-goodies have led the charge higher.
We said in our Weekly Wrap on Monday that some of the larger caps would have to pick up the slack – and the Financial stocks would need to rebound with 4Q earnings starting next week in order for the market to make its next push higher. So far, so, so good.
Microsoft (MSFT, $27.68, up $0.28) has quietly made a move from under $26 before Christmas to nearly $28 which may not seem like much but oh is it ever. The 7% move in the stock has allowed our subscribers to enjoy a 108% gain in the call options we recommended. The charts are pointing to a test to the mid-$30’s sometime in 2012 so we may have to roll this trade into some later dated options as well.
Think about that for a second. In order to make a 100% return on shares of Microsoft, you would need the stock to go from $26 to $52. Considering the stock has been in a trading range of $22-$30 for a few years, this isn’t happening, especially in 6 weeks which is how long it took to play the options.
Also, to buy a 100 shares of Microsoft, it would have cost you $2,600. To buy 10 call option contracts (which controls 1,000 shares) it would have cost you $950, or $95 per option contract. The call options we recommended are now going for $2.70, or $270 per contract. In other words, $950 to $2,700 in 40 days. Not bad.
Cisco (CSCO, $18.92, down $0.07) is within spitting distance of breaking the $20’s after kissing $19 exactly over the past 2 trading sessions. Shares could be of legal drinking age by February or it will be the fastest “double-top” in history if shares retreat. We were recently “called-away” from our Cisco shares for our Weekly Wrap portfolio which was 1-of-the-16 winning trades from 2011 for our Covered Call portfolio.
Bank of America (BAC, $6.31, up $0.50), which is a CURRENT trade or ours as well, surged over 8% yesterday after opening at $5.75. There was a TON of action in the option pits as the BAC January 6 calls (BAC120121C00006000, $0.47, up $0.29) surged 161% after opening at 16 cents.
Even more impressive were the juicy gains the WEEKLY options made. These options expire TODAY but the BAC January 6 WEEKLY calls (BAC12010600006000, $0.33, up $0.30) soared a sizzling 1,000% after opening for two cents. Yes, 2 pennies!
Even though this week hasn’t felt like a breakout, it has been. Support has held like a rock all week and the market has made higher highs and higher lows. The bulls still face headwinds and we have already been exiting trades by closing half positions but we got the top rolled back and we are looking for more action.
The Dow started Thursday’s session with a triple-digit loss but managed to close the gap to end with a loss of only 3 points. The index touched a low of 12,362 and we have mentioned prior resistance at 12,350 should hold as short-term support. Check. There is further support at 12,200 and then 12,000 but we are still expecting a push towards 12,600 and possibly 12,800-13,000 – if 4Q earnings come in strong next week.
The S&P 500 added 4 points to finish at 1,281 after testing a low of 1,265. The 1,250 level has stuck all week and there is backup at 1,225-1,200. However, now that 1,275 is cleared, look for the bulls to push 1,300-1,325.
The Nasdaq jumped 22 points to settle at 2,669. Tech traded to 2,673 and we said if the 2,650 level was cleared on the close we could see a little run to 2,675-2,700 which is where the next big battle takes place. With Cisco and Microsoft pushing 52-week highs, and Apple (AAPL, $418.03, up $4.59) which is just $8-and-change away from it 52-week high, dare we say Nasdaq 3,000?
Futures are up but stay guarded. While we do think a test do the next layer of resistance is coming and 4Q earnings could surprise, we worry about February and what will be the next catalyst to take the market higher (or lower?). Europe, war and oil, White House bickering, and unemployment can offer nasty headlines and are the bears’ wild cards.
As we head to press, futures look like this: Dow (+44), S&P 500 (+5); Nasdaq 100 (+7).
Special Alert: We could be very busy this morning as we close out a few profitable trades and add up to 2 NEW TRADES. We have some beautiful charts to show you today so make sure you check them out inside the Members Area. We will send out a Trade Alert if we take action but we normally like to see how some of the stocks we are following open.
Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: BAC calls options, binary options, call options, futures options, high beta stocks, Hot stocks, momentum options, Momentum stocks, MSFT, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Company Commentary, Covered Calls, Hot Stocks, Market Analysis, Market Commentary | Comments Off
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Microsoft (MSFT) Keeps Momentum, Shares Up
Friday, January 20th, 2012
9:00am (EST)
The bulls rolled out the red carpet after the bell on Thursday as a number of companies were set to report earnings. Despite the high profile events, the market moved higher as Tech once again led the way.
The Dow gained 46 points, or 0.4%, to finish at 12,625. The blue-chips closed on their highs for the day which opens the door for a test up to 12,800 as the index ended above our near-term 12,600 target.
The S&P added a 6-pack, or 0.5%, to settle at 1,315. The index managed to stay in the green all day after testing the breakeven level shortly after the open. We said there could be fluff up to 1,325-1,350 on the close above 1,300 which would be nice for the bulls to hold going into the weekend.
The Nasdaq jumped 18 points, or 0.7%, and ended at 2,788. Tech made a run at our 2,800 target but fell short after kissing a high of 2,793.
Yesterday’s news is actually today’s headlines as we have a ton of stocks in play ahead of the open. Most noticeably, Google (GOOG, $639.57, up $6.66) shares are down a whopping 10% (like we predicted) after the company missed Wall Street’s estimates. It seems the gains on Thursday ($6.66) were a sign of bad things to come.
Google was down over $60 at one-point last night in extended trading and in pre-market action, shares are down $50 to $590.
Elsewhere in pre-market trading, Intel (INTC, $25.63, up $0.24) is up 2% after they beat estimates and offered in-line guidance for the current quarter. International Business Machines (IBM, $180.52, down $0.55) is trading higher to $185 despite missing analysts’ revenue targets but did up guidance going forward.
And finally, Microsoft (MSFT, $28.12, down $0.11) is pushing $29 after reporting a profit of $6.6 billion, or $0.78 a share, on revenue of $20.9 billion for the quarter. This was slightly below last year’s showing of $0.77 a share on sales of $19.95 billion for the quarter, but slightly ahead of the 76 cents the suit-and-ties had penciled in.
Shares of Microsoft are at $28.77, up $0.65, ahead of the bell. We currently have open trades on this name so look for possible Profit Alerts if we take action. We have a $35 price target on Microsoft by summertime but we want to take advantage of today’s possible pop to lock in profits on our February call options.
Futures are pointing towards a mixed open and look like this: Dow (-16), S&P (-3), Nasdaq (flat).
We also have some other current open trades that we may take action on this morning and we have raised the HARD STOPS for a few of them in case there is a pullback. With the weekend here, we may lock-in some triple-digit profits! Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: GOOG, IBM, INTC earnings, momentum options, MSFT
Posted in Earnings, Google, Market Commentary, Trade Update, Yahoo / Microsoft | Comments Off