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Monday, November 23rd, 2009
9:00am (EST)
The futures are pointing towards a higher open this morning as the dollar continues to weaken. The bulls will try to snap a three-day losing streak today and we have talked about the how the market has moved in the opposite direction of the dollar in recent weeks.
Ahead of the opening bell, Dow futures are up 90, to 10,393. The S&P 500 futures are higher by 10, to 1,100, while Nasdaq 100 futures are up 17, to 1,780.
As the dollar weakens, it pushes the value of commodities higher because they become cheaper for foreign investors. A lower dollar has also helped gold reach record highs. Gold has traded higher on 14 out of the last 15 trading sessions and has reached a high of $1,168 an ounce this morning.
As far as economic news, home sales for October are projected to rise to the highest level in more than two years as first-time buyers, anticipating that a tax credit would soon expire, rushed to get in. At 10am (EST) this morning, the National Association of Realtors is expected to report sales rose to a seasonally adjusted annual rate of 5.65 million, up from 5.57 million in September. It would be the highest sales rate in more than two years…
We had a good feeling last night that the market would start the week off strong. Current subscribers can check the Members Area for the trade updates…
Tags: momentum stock option trading, Netflix, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades Posted in Company Commentary, Economic News, Market Commentary, Option Trades | Comments Off
Wednesday, November 18th, 2009
1:00pm (EST)
The market is struggling today but the major averages are holding the support levels we mentioned this morning. The Dow is currently down 36 points to 10,400 while this S&P 500 is off by 3 to 1,107. The Nasdaq is down 16 points to 2,188.
Of course, there are a few stocks that a making some nice moves today.
We were calling “double-digits” for Ford (F, $9.01, up $0.03) back in July when shares were under $8 and said it would be a $10 stock by year-end. We were able to get our subscribers in-and-out of the August 7 calls for a 67% profit in a week. Ford fell below $7 by September and we knew the rebound was coming but we are trying to avoid trading options on stocks under $10.
Ford seems to be the best of breed in the American auto industry and they are doing a lot of good things right now. And remember, they didn’t take money from the government and they didn’t go belly-up. It seems Found On Road Dead don’t mean Jack…
Story telling time…
We were thisclose to pulling the trigger with a trade on Bunge Limited (BG, $62.16, up $3.27) this morning but we hesitated. We already have a trade on in Colgate-Palmolive (CL, $82.51, down $0.33) so we didn’t want two trades going in the same sector. Bunge is active in the agriculture and food business and have their fingers in a lot of pies worldwide. Agriculture has been HOT today…Monsanto (MON, $79.02, up $1.69) and Potash (POT, $114.11, up $3.51) are smoking green as both stocks are up over 2%.
Back to Bunge though. The stock is currently up over 5% and we constantly remind option traders, especially new ones that if a stock moves 5%, you can make over 100% with the right option. Want proof?
At 9:45am this morning, 15 minutes after the market opened, the Bunge December 65 calls (BGWLM, $1.90, up $1.30) were trading for 70 cents or so. They opened at 67 cents and the volume showed up on our option scan. If we sent the trade out we would be writing you three hours telling you to take a 200% profit. Folks, think about that. You can look this quote up and see where it opened and where it is currently trading. This is the power of options and this is the type of trades we target.
The birds were chirping this morning but they didn’t get the worm…
The point is that we have been fielding a lot of questions about our website because we are new and fresh. We know of no other website that actually posts all of their trades (winners AND losers) for the public to judge. After all, the devil is in the details, right?
This has been our mission from the start here at MomentumOptionsTrading.com and that will not change. What will change is our exposure as more investors and traders find out about us.
Remember our promise is to limit our subscriber base to 1,000 people and once we hit that number we will no longer take new ones. There will be a waiting list. Again, we don’t want our trades crowded. Although there are a number of stocks that trade thousands and thousands of options we are also trying to TEACH option traders.
We will be back in the morning with the trade updates and possibly another NEW TRADE!
Tags: momentum stock option trading, Netflix, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades Posted in Company Commentary, Market Analysis, Market Commentary, Option Trades, Sectors, Strategies, Trading Psychology, Trading Tips, Watch Lists | Comments Off
Wednesday, November 18th, 2009
9:05am (EST)
The biggest thing we took away from yesterday’s action in the market was the S&P 500 holding the 1,100 level and the Dow holding 10,400. Trading was choppy but the market ended higher and the U.S. dollar also traded higher. A lot has been made of the correlation and lately when the dollar has been up, the market has traded lower. When the dollar has traded lower, the market has been up…don’t get too caught up this.
The Dow finished the session at 10,437, up 30 points while the S&P 500 added a point to close at 1,110. The Nasdaq closed at 2,203, up a half-dozen points.
All things considering, and it may too early to tell, but these levels that we have been talking about being RESISTANCE for the Dow (10,400), S&P 500 (1,100), and the Nasdaq (2,175) have now become SUPPORT. Again, it’s too early to tell because the bulls are running fast this week.
Now this is important.
Yesterday, we had this to say:
“It would be nice to see the S&P 500 hold 1,100 as we head into Friday’s option expiration. If the index can hold or move higher we could start to see some real pressure on the bears. This is a key level and could give the bulls some momentum if we can push higher.”
To break this down again, it means now the market is holding these levels and there a ton of people who may have to cover their positions. The November options will expire THIS Friday and the ones who have been “short” will now have to cover their bets. That means the bears will be buying the market instead of shorting it.
This could lead to a HUGE rally and our near-term targets remain Dow 10,850 and 1,200 for the S&P 500. The Nasdaq could run to 2,275 but some of the bigger names are looking tired. That is how we see things from this side of the pond.
One stock we are watching this morning is Vivus (VVUS, $8.57, up $0.72). We started noticing some HEAVY call option buying yesterday in both the November and December options chains. Vivus is in the race to bring an obesity drug to the market before a couple of other small biotech companies do.
Arena Pharmaceuticals (ARNA, $3.60, down $o.o8) and Orexigen Therapeutics (OREX, $7.61, down $0.01) are other players but Vivus was the one showing up on our option screen yesterday.
Vivus’ obesity drug, Qnexa, is in phase 3 trials, so some news could be coming out this week or next. The 52-week high for the stock is $12.88 and shares spent much of September in double-digits which is when the high was made. It may be a speculative play but it is one we are researching. Keep an eye on it…
Of course, we have more action going on in the Members Area then a Vegas craps table on payday. We have a number of trades in process right now and we have leaking out the good news all week. Netflix (NFLX, $60.75, up $1.29) continues to impress and has all the makings of a MONSTER trade. We are hoping the stock can match our Priceline.com (PCLN, $209.29, up $3.15) trade which returned our subscribers 468% in just 5 days…current subscribers, check for the updates…
Tags: momentum stock option trading, Netflix, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades Posted in Company Commentary, Market Analysis, Market Commentary, Option Trades, Trading Psychology, Trading Tips | Comments Off
Tuesday, November 17th, 2009
1:15pm (EST)
The market is a little choppy today and is trying to make a comeback as we go to press. The Dow is only down 6 points 10,401 and the S&P is down 3 to 1,106. Meanwhile, the Nasdaq is also lower by 3 points and is currently at 2,194.
It would be nice to see the S&P 500 hold 1,100 as we head into Friday’s option expiration. If the index can hold or move higher we could start to see some real pressure on the bears. This is a key level and could give the bulls some momentum if we can push higher.
Of course, the real action is not out here but in the Members Area where we were able to get into two trades this morning that are already showing a profit. And how could we leave today without saying Netflix (NFLX, $60.50, up $1.04) has smashed through the $60 level like a canon ball though paper? One of our Netflix trades is already showing a sweet 50% profit since last Friday while the other is up 24%. We still don’t think it’s too late to play this one…Current subscribers, check the Members Area for today’s updates…
Tags: momentum stock option trading, Netflix, option trading online, option trading picks, options mentoring, options newsletters, options track record, triple-digit option trades Posted in Hot Stocks, Market Analysis, Market Commentary, Option Trades | Comments Off
Wednesday, April 22nd, 2009
11:20am (EST)
Amazon.com (AMZN, $81.10, up $2.36) had some good news after the bell last night which has helped push the shares past $80. The company has hooked up with TiVo (TIVO, $7.59, up $0.01) and will offer high definition movies and television shows for download to your TV sets through Amazon’s website. Netflix (NFLX, $47.22, up $0.62), somebody is knocking on your door…somebody’s ringing the bell…
The news has helped push the stock past $80 as Amazon now enters the competitive online movie rental business. It’s a crowded field but Amazon has the brand name and muscle to do well in the coming months and years.
I’ve been pretty positive on Amazon over the past month and we played the April 80 calls for a 160% return. Those calls were profiled at 90 cents on March 27th and we starting closing them at $2.35 a week later. If you can’t tell by my body language and from what I’ve been writing, I’m still bullish on the stock.
Those April calls have since expired but the May 90 calls (ZQNER, $2.00, up $0.40) are starting to perform just as well. Many of you got in Monday at $1.40-$1.50 even while the market was tanking and I was still bullish on the stock. I still am but realize that you now have a 50% profit.
The risk going forward is the earnings announcement on Thursday. The cool thing here is that eBay (EBAY, $14.92, up $0.63) announces after the close today. I’ve been telling you that Amazon has been stealing market share from eBay in some areas, so, no matter what eBay says in its earnings, the news should benefit Amazon either way.
If eBay gives cautious guidance, Wall Street will point to Amazon as taking market share. If they miss earnings that could help as well and even if they beat earnings, sentiment will be the sector is doing well.
The point I’m trying to make is that be careful going into earnings holding Amazon as a full position if you have made 50% or more on the trade.
Rick Rouse
Rick@OptionsMentoring.com
Tags: Amazon, eBay, Netflix Posted in Option Trades, Uncategorized | No Comments »
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Futures Pointing Towards Strong Open
Monday, November 23rd, 2009
9:00am (EST)
The futures are pointing towards a higher open this morning as the dollar continues to weaken. The bulls will try to snap a three-day losing streak today and we have talked about the how the market has moved in the opposite direction of the dollar in recent weeks.
Ahead of the opening bell, Dow futures are up 90, to 10,393. The S&P 500 futures are higher by 10, to 1,100, while Nasdaq 100 futures are up 17, to 1,780.
As the dollar weakens, it pushes the value of commodities higher because they become cheaper for foreign investors. A lower dollar has also helped gold reach record highs. Gold has traded higher on 14 out of the last 15 trading sessions and has reached a high of $1,168 an ounce this morning.
As far as economic news, home sales for October are projected to rise to the highest level in more than two years as first-time buyers, anticipating that a tax credit would soon expire, rushed to get in. At 10am (EST) this morning, the National Association of Realtors is expected to report sales rose to a seasonally adjusted annual rate of 5.65 million, up from 5.57 million in September. It would be the highest sales rate in more than two years…
We had a good feeling last night that the market would start the week off strong. Current subscribers can check the Members Area for the trade updates…
Tags: momentum stock option trading, Netflix, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Company Commentary, Economic News, Market Commentary, Option Trades | Comments Off