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Thursday, March 18th, 2010
9:05am (EST)
The market continued its winning ways on Wednesday as the bulls celebrated St. Patrick’s Day with a bang. We mentioned yesterday the Dow was poised to test our near-term target of 10,800 and we almost hit it.
We got some good economic news that helped fuel yesterday’s rally. The Labor Department said the Producer Price Index (PPI) fell by a steeper-than-anticipated 0.6% in February as declining energy prices sparked the index’s sharpest drop-off in seven months.
As a result Dow finished higher for the seventh straight session with all three major indexes settling at new highs.
The Dow finished with a 48 point gain, or 0.5%, and closed at 10,733 after touching an 18-month high of 10,767. If we can break 10-8 then we could easily see 11,000 come into play, quickly.
Not to be outdone, the S&P 500 added 7 points, or 0.6%, to finish at 1,166. Our target of 1,175 will now come into play and then possibly a push to 1,200.
The Nasdaq also notched another 52-week high and actually kissed our 2,400 target. The index settled at 2,389, up 11 points (0.5%) after touching the 2,400 level for the first time since September 2008.
In earnings news, Nike (NKE, $70.88, up $0.50) is getting a lift this morning after the company reporting earnings of $1.01 a share for the quarter, versus $0.99 a share in the same period last year. Wall Street was expecting the company to report a profit of $0.89 a share.
Sales came in at $4.7 billion versus $4.4 billion last year. Analysts were looking for sales of $4.6 billion. Gross margins increased to 46% from 43% in the same period.
There were a lot of nervous traders on Wall Street who were worried about the quarter and future orders. Those fears were put to bed after Nike said worldwide future orders for Nike brand athletic footwear and apparel, scheduled for delivery from March through July, was $7 billion, or 9% higher than orders in the year-earlier period.
Wall Street considers the futures an indicator of future sales and this is why we are seeing the continued strength in the stock ahead of the bell.
Shares of Nike jumped in after-hours trading last night to over $73 and the gains have held as the stock is showing a pre-market bid of $74+. We were all over this trade like moths on a campfire and our subscribers are easily looking at triple-digit profits on a call option trade we profiled yesterday. In fact, it could turn out to be our biggest trade of the year so far once we close it.
As we head to press, the Dow futures are up 16 point to 10,679 while the S&P 500 futures are showing a 1 point gain and are at 1,162. The Nasdaq 100 futures are showing a 3 point pop to 1,937. Current subscribers, check the Members Area for the hot details.
Tags: Nike, NKE, option picks, option signals, options trading
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Sunday, October 4th, 2009
3:45pm (EST)
Special Note: We are sending today’s Weekly Wrap early. I am away on travel and hope to be back in the office by Monday morning. In case I’m not, this is Monday Morning’s Update. There is a NEW TRADE for Monday morning, Pepsico (PEP, $60.90, up $2.44), that is profiled in the Members Area. Our latest trade, Abercrombie & Fitch (ANF, $30.62, down $1.08) is up 50% in less than a week and we are hoping for the same returns, if not more, for the Pepsico trade. To read the latest update on all of our trades you must be a premium member which gives you full access to our Members Area. Our last closing trade in Nike (NKE, $62.02, down $0.48) netted our subscribers profits of up to 200%….
Market Commentary
It was no bull and all bear last week as the market fell 2% on average. Friday was setting up to be an explosive day as the Dow futures were down over 100 BEFORE the opening bell rang. However, the drop was marginal and although the bulls lost the week, Friday’s battle was a huge victory. The fact that the Dow lost only 20 points is clear indication the bulls aren’t going anywhere.
For the week, the Dow lost 177 points, or 1.8%, and closed at 9,487. The Nasdaq finished the week at 2,048, down 43 points, or 2%. The S&P 500 dropped 19 points, or 1.8%, and settled at 1,025.
The market was hit with a bunch of disappointing economic news and Friday’s unemployment report was suppose to be a canon ball going through paper for the bears. The fact that the bulls held their ground gives further indication there are buyers on the sidelines. It doesn’t matter if the market is overvalued or undervalued, it never does.
The market doesn’t care about our personal wins and losses and although we may be overbought at these levels you can’t deny the action and aggressiveness of the bulls since the March lows. The thing Wall Street forgets to realize is that the market came down from a much higher level as the Dow was standing at 14,000 in 2007…
A 50% drop in the Dow which is where we were in March when the Dow was at 6,500 would mean over a 100% return to get back to the 14,000 level. We certainly know that isn’t going to happen this year but I think it is important for us to remember where we came from. So I don’t buy into that “we have come too far, too fast” spit that we have been hearing. Those same pundits were calling for a “bounce” BEFORE we bottomed at 6,500 because they couldn’t believe the sell-off. Now it’s the opposite.
Third-quarter earnings should give us a better sense of whether companies managed to grow their revenues to produce earnings growth or if we see continued cost-cutting. This helped with 2Q earnings but the same theme might not work this time around.
The bears got a “little taste” of the bulls last week so you know they aren’t going anywhere either. We are still in a volatile, nervous market which means we could get some really big moves in October.
As we head to press, the Dow futures are down 36, S&P 500 futures are off by 6 while the Nasdaq 100 futures are lower by 8. Of course, the overseas markets will affect those numbers and things could change by Monday morning but it appears we could start the week slightly lower.
Subscribers don’t forget to check the Members Area for the latest trade and updates. The update is posted under the Monday, October 5th link.
Earnings
Monday: Mosaic (MOS, $46.18, down $0.25), Robbins & Myers (RBN, $22.60, down $0.41), RPM International (RPM, $18.08, up $0.20) and Team (T, $16.77, down $0.03).
Tuesday: AngioDynamics (ANGO, $13.80, up $0.05), Chattem (CHTT, $64.59, down $0.31), Pepsi Bottling Group (PBG, $37.25, up $0.76) and Yum! Brands (YUM, $33.15, up $0.02).
Wednesday: Acuity Brands (AYI, $30.98, down $0.18), Alcoa (AA, $12.82, down $0.10), Costco Wholesale (COST, $56.47, up $0.78), Family Dollar (FDO, $26.63, down $0.21), Helen of Troy (HELE, $18.83, up $0.13), Monsanto (MON, $74.93, down $0.18), Ruby Tuesday (RT, $7.89, up $0.13) and Wolverine World Wide (WWW, $24.14, down $0.07).
Thursday: International Speedway (ISCA, $27.09, down $0.16), Marriott International (MAR, $25.61, down $0.75) and Pepsico (PEP, $60.90, up $2.44).
Friday: Cantel Medical (CMN, $15.29, up $0.15) and Infosys Technologies (INFY, $47.85, up $0.60).
Rick@MomentumOptionsTrading.com
Tags: anf, momentum options trades, momentum stock picks, Nike, NKE, option blog, option trading picks, options mentoring, options trading, PEP, PepsiCo
Posted in Company Commentary, Economic News, Entertainment Stocks, Financial Stocks, Market Analysis, Market Commentary, Option Trades, Sectors, Stock Earnings, Strategies, Watch Lists | Comments Off
Thursday, October 1st, 2009
We thought we’d share what some of our subscribers are saying about recent trade picks over the past week or so…
Noel
I got into the Nike 60 Call at 1.85, sold at 5.00, also bought a 55 put at 1.05, but got stopped out at .35. What a ride! $2830.00 in the black even with the put. It’s right at 100% return. I hope earnings season coming up is going to look like this trade.
Todd F.
Nice call on Nike. I think I’ll go buy a pair with my profits! : ) I did the straddle for safety but still made 62% on the trade. Not bad for less than 24 hours. If Goldman is right, then the Nov 70s or 75’s could be a steal today.
Paul H.
Hi Rick, what a sweet way to get introduced to Momentum. My first trade (Nike) based on your picks and it a 2x. Thank you!
Noel
Limit order was set at 1.60 on RIMM so it sold. I may have left some money on the table but you can’t go broke making a profit. That was a fun trade. Thank you. Good call. I’ve been watching and trading Rick’s advice since March. It’s usually a fun ride, but I give him heck when it’s wrong to.
Christian
Your service rocks! I made bank on Dendreon last week! The other thing I have to say is that it took me quite a while to find a REAL options trading service like yours. Most of what’s out there is 99% scam and very sketchy. Momentum Options Trading is the first service I found that I can trust and seriously make money with.
Tags: Dendreon, dndn, Nike, NKE, Research in Motion, RIMM
Posted in Hot Stocks | Comments Off
Thursday, October 1st, 2009
9:00am (EST)
The bulls and bears are having a battle this week and the action has been intense. On Wednesday, heavy punches were thrown and by the end of the day, the bears had made it 2-to1 for the week.
On Monday, the Dow rallied 124 points, Tuesday the Dow fell 47 after being down 84 points. Yesterday, the bears took the Dow down to 9,583, a loss of nearly 160 points, before the bulls brought us back to positive territory shortly after 1pm. We got some more selling pressure by 3pm and the bears pulled out the victory as the Dow closed down 30 points and settled at 9,712.
Friday is setting up to be “historic” and we should see a big break either way.
A couple of notes for this morning…
Moody’s (MCO, $20.46, down $0.35) fell to $19 and we were whip-sawed out of a recent trade but I still think it’s headed to $15.
Dust off your Queen albums as CIT Group (CIT, $1.21, down $0.99) looks like it will be the next one to “Bite the Dust”. The company appears to be headed for bankruptcy.
Bank of America’s (BAC, $16.92, down $0.24) CEO, Ken Lewis, can ditto that. He was last seen singing backup vocals as he gave up the head gig after coming back from vacation. This ought to be pretty good news for the stock today. We have had some great success trading BofA this year and although the timing is now right, the stock should be in the $20′s sometime in early 2010.
And finally, Nike (NKE, $64.70) had a banner day and thanks to all of you who emailed us to tell us your good fortunes. A lot of you made upwards of 200% and a lot of you banked up to 75% by playing it safe. This trade felt so good when I was typing it that I knew it was going to be golden. In fact, my fingers are tingling now as I have another trade ready for you this morning. Subscribers, check the Members Area for a New Trade on Abercrombie & Fitch (ANF, $32.88, down $0.39) and for the Current Trade Updates.
As we head to press, Dow futures are down 28, S&P 500 futures are down 4 while the Nasdaq 100 are down 6.
Rick@MomentumOptionsTrading.com
Tags: Abercrombie & Fitch, anf, bac, Bank of America, CIT, CIT Group, MCO, Moody's, Nike, NKE, options picks
Posted in Hot Stocks | Comments Off
Wednesday, September 30th, 2009
1:15pm (EST)
The market was off to a good start until the Chicago PMI number hit Wall Street. Economists were expecting a reading of 52 for September and we got 46, down from 50 in August.
The Dow had been up over 20 points to 9,764 but quickly fell to a low of 9,608, or a 130+ point loss. Currently the index is at 9,724, down 18. As you can imagine, the action has been choppy to say the least.
Of course, one stock that is having an outstanding day is Nike (NKE, $64.82, up $4.73). We went long on call options in Nike yesterday in the 1pm Update in the Members Area and I had talked about the stock in both of Tuesday’s updates.
The company’s slogan is “Just Do It” and subscribers who “Did It” have banked nearly a 200% profit on the call options that were profiled. I said yesterday that the option market was pricing an 8%-10% move for the stock and sure enough it was right on.
I will update the trade in the morning because we don’t have the final closing numbers but make sure you set stops at $4.50. Our entry price was $1.60 and we had initially set stops at $2.75 this morning. The call options I profiled are currently at $4.90 which is officially a 197% gain from $1.60. Just think, a 10 contract trade would have cost around $1,675 yesterday and would be worth $5,ooo right now. Nasty. Nasty good that is…
The call options easily zoomed past that so we are safe and we can easily lock in profits from here on out. Also, you can sell half now or let the $4.50 stop take you out of the trade entirely.
Research In Motion (RIMM, $68.52, up $0.88) is bouncing back today following last week’s sell-off. I’m not ready to make a call on where the stock goes from here but it is getting interesting. Also, I’m looking at a couple of trades today and doing some more research before releasing them. They should be ready in the morning.
Rick@MomentumOptionsTrading.com
Tags: Nike, Nike call options, NKE, options picks, Research in Motion, RIMM
Posted in Apple, Earnings, Hot Stocks, Market Analysis, Market Commentary, Option Trades | Comments Off
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Nike (NKE) Keeps On Doing It
Thursday, March 18th, 2010
9:05am (EST)
The market continued its winning ways on Wednesday as the bulls celebrated St. Patrick’s Day with a bang. We mentioned yesterday the Dow was poised to test our near-term target of 10,800 and we almost hit it.
We got some good economic news that helped fuel yesterday’s rally. The Labor Department said the Producer Price Index (PPI) fell by a steeper-than-anticipated 0.6% in February as declining energy prices sparked the index’s sharpest drop-off in seven months.
As a result Dow finished higher for the seventh straight session with all three major indexes settling at new highs.
The Dow finished with a 48 point gain, or 0.5%, and closed at 10,733 after touching an 18-month high of 10,767. If we can break 10-8 then we could easily see 11,000 come into play, quickly.
Not to be outdone, the S&P 500 added 7 points, or 0.6%, to finish at 1,166. Our target of 1,175 will now come into play and then possibly a push to 1,200.
The Nasdaq also notched another 52-week high and actually kissed our 2,400 target. The index settled at 2,389, up 11 points (0.5%) after touching the 2,400 level for the first time since September 2008.
In earnings news, Nike (NKE, $70.88, up $0.50) is getting a lift this morning after the company reporting earnings of $1.01 a share for the quarter, versus $0.99 a share in the same period last year. Wall Street was expecting the company to report a profit of $0.89 a share.
Sales came in at $4.7 billion versus $4.4 billion last year. Analysts were looking for sales of $4.6 billion. Gross margins increased to 46% from 43% in the same period.
There were a lot of nervous traders on Wall Street who were worried about the quarter and future orders. Those fears were put to bed after Nike said worldwide future orders for Nike brand athletic footwear and apparel, scheduled for delivery from March through July, was $7 billion, or 9% higher than orders in the year-earlier period.
Wall Street considers the futures an indicator of future sales and this is why we are seeing the continued strength in the stock ahead of the bell.
Shares of Nike jumped in after-hours trading last night to over $73 and the gains have held as the stock is showing a pre-market bid of $74+. We were all over this trade like moths on a campfire and our subscribers are easily looking at triple-digit profits on a call option trade we profiled yesterday. In fact, it could turn out to be our biggest trade of the year so far once we close it.
As we head to press, the Dow futures are up 16 point to 10,679 while the S&P 500 futures are showing a 1 point gain and are at 1,162. The Nasdaq 100 futures are showing a 3 point pop to 1,937. Current subscribers, check the Members Area for the hot details.
Tags: Nike, NKE, option picks, option signals, options trading
Posted in Earnings, Market Analysis, Market Commentary | Comments Off