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Wednesday, January 6th, 2010
9:00am (EST)
The bulls managed to stage a late comeback yesterday as they pulled the market from its lows and managed to take two-out-of-three “rounds” from the bears.
The S&P 500 managed a 3.5 gain to settle at 1,136 while the Nasdaq posted a half-point to close at 2,308. The Dow opened with the slight gain but spent 99% of Tuesday’s session in the red. The index lost 12 points and finished at 10,572.
We got a mixed bag of economic news yesterday. The Commerce Department reported factory orders rose 1.1% easily beating the 0.5% forecast Wall Street was expecting.
Meanwhile, the National Association of Realtors said its index of pending home sales fell a whopping 16% which caught the market by surprise. It was the first drop after nine months of gains. Some decline had been expected as buyers rushed in to grab homes ahead of the tax credit deadline, but that was later extended so the number was a little bit disappointing.
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As far as specific stocks, Apple (AAPL, $214.38, up $0.37) looks like it will hit $250 sometime soon. There are higher price targets out there on the stock but we wouldn’t be surprised if our target is hit by the end of the month. The company continues to plow over the competition and we are hearing Apple has a major product announcement set for January 27.
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It is no secret Apple will announce a tablet product of some kind and whatever it is and does…it will better than anything currently out there. We would love to play some options on Apple but the premiums are rich and we can get more bang for our buck buying options on stocks under $100.
The ADP National Employment Report came out this morning and is often used as a forecast for the unemployment report. The ADP report was expected to show a loss of 73,000 jobs in December and we got a number north of 80,000. That’s far better than the 169,000 jobs lost in November and futures did improve a little.
As we head to press though, it looks like the market is going to open slightly lower this morning. However, Dow futures are only down 6 so the bulls could come in after the bell.
We have some important updates as far as our option trades this morning. We also profile another NEW trade. Current Subscribers, check the Members Area for the updates.
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Tags: 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, 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, 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 price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, 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 Apple, Economic News, Hot Stocks | Comments Off
Tuesday, January 5th, 2010
1:10pm (EST)
Our trades are hotter than a James Bond Girl…
Folks, the market is slightly lower today but we have got our subscribers into some good trades. The Dow is currently down 34 points to 10,549 as the bulls seem a little tired after yesterday’s huge rally.
The S&P 500 is up a half point and is trading at 1,133 while the Nasdaq is lower by 3 points to 2,305. Although the market is lower we think the rally continues for at least another week.
Imax (IMAX, $14.02, up $0.72) has hit another 52-week high today and we have updated our current option position. We also have another scorcher with our Las Vegas Sands (LVS, $17.99, up $1.37) trade which is up nearly 50% from this morning.
Subscribers, check the Members Area for the updates…
Tags: alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, Casino stocks, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, Imax, 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, Las Vegas Sands, 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 price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, 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, Hot Stocks, Market Commentary | Comments Off
Tuesday, January 5th, 2010
9:05am (EST)
The market got off to a good start for 2010 as the Dow rallied 155 points to close at 10,583. In the process, the index made a 52-week high and was followed by strong gains in the Nasdaq (up 39 points to 2,308) and the S&P 500 (up 18 to 1,132).
The bulls got all the ammo they needed after a strong start as the ISM Manufacturing Index for December exceeded Wall Street’s forecast of 54.3 by improving to 55.9. This was up from 53.6 in November and helped keep the bulls in a buying mood.
Other economic news showed construction spending dropped slightly by 0.6% for November; Wall Street was looking for a 0.5% decline.
Elsewhere, oil prices jumped 3% yesterday to $81.50/ barrel and broke $80 for the first time since November. Gold was up $3.30 to $1,121 an ounce while Platinum surged $57 to $1,509. We normally don’t follow Platinum but we were curious.
There were also other juicy stories unfolding in the market yesterday.
One stock which we have followed for years is starting to show tremendous volatility again. Rambus (RMBS, $23.23, down $1.17) was all over the map and went on a wild ride after our 1pm update on Monday.
The stock opened at $24.80 after closing at $24.40 last Thursday. Then, shortly after 1pm, shares tanked to a low of $16. We weren’t sure of why the reversal was happening but we knew it was litigation news.
Rambus has an antitrust case against several memory chip companies that is scheduled to go to trial on this Friday. We won’t rehash the entire litigation history but you can research some of our past articles on the company from our archives. One thing for sure…the stock will be in focus in the coming days and weeks.
Another stock we are watching for future profits down the road is Vivus (VVUS, $9.44, up $0.24).
The company has a potential blockbuster drug with Qnexa, a treatment for obesity that will be available in early 2010. The company said two late-stage clinical trials went well and asked regulators to approve its drug a week ago.
Vivus has some competition as other “diet’ pills are also expected to debut. Arena Pharmaceuticals (ARNA, $3.52, down $0.03) has also asked the FDA to take a look at their obesity drug, Lorcaserin, while Orexigen Therapeutics (OREX, $7.12, down $0.32) is pushing Contrave by the first half of 2010.
Vivus is the best bet to capture this lucrative market as Wall Street believes Qnexa could be the top go-getter based on the weight loss observed in clinical testing.
Arena’s weight loss drug is safer but Qnexa is also being used in Phase 2 trials to treat diabetes. Talk about two-for-the-money…imagine the cost savings of having the luxury to manufacture one drug to do two things.
It doesn’t stop there either. Vivus also has a drug, Avanafil, which is in phase 3 trials to treat erectile dysfunction and Luramist which is in phase 2 studies for the treatment of hypoactive sexual desire disorder in women.
The 52-week high for Vivus is $12.88 which was hit on September 10, 2009. We think the stock challenges this level again so file this one away. There will be a trade down the road…
As we head to press, Dow futures are slightly lower by a point but have been in positive territory. Current subscribers, check the Members Area for the trade updates and possibly a NEW trade.
Tags: 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, 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, 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 price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rambus, 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, Vivus, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management Posted in Company Commentary, Market Analysis | Comments Off
Monday, January 4th, 2010
1:10pm (EST)
We have updated all of the current trades we are following and they continue to do well. We are running behind so our commentary will be light as we have been spending our morning updating and watching the trades. Current subscribers were delivered another NEW trade this morning which is already showing a slight gain.
As we head to press, the Dow is up 160 points to 10,588.
Oh, Wynn Resorts (WYNN, $63.24, up $5.01) is up almost 9% today on an upgrade. Hmmm, we wonder if the analyst saw the same things we saw when we took a trip to see how business was doing…casinos were packed over the holidays…
Current subscribers, check the Members Area for the updates.
Tags: 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, 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, 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 price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, 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, Hot Stocks, IPOs, Market Analysis, Trading Tips, Watch Lists | Comments Off
Monday, January 4th, 2010
7:45am (EST)
We said in last night’s Weekly Wrap that all eyes will be on the dollar and Friday’s jobs report. As expected, the dollar rose to a two-week-high against the euro this morning and Wall Street is placing bets that Friday’s U.S. employment data could continue to point toward a recovery.
As we get ready to start our day, Dow futures are higher by 56 points while the S&P 500 futures are up by 6.6 points. Meanwhile, the Nasdaq futures are showing a gain of 22 points. These are good signs for us this morning.
As far as economic news for today, the Institute for Supply Management manufacturing index for December is due out and any improvement in the data should support the dollar’s climb. Wall Street is expecting the index is likely to rise to 54.0 from 53.6 in the previous month.
In company news, sales of Avatar topped $1 billion and we pretty much nailed this prediction as well. The film took in nearly $70 million over the three-day weekend and has topped $350 million after just 17 days, folks. Avatar did $130 million overseas to lift its international tally to $670 million, for a worldwide gross of $1 billion.
We have been talking about this flick for quite some time and we have been mentioning how Imax (IMAX, $13.31, down $0.47) could ride the Avatar’s success to new 52-week highs. This was a $4 stock in early 2009 and we kept pounding the table to load up until our knuckles were white. As they say, the squeaky wheel gets the oil and we are hoping shares make a quick run to $15 on the news this week.
We have updated the Members Area this morning with all of our current trades. Subscribers, check for the updates.
Tags: 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, 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, 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 price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, 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, Hot Stocks, Trading Psychology | Comments Off
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Good News Galore
Tuesday, January 5th, 2010
1:10pm (EST)
Our trades are hotter than a James Bond Girl…
Folks, the market is slightly lower today but we have got our subscribers into some good trades. The Dow is currently down 34 points to 10,549 as the bulls seem a little tired after yesterday’s huge rally.
The S&P 500 is up a half point and is trading at 1,133 while the Nasdaq is lower by 3 points to 2,305. Although the market is lower we think the rally continues for at least another week.
Imax (IMAX, $14.02, up $0.72) has hit another 52-week high today and we have updated our current option position. We also have another scorcher with our Las Vegas Sands (LVS, $17.99, up $1.37) trade which is up nearly 50% from this morning.
Subscribers, check the Members Area for the updates…
Tags: alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, Casino stocks, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, Imax, 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, Las Vegas Sands, 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 price, option selling, option trade, option trade picks, option trading online, options, options blog, options expiration, options mentoring, options newsletters, 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, Hot Stocks, Market Commentary | Comments Off