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Futures Point To Lower Open

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.

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.


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.

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…

Bulls Looking For Momentum

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.

Bulls Come Out Running

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.

Futures Pointing Towards Higher Open

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.

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2012 Closed Trades:
    Our updated 2012 Track Record is now at 85-18 for an 82% win rate. We have closed 24-straight winning option trades since late March!

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    Over the past 5 years we are averaging a 75% winning percentage for all our trades despite volatile, flat and choppy markets. Come see why some of Wall Street's pros are following us instead of the Journal!

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2008 - 2010
Track Record
94.05%
73% winners
Results are NOT compounded.

Request our detailed Track Records which are updated in our Members Area. As soon as you sign-up for a subsciption, you will have access to all open and closed trades for 2011 and past years.

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Trader Comments:

    REGINA L.
    I just want you to know that I love the way you write and explain everything. I am new to this, and have lost 50% of my account until I met you guys. Iit is slowly coming back. I will be calling to set up a year
    of membership rather than the one quarter. Thanks again, and LOVE YOU ALL.

    STEVE T.
    Rick, I appreciate the advice. I think I will just sit back and utilize your selections only for awhile. This will obviously save me a great deal of money in commissions. I have gone thru your entire site including the video on money management. This has brought me to the stark realization that I have been trading too much for too little. I definitely have not been "swinging for the fences", but I also think I have been getting impatient with trades and getting out too fast. This has no doubt caused me too trade too much. I like, and definitely agree on, the advice on money management. Thanks for the help.

    SCOTT H.
    Thank you!!! I held on to the NFLX position since Nov. 13 at a cost of $1.89. Sold ½ on April 14th for a 540% return and the other ½ upon earnings for 702% return. Total profit of $11,615 a 621% return. Keep the recommendations coming and thanks to you and your team for the service you provide.

    PETER G.
    Rick & Team, GREAT Call on NKE for my two trading accounts:
    1) Entry at .65, out at 1.45, 1.55 Profit = $415
    2) Entry at .60, out at 1.75, 1.50 Profit = $485

    LAWRENCE O.
    Hey Rick! Here is an update on what your picks have done in my accounts.

    1) Great call on the JoyG March 55. I bought when you said, then bought again on one of the dips. Booked 80+% profit. Made enough to pay for your service for years to come.

    2) Also booked profits on your Berk Feb 74 (80%) and threw a major chunk of change at the March 75’s (190+%). I would have never known that Buffet's stock had split if it weren’t for your service. Bought the shares also for the long haul. Won’t look at them for another 20 years. Great job on getting us in before the indexes did.

    3) Took profit on your Imax March 12.5. 20 cent trailing stop at 1.90 yesterday. Not sure what the profit on that was, but profit is profit.

    I see that you took a loss on some of these. It’s all good. I look to trade your “ideas” not your exact calls. I THANK YOU! For your ideas and commentary. Keep up the good work. And keep those ideas coming.

    C.J.
    Loving this subscription so far! I got into the BRK feb 76 calls the day you talked about right before the split...now up over 300% (0.70 to 2.475)! Keep the good picks coming and let's see some OSIS and EMC upside soon! Just wanted to share my positive enthusiasm on your newsletter...it gives us individual investors great ideas on not only the options market, but also the broader equity market! Case in point is BRK...I can't always read the breaking business news but its easy to read your twice daily updates on my smartphone...helped me get some BRK shares immediately after the split which I will hold for the long haul! Thanks again!

    SHAUN
    Aloha Rick - Thank you so much for the great CL pick. I am not sure if there was buy-out/merger news or what but at 3PM today Colgate-Palmolive absolutely EXPLODED to the upside, and my calls turned into green candy when they went from 1.40 to 3.8 in a matter of seconds! I even sold a few for over 4.0! Much thanks and keep the solid picks up my friend, honestly. Only a fool would scoff at 267% gains... Peace!

    MICHAEL K.
    I like the fact that you ask for comments from subscribers. Good customer service. By the way, am enjoying the service so far. Some good
    profitable calls. Keep up the good work.

    PARAG P.
    Woo hoo! Out for 50% on WMT this am. Making up for my depression for getting out of pcln for a 30% gain monday :( you the man! any word on the manual? My friend Mike ( who I sent to your service) told me he emailed you about your integrity in reporting fills. I echo that sentiment big time.. keep it up! Cheers!

    JAY P.
    Hi Rick, as a new member all I can say is, 'show off' LOL, with PCLN.

    MIKE
    Rick, I am a new subscriber to your service, and I want to say I am impressed. I am impressed by your results, but more than that I am impressed by your reporting of your fills. You could have easily said you got that Wal-Mart call today for 80 cents, instead you reported 98 cents! Good job and keep it up, I watched the reporting of the fills first, and then I subscribed. Thank You.

    TRISH D.
    Hi, good morning. I jumped the gun a little on this one (PCLN). But still made $1,675.00 profit!! Very happy!! Keep up the good work!! Thanks.

    MIN L.
    Hi there, I have joined recently, and I am very happy to tell you that I am up over $10,000 on your picks in a month. I started on 10/7 with the Intel pick. I'll be your member for life. Please don't quit on us. Also, I am learning a lot about options. I didn’t get in your recent APOL and that gold trade and only had one loss on CHK. I appreciate all the DD you do. I enjoy your market commentaries. Best advice site period, and I have tried a few here and there. Again, you guys rock!

    JOE G.
    Thanks be to Momentum Options Trading for providing me with some fantastic wins. I just started with this service and am up nearly 50% in less than a month. There have been losses, but if I manage them properly, I will continue the best efforts given on the blog (in which there are no complaints). What a great cause for humanity. I feel more confident about my trades and continue to play the wins. Best of all, I am now keeping my regular paychecks in the bank! Thank you!

    GREG F.
    Rick - I wanted to say thanks for getting me started on the right foot with your service. I have made six trades since starting on October 22, 2009. Five are winners and One loser netting me $6,245. Thanks again and keep the trade recommendations coming.

    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.
    What a sweet way to get introduced to Momentum. My first trade 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.”

    JOHN
    “I made $420.00 on ANF in 2 days. Thanks for the trade and updates on getting out of the trade.”

    CHARLES M.
    “I did follow a lot of your trades with 1-2 contracts per trade and YTD I’m up 108%. I try not to follow blindly by not entering all of your trades and sometimes entering the ones you don’t. I entered AIG a few weeks ago against recommendation – that one hurt.”

    BRYAN C.
    “I have been following you for several months and am interested in the new service. I hate to see the free service go away but as they say, “all good things must come to an end”. My ability to join will be greatly influenced by the monthly fee so I’m very curious to see the new prices. Thanks for making April a great month for me and my family.”

    JOHN H.
    “I have really enjoyed the past month since finding your blog. You have made some great calls. I would appreciate info. on the new options mentoring program. Thanks.”

    JEFFREY
    “Hi Rick, I have been following your blog for several months now and I would like to be including on the list for your new service and to receive more information about it. And yes I was a Dendreon winner with your tips. Turned $280 into $7700, and literally saved my butt.”

    ED
    “I made over 6k on your Dendreon trade, and I’m very interested in learning how you pick and trade options. Sign me up.”

    GREG
    “Rick – Wow what a day! I got in at the Dendreon calls at $2.25. Thanks to for your advice. I appreciate that. This company has a lock on this type of therapy and no one else in the world is close. Kind of reminds me of the type of companies that Peter Lynch and Warren Buffet suggest that investments be made in. Companies that can build a moat around their business model, that allows them to charge a premium for their product or service. In other words - a monopoly.”

    KEN
    “Hi Rick, Thank you so much for the Dendreon trade, I made almost $10,000 with that trade with a little over $2,000 investment. You have shown me the power of options trading. Again, thank you so much for all your inputs.”

    GARETT
    “Hi Rick, thanks for the encouragement to play the dendreon calls! did freaking great! Got in the first lot at $1.44 on 3-24-09, sold at $2.45, 70% not bad. Bought it back at $2.30 on 4-7-09 closed out on 4-14-09 for 454% gain! Wow! I love it when that happens. So, thanks the encouragement to get back in when others were saying sell, sell, sell. Keep up the good work.”

    TERENCE
    “Rick – Thanks for Dendreon – it has made all the headlines today! I missed on RIMM earlier, but I’ve been holding onto DNDN calls since 3rd week March. Of course today it all paid off today, as DNDN rocketed up.”

    Jan. 31 2012
    Rick, new member...Studied all current trades, did some chart work,picked ZNGA, PEP, MGM...Sold on Feb. 2 for $3600.00 profit...Cost for 1-year membership to your newsletter was less than $1000.00..All I have to say..Thank you. John H –

    3/18/11
    Rick, I purchased 10 contracts of the Nike March 85 puts Thursday afternoon for $2.00. Thing is, I was upset because the puts went down to $1.60 or so before the market closed. Well, needless to say Nike didn’t impress Wall Street and when I turned on the computer this morning the puts were worth $7.10! Sold them for a $5,100 profit!. Thanks again, you are the MAN. Chuck J-

    2/3/12
    Hi Rick,

    I will start off with a thank you for your time and dedication to all
    the research you and your team commit yourself to. This is not me just being excited about the profits I have accumulated aka (bank) ! You have helped me get back to the passion I had of researching stocks/options. Keith N-

    Hi Rick,

    I want to share my great results on GMCR. Based on your comments on February 15th, I bought 20 options at $0.28. They closed today at $7.00, which is a 2,300% gain. My $560 dollars turned into $14,000 in less than a month. In decades of trading, this is my single best trade ever. Thank you! By the way, the Dow was down 228 points today and I could care less. What a great trade. It proves the amazing power of options. I am so grateful for your service, which calls it straight all the time, your options trading manual, and most of all, your amazing skill
    at finding winning trades. I have attached a copy of the trade from
    my brokerage screen.

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