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Wednesday, December 2nd, 2009
1:10pm (EST)
Folks, there is more action in our Members Area than a poker table on payday.
Trading is choppy today as the Dow has darted in and out of positive territory. We are currently at 10,437, down 34 points. The S&P 500 is at 1,107, down 2 points, but is holding 1,100.
We thought we had heard it all with the gold price targets but today an analyst came out and said “Gold $5,000”. We were just talking about this in the morning update and needless to say we are blown away.
In any event, it has helped Barrick Gold (ABX, $47.29, up $1.22) set another 52-week high today. Those December 45 calls (ABXLI, $3.10, up $0.90) we mentioned this morning opened at $2.58.
Another stock that is showing unbelievable strength is Amazon.com (AMZN, $141.05, up $2.55). The stock closed last Friday at $131 but we were hesitant to pull the trigger on an option trade because of the massive sell-off we got on Friday but the stock always seems to rally in the weeks leading up to Christmas.
We have a lot to talk about in our Members Area and we wanted to update the trades we sent out to our subscribers at high noon. If you are not yet a subscriber, we do hope you consider a subscription before we get filled.
Tags: Barrick Gold, momentum stock option trading, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Gold, Market Analysis, Option Trades | Comments Off
Wednesday, December 2nd, 2009
12:00pm (EST)
Current subscribers, please check the Members Area or your email for two new trades today. We will be back at 1pm with our regular update. These trades are listed in the Members Area NOW…
Tags: Barrick Gold, momentum stock option trading, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Hot Stocks | Comments Off
Wednesday, December 2nd, 2009
It’s as if the Dubai news never happened…
The market picked up more momentum on Tuesday, as the Dow added 126 points to close at 10,471. We mentioned in the Weekly Wrap there was evidence of “baby bulls” when we were talking about Friday’s market correction…
“The Dow was pressured right from the jump and at one point sank to a low of 10,230 before finishing the day with a 154 point decline. We had factored in a drop to 10,100 but during the panic, the “baby” bulls stepped-in and lifted the market. The Dow had started the week at 10,318 and we ended at 10,309. The fact this level held while Wall Street was on vacation was impressive given the curve ball we got.” (END)
If you remember, the first reports of the Dubai World debacle had the debt at $60 million and whispers were calling for as much as $80 million in the hole. The fact that they are working to restructure a smaller debt ($26 billion) has put the event in Wall Street’s rear-view mirror.
In fact, the bulls pushed the Dow above 10,500 for the first time since October of last year. We have been calling for Dow 10-8 and given the trend it seems like that target could be reached.
However, let Friday’s “warning” ALWAYS be a reminder that you should try to have both call AND put options in your portfolio. If you will look at all of our trades from 2009, month-to-month, you will notice we like to follow this rule. Sometimes we get caught too and we were stopped out of some nice trades but don’t let these “events” scare you.
We want momentum, either up or down. In other words, we want action. The bulls have been pretty much unstoppable since March and we will top out at some point. Until then, all we can do is play the trend because after all, the trend is your friend…
The dollar continues to get pounded like a porn star and at some point, it too, will rebound. The current trend has been a weaker dollar and a higher stock market. This pattern that has played out for months and we will have to wait and see at what point this doesn’t work anymore.
And Gold…we are already hearing cat calls of $1,600 and Gold $2,000. That worries us but at the same time we continue to watch the gold stocks go bananas. Barrick Gold (ABX, $46.07, up $3.38) jumped another 8% yesterday and set a 52-week high in the process.
We spotted the potential breakout in Barrick Gold back in November and for those of you who have yet to see our Members Area; here was the trade on 11/3/09 that returned our subscribers 38% in two days. (Quotes are from that day)
“Barrick Gold (ABX, $38.97, up $2.46)
Buy to OPEN November 40 calls (ABXKH, $1.20, up $0.73)
These calls have been exploding this morning. They OPENED at 40 cents and we started watching them at 60 cents. These calls could make a run to $2.00 and they are moving fast. Do not pay over $1.30-$1.35 for them. This will only be a one or two day trade and the stock appears to be headed to over $40. Its 52-week high is $42.10.” (END)
If you will notice, our trade setup was for a one or two day window and we followed our trading plan to a “T” by closing the call options for $1.65. We should have stayed on the action and maybe we should have rolled some of those profits into the December 45 calls (ABXLI, $2.20, up $1.49) which zoomed 200% yesterday but we didn’t see the continued breakout in the stock.
We still don’t know how high gold goes but one thing is clear, it is on a roll right now.
Tags: Barrick Gold, momentum stock option trading, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Gold, Hot Stocks, Market Analysis, Market Commentary, Option Trades, Trading Psychology | Comments Off
Tuesday, December 1st, 2009
1:10pm (EST)
The bulls have pushed the market back to pre-Thanksgiving highs as the Dow is enjoying a 118 point gain and now stands at 10,463. The S&P 500 is back over 1,100 and is up 12 to 1,108 while the Nasdaq is up 31 points to 2,175.
We got a couple of mixed economic reports at 10am, but the news still gave the bulls confidence.
The Institute for Supply Management number came in at 53.6 in November from 55.7 in October. Not a good number as we had mentioned that Wall Street was looking for double nickels (55).
We got a huge housing number surprise. The National Association of Realtors said sales agreements rose 3.7% in October from September. It was the strongest level in over 3 years and a gain of over 30% from a year earlier. Many on Wall Street had expected the index would fall but we have been telling you that there may be a trade in the sector.
Gold continues to hit record highs and has topped $1,200 an ounce today. The yellow metal continues to be a safe haven and is up another $15 on a weaker dollar and policy comments from the Bank of Japan.
We would love to talk about more today but we want to get our subscribers into the Members Area. We have plenty to talk about with our current trades and there may be a couple more trades in the morning that we may add…
Tags: momentum stock option trading, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Economic News, Market Analysis, Market Commentary | Comments Off
Tuesday, December 1st, 2009
9:10am (EST)
The market managed to end the month of November with a slight gain as the Dow added 35 points yesterday and finished at 10,344. The Dow and the S&P 500 rose more than 5% in November, their biggest monthly gain since July.
The S&P 500 closed at 1,095, up 4 points yesterday while the Nasdaq closed at 2,144, up 6. The market got its second wind in the afternoon when Dubai World said that its talks with banks revolve roughly $25 billion in debt, a number that is much smaller than the $60-$65 billion that has been floating around.
As a result, the Financial stocks traded higher and closed at their best levels in yesterday’s trading. Bank of America (BAC, $15.85, up $0.38), JPMorgan (JPM, $42.49, up $1.16) and American Express (AXP, $41.83, up $0.99) all had gains of over 2%.
On the flip side, American International Group (AIG, $28.40, down $4.90) dropped 15% yesterday and we were able to get our subscribers into an AIG trade that netted them nearly 50% on half of their positions in just a few hours. We update the trade this morning in the Members Area.
As far as today, we will be watching for the Institute for Supply Management (ISM) number which is due out at 10am. U.S. manufacturing activity is likely to show continued growth in November as Wall Street is expecting a reading of 55 in November, compared with 55.7 reading in October. A reading above 50 indicates growth which is what we would like to see.
Also at 10am, we get a look at construction spending. Economists expect construction spending to have declined 0.5% in October following a 0.8% rise in September. The National Association of Realtors will also release its pending home sales index for October.
As we head to press, the Dow futures are up 63 points to 10,397. S&P 500 futures are higher by 8, to 1,103, while the Nasdaq 100 futures are up 17, to 1,784. Current subscribers, please check the Members Area for the trade updates.
Tags: momentum stock option trading, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Economic News, Financial Stocks, Market Analysis, Market Commentary | Comments Off
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MomentumOptionsTrading.com Morning Update for 12/02/09
Wednesday, December 2nd, 2009
It’s as if the Dubai news never happened…
The market picked up more momentum on Tuesday, as the Dow added 126 points to close at 10,471. We mentioned in the Weekly Wrap there was evidence of “baby bulls” when we were talking about Friday’s market correction…
“The Dow was pressured right from the jump and at one point sank to a low of 10,230 before finishing the day with a 154 point decline. We had factored in a drop to 10,100 but during the panic, the “baby” bulls stepped-in and lifted the market. The Dow had started the week at 10,318 and we ended at 10,309. The fact this level held while Wall Street was on vacation was impressive given the curve ball we got.” (END)
If you remember, the first reports of the Dubai World debacle had the debt at $60 million and whispers were calling for as much as $80 million in the hole. The fact that they are working to restructure a smaller debt ($26 billion) has put the event in Wall Street’s rear-view mirror.
In fact, the bulls pushed the Dow above 10,500 for the first time since October of last year. We have been calling for Dow 10-8 and given the trend it seems like that target could be reached.
However, let Friday’s “warning” ALWAYS be a reminder that you should try to have both call AND put options in your portfolio. If you will look at all of our trades from 2009, month-to-month, you will notice we like to follow this rule. Sometimes we get caught too and we were stopped out of some nice trades but don’t let these “events” scare you.
We want momentum, either up or down. In other words, we want action. The bulls have been pretty much unstoppable since March and we will top out at some point. Until then, all we can do is play the trend because after all, the trend is your friend…
The dollar continues to get pounded like a porn star and at some point, it too, will rebound. The current trend has been a weaker dollar and a higher stock market. This pattern that has played out for months and we will have to wait and see at what point this doesn’t work anymore.
And Gold…we are already hearing cat calls of $1,600 and Gold $2,000. That worries us but at the same time we continue to watch the gold stocks go bananas. Barrick Gold (ABX, $46.07, up $3.38) jumped another 8% yesterday and set a 52-week high in the process.
We spotted the potential breakout in Barrick Gold back in November and for those of you who have yet to see our Members Area; here was the trade on 11/3/09 that returned our subscribers 38% in two days. (Quotes are from that day)
“Barrick Gold (ABX, $38.97, up $2.46)
Buy to OPEN November 40 calls (ABXKH, $1.20, up $0.73)
These calls have been exploding this morning. They OPENED at 40 cents and we started watching them at 60 cents. These calls could make a run to $2.00 and they are moving fast. Do not pay over $1.30-$1.35 for them. This will only be a one or two day trade and the stock appears to be headed to over $40. Its 52-week high is $42.10.” (END)
If you will notice, our trade setup was for a one or two day window and we followed our trading plan to a “T” by closing the call options for $1.65. We should have stayed on the action and maybe we should have rolled some of those profits into the December 45 calls (ABXLI, $2.20, up $1.49) which zoomed 200% yesterday but we didn’t see the continued breakout in the stock.
We still don’t know how high gold goes but one thing is clear, it is on a roll right now.
Tags: Barrick Gold, momentum stock option trading, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Gold, Hot Stocks, Market Analysis, Market Commentary, Option Trades, Trading Psychology | Comments Off