1:00pm (EST)
The market has been in negative territory all morning and we don’t expect much to change in the afternoon session. Most of the indexes are holding support but things could get ugly. We have mentioned how we thought the market was approaching a top in the Weekly Wrap and although it’s too early to tell if we are in correction mood it is starting to feel like one.
Last Friday, we also had this to say:
“We have mentioned our targets for the indexes and from our camp it looks like the market is nearing a top which makes it harder to trade. It’s possible we rally for a few more weeks but once we get to February we think there’s a chance of a 5%-10% pullback.” (END)
If the above scenario does play out like we have mapped out then maybe we see another good buying opportunity. Maybe we don’t and the market will continue even lower. One thing for certain, volatility is picking up.
Currently the Dow is down 183 points to 10,541 while the S&P 500 is off by 18 points to 1,131. Meanwhile, the Nasdaq is getting trounced for a 43 point loss and is at 2,277.
There are some other “interesting” stories that we want to highlight…
We did our best Linda Blair when we heard the news this morning that Apple (AAPL, $211.09, down $3.95) is in talks with Microsoft (MSFT, $30.40, down $0.70) about putting Bing, Microsoft’s search engine, on its iPhone. Apple currently uses Google’s (GOOG, $577.42, down $10.20) search engine. Folks, the war between Apple and Google is growing by the minute and we could be setting up for an epic battle.
Elsewhere, Rambus (RMBS, $24.30, up $$3.17) has finally gotten “its day in court”. The company got a huge $1 billion settlement against Samsung Electronics after years of litigation. The settlement was actually for $900 million but we wanted to round up as we expect Rambus to settle or win its other cases.
Samsung has agreed to drop all claims and will pay the money over five years.
The Gold stocks are taking a step back today and we are eyeing Barrick Gold (ABX, $37.55, down $2.11) as it is resting at support levels. We aren’t quite sure if the stock is ready to fold like a cheap lawn chair or pop like a cork but there is volatility which is something we love when trading options.
We will be back in the morning and we have updated the Members Area for our current trades. Oh, and a special thanks to Eric who did the voice over on our video. Folks, if you haven’t seen it yet, take a peek. Scroll down the home page and you will see it.
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Bears Waking Up
Wednesday, January 20th, 2010
1:00pm (EST)
The market has been in negative territory all morning and we don’t expect much to change in the afternoon session. Most of the indexes are holding support but things could get ugly. We have mentioned how we thought the market was approaching a top in the Weekly Wrap and although it’s too early to tell if we are in correction mood it is starting to feel like one.
Last Friday, we also had this to say:
“We have mentioned our targets for the indexes and from our camp it looks like the market is nearing a top which makes it harder to trade. It’s possible we rally for a few more weeks but once we get to February we think there’s a chance of a 5%-10% pullback.” (END)
If the above scenario does play out like we have mapped out then maybe we see another good buying opportunity. Maybe we don’t and the market will continue even lower. One thing for certain, volatility is picking up.
Currently the Dow is down 183 points to 10,541 while the S&P 500 is off by 18 points to 1,131. Meanwhile, the Nasdaq is getting trounced for a 43 point loss and is at 2,277.
There are some other “interesting” stories that we want to highlight…
We did our best Linda Blair when we heard the news this morning that Apple (AAPL, $211.09, down $3.95) is in talks with Microsoft (MSFT, $30.40, down $0.70) about putting Bing, Microsoft’s search engine, on its iPhone. Apple currently uses Google’s (GOOG, $577.42, down $10.20) search engine. Folks, the war between Apple and Google is growing by the minute and we could be setting up for an epic battle.
Elsewhere, Rambus (RMBS, $24.30, up $$3.17) has finally gotten “its day in court”. The company got a huge $1 billion settlement against Samsung Electronics after years of litigation. The settlement was actually for $900 million but we wanted to round up as we expect Rambus to settle or win its other cases.
Samsung has agreed to drop all claims and will pay the money over five years.
The Gold stocks are taking a step back today and we are eyeing Barrick Gold (ABX, $37.55, down $2.11) as it is resting at support levels. We aren’t quite sure if the stock is ready to fold like a cheap lawn chair or pop like a cork but there is volatility which is something we love when trading options.
We will be back in the morning and we have updated the Members Area for our current trades. Oh, and a special thanks to Eric who did the voice over on our video. Folks, if you haven’t seen it yet, take a peek. Scroll down the home page and you will see it.
Tags: Apple Microsoft iPhone pact, barrick Gold straddle options trade, Bing serach engine, option picks, option signals, options alerts, Rambus litigation issues, stock options trading
Posted in Company Commentary, Gold, Market Analysis, Trading Psychology | Comments Off