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Monday, August 2nd, 2010
1:05pm (EST)
There was little doubt the market was going to test resistance levels again today as futures were showing a strong start to the session. Most of the good news came from across the pond as a number of European banks reported better-than-expected earnings and strong PMI data had Wall Street giddy.
The bulls also got a lift after the ISM number came in above expectations. The Institute for Supply Management reported its manufacturing index fell to 55.5% in July from 56.2% in June. Analysts were looking for a reading of 55.0% and anything over 50% indicates growth. Another sprinkle of good news came when construction spending for June showed an increase of 0.1% versus the 0.8% decline that had been forecast.
As a result, the Dow is enjoying a 176 point pop, or 1.7% and is at 10,642. The S&P 500 is up by 21 points, or 1.9%, and is trading at 1,122. The Nasdaq is higher by 34 points, or 1.5%, and was last seen at 2,288.
The Dow has pushed past the 10,600 level and is eyeing 10,800 but we are more concerned with the S&P 500 and Nasdaq as they give a better snapshot of a wider range of industries.
We said in our Weekly Wrap that the upside would be 2,300-2,350 for the Nasdaq and 1,125-1,150 for the S&P and as you can see we are once again right at the first wave of resistance. Perhaps the game-changer will be Friday’s unemployment figures but until the bulls break through it’s hard to jump on their back. It’s also frustrating to side with the bears as they have wasted some good opportunities to get back to middle ground.
One stock going through the same pressures as the market is Research In Motion (RIMM, $56.63, down $0.90). Shares were rallying ahead of Tuesday’s launch of their new, touch smartphone, but are down today after the Mideast said it might suspend use of the device over security concerns.
To make a long story short, the company has until mid-October to come up with a fix for securing encrypted messages but the countries only account for 3% of its total subscriber base. However, if the new BlackBerry 9800 Slider fails to impress users and the threat of other countries following suit with a ban, then RIMM could be in trouble.
There is room for two or three dominate smartphone makers/ providers in the space and RIMM will likely settle for third place once the dust settles. Apple (AAPL, $262.25, up $5.00) and Google’s (GOOG, $491.33, up $6.48) toys are head-and-shoulders above RIMM’s devices and the company is simply playing catch-up.
We have a lot to cover in our Members Area so let’s get on it. We will be back in the morning with another full update so stay tuned.
Tags: AAPL, Apple, call options, GOOG, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, Research In Motion email outage, stock options trading, volatile options
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off
Thursday, December 24th, 2009
2:00pm (EST)
Wall Street closed early today and the bulls left us with more presents. The market finished at new highs for the year as Tech led the way once again. The Dow moved higher by 53 points and settled at 10,520 while the Nasdaq bolted higher by 16 points and closed at 2,285. The S&P 500 also closed at new highs for 2009 and is resting at 1,126 (up 6 points for the day) as we get ready for the holidays.
Volume was light as you would expect in a shortened session and has been over the past few weeks but we told you the market would probably have a good week.
One stock that got some extra Christmas love was A123 Systems (AONE, $21.02, up $1.69). The stock rallied nearly 10% on no real news and we were hoping that we would close above $20 today. We got that and then some.
Meanwhile, First Solar (FSLR, $133.80, up $1.22) bounced back after a rough week and looks like it could easily move 10 points up or down next week. We are still watching for a safe entry point but there are too many headwinds facing us with this one.
Research In Motion (RIMM, $66.92, down $0.69) continues to look like it wants to cry “Uncle” and we think shares are poised for a steep drop. It may or may not happen but we are watching for a break below $65 which could take shares back down to the $57-$58 level. If we break below that, it gets nasty.
We wanted to update the current trades before we head out and they are ready in the Members Area. We also wanted to wish each and every one of you a very, Merry Christmas.
We will be back Sunday night with the Weekly Wrap.
Tags: A123 Systems, alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial, financial investment, First Solar, 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, Research In Motion email outage, 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 Hot Stocks | Comments Off
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Bulls Rally to Resistance/ RIMM at Crossroads
Monday, August 2nd, 2010
1:05pm (EST)
There was little doubt the market was going to test resistance levels again today as futures were showing a strong start to the session. Most of the good news came from across the pond as a number of European banks reported better-than-expected earnings and strong PMI data had Wall Street giddy.
The bulls also got a lift after the ISM number came in above expectations. The Institute for Supply Management reported its manufacturing index fell to 55.5% in July from 56.2% in June. Analysts were looking for a reading of 55.0% and anything over 50% indicates growth. Another sprinkle of good news came when construction spending for June showed an increase of 0.1% versus the 0.8% decline that had been forecast.
As a result, the Dow is enjoying a 176 point pop, or 1.7% and is at 10,642. The S&P 500 is up by 21 points, or 1.9%, and is trading at 1,122. The Nasdaq is higher by 34 points, or 1.5%, and was last seen at 2,288.
The Dow has pushed past the 10,600 level and is eyeing 10,800 but we are more concerned with the S&P 500 and Nasdaq as they give a better snapshot of a wider range of industries.
We said in our Weekly Wrap that the upside would be 2,300-2,350 for the Nasdaq and 1,125-1,150 for the S&P and as you can see we are once again right at the first wave of resistance. Perhaps the game-changer will be Friday’s unemployment figures but until the bulls break through it’s hard to jump on their back. It’s also frustrating to side with the bears as they have wasted some good opportunities to get back to middle ground.
One stock going through the same pressures as the market is Research In Motion (RIMM, $56.63, down $0.90). Shares were rallying ahead of Tuesday’s launch of their new, touch smartphone, but are down today after the Mideast said it might suspend use of the device over security concerns.
To make a long story short, the company has until mid-October to come up with a fix for securing encrypted messages but the countries only account for 3% of its total subscriber base. However, if the new BlackBerry 9800 Slider fails to impress users and the threat of other countries following suit with a ban, then RIMM could be in trouble.
There is room for two or three dominate smartphone makers/ providers in the space and RIMM will likely settle for third place once the dust settles. Apple (AAPL, $262.25, up $5.00) and Google’s (GOOG, $491.33, up $6.48) toys are head-and-shoulders above RIMM’s devices and the company is simply playing catch-up.
We have a lot to cover in our Members Area so let’s get on it. We will be back in the morning with another full update so stay tuned.
Tags: AAPL, Apple, call options, GOOG, how to trade options, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, Research In Motion email outage, stock options trading, volatile options
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off