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Tuesday, April 24th, 2012
9:00am (EST)
The bears had a lot of momentum heading into Monday’s open as headline from around the globe pushed most equity markets lower before Wall Street even opened for business. China came out Sunday night with disappointing manufacturing numbers which weighed on the Asian and European markets while political uncertainty in France also played a role.
The talking heads were encouraged the market finished off its lows but the damage is just beginning if the bears can crack just one more layer of support. It’s funny how the market pros have been calling for a pullback all year and when we finally get one, they panic. After touching new lows they find themselves rooting for a positive close and expect the market to set new highs. This is why they make charts and this is why we tell you not to listen to the suit-and-ties.
The Dow declined 102 points, or 0.8%, to close at 12,927. The index traded to a low of 12,845 but still held current support at 12,800. The ferocious drop of nearly 200 points at the open had us excited as we were able to take profits in 4 trades. We were hoping for a close below support but resistance is back at 13,000 again and we got a lower low.
The S&P 500 gave back a dozen points, or 0.8%, to finish at 1,366. 94. The index bottomed out at 1,358.79 and we are looking for a move below 1,350 this week.
The Nasdaq got hammered for 30 points, or 1%, and ended at 2,970. Tech kissed a low of 2,946 and we were rooting for a close below 2,950. Although we didn’t get it, the action could be a preview of a 100-point drop that is about to take place.
The Russell 2000 also fell a dozen points, or 1.5%, to settle at 791.85. The small-caps traded down to 785 and below 800. We said to look for a push down to 780 which opens the door for a test to 750.
The S&P Volatility Index ($VIX, 18.97, up 1.53) jumped above 20 to a high of 20.27 to start the session but faded as the bulls bounced off the lows. The index still finished up 9% and closed above 17.50 after breaking above its 10-day moving average.
Futures are pointing towards a mixed open and look like this: Dow (+20); S&P 500 (+1); Nasdaq (-7). Subscribers, check the Members Area for the trade updates.
Tags: Dow quotes, futures, option taring, S&P 500
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Tuesday, February 21st, 2012
12:30pm (EST)
The market went into the weekend looking for some kind of resolution to a second Greece bailout and futures were strong on Sunday night heading into Monday’s meeting in Brussels between Europe’s top brass.
The get together stretched late into the evening but after more finagling, an agreement was finally reached. There are still implantation risks but we will save those worries for another day as the bulls are pushing our near-term fluff targets.
Sailing wasn’t all smooth, however, as the major indexes dipped into the red 20 minutes after the open. Despite a brief attempt by the bears to slow the momentum, the bulls were able to brush back their attack.
The Dow broke above 13,000 about 2 hours into trading as has since flip-flopped above and below this level. The blue-chips are currently up 45 points to 12,995 while the S&P is higher by 5 points to 1,367. The Nasdaq is showing a gain of 7 points to 2,959.
We covered a lot of information this morning as far as the market and what targets to look for this week. Let’s leave it there for now because we have a NEW TRADE we are releasing.
The stock was on our Watch List all last week and shares are slightly lower as we head to press which is allowing us a great opportunity to get into the options. Subscribers, check the Members Area for the details and please use limit orders to get the best fill prices. We will be back in the morning with our next update.
Tags: 000, Dow 13, option trading, S&P 500
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Wednesday, February 15th, 2012
1:10pm (EST)
The bulls got off to another strong start and continue to push new highs in some areas while struggling with resistance in others.
We have a ton of action happening with our current trades so today’s update is just the numbers.
The Dow is down 88 points to 12,789 while the S&P 500 is lower by a 4 points to 1,346. The Nasdaq is declining 4 points to 2,927.
We will be back in the morning with a full report. Subscribers, check the Members Area for the option play updates.
Tags: Dow, S&P 500
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Friday, February 10th, 2012
12:30pm (EST)
The market hasn’t had a 1% pullback since December but that could all change by the closing bell.
Futures were weak throughout the night and were showing a 0.5% loss to start today’s session but they got progressively worse as we headed towards the open.
The situation with Greece continues to come down to the wire and it’s hard to imagine to us non-politicians why this has dragged on for so many months. The fact that Greece hasn’t paid back the FIRST bailout should be a clue that the country can’t pay back a second bailout.
All signs have been pointing towards Greece getting another lifeline but Germany and some of the few remaining triple-A countries are raising the red flags and want more guarantees and action.
The major indexes are off their lows but we would imagine they could be tested into the close as not too many investors will want to stay long over the weekend.
The Dow is down 109 points to 12,780 while the S&P is lower by 10 to 1,342. The Nasdaq is showing a decline of 19 points to 2,908.
The S&P Volatility Index ($VIX, 20.44, up 1.81) is up nearly 10% today and 20% for the week (see Weekly Wrap notes from Sunday) while Gold is down $20 to $1,721 an ounce.
We have put in another great week as we were able to close 5 more winning trades for gains of 83%, 200%, 50%, 4% and 79%. We did have one trade take a licking but they are March options and we are hoping they come back. This brings our closed winning closed trades to 23-1 for the year. Also, we took “half” profits in all but 5 of these trades and still counted them as ONE winner.
Our option trading competitors don’t like to trade their own accounts and they record “half or third profits” on winning trades 2 or 3 times. If we did that we could say our track record is 46-1 but we like posting real results and keeping our subscribers.
Even at 23-1, we seriously doubt other option newsletters have gotten off to the start we have. Our Weekly Wrap closed 7 winners in January and February could bring 5 more double-digit gains. This would get us to 35-1 for 2012 but we can’t count chickens before they hatch.
Do yourself a favor this weekend and compare our track record and results to anyone you like. You will see why we have become one of the fastest growing stock options trading advisors on the internet. We also have auto-trading partners that verify our results and will do the trading for you, at no charge.
Unless the bulls make a comeback, the bears will win the week and our predication we made in early January for a pullback in the first full week of February could be right on point. We made our subscribers a bunch of cash by telling them to stay long until the end of January and the pullback, if it lasts, will give us another opportunity to let prices come back down so that we can play the next bullish run.
We said there might be an opportunity to buy some put options to play a temporary downside move but we don’t plan to load up on bearish positions because the longer-term trend is still bullish. We do, however, have one put option trade we have been watching for a couple of weeks that we would like to get into today. The stock has been moving like a puppet and we think we are getting a great opportunity to play a short-term trade to the downside.
We will be back Sunday night with our Weekly Wrap but let’s get to the Members Area for the NEW TRADE!
Our next Daily update will be out Monday morning so until then, have a great weekend, everyone. And make sure you request our updated track records or check the Members Area when you sign up.
Tags: Dow, Greece bailout, Greece budget, S&P 500, stock options trading advisors, VIX
Posted in Market Analysis, Market Commentary, VIX | Comments Off
Friday, February 10th, 2012
9:00am (EST)
The market finally got some resolution towards Greece settling its tab, or should we say, making its next loan payment, but nothing is etched in stone and we still have a weekend of uncertainty ahead of us. We aren’t sure what kind of last minute back slapping/ stabbing, hand-shook deals it took to get something accomplished but, in the end, the political suit-and-ties got an agreement that bought them some more time.
The bulls were able to make another push higher but the lack of conviction and tight trading ranges this week, not to mention low volume, are signs the bears are still around. We really didn’t expect a “blow-off” the roof type rally on the Greece news, we did if a deal would have come at the start of the week, but the fact that it took until yesterday was not surprising and it isn’t really a deal. It was another “agreement” on a deal and to be a long story, short, if a check isn’t stroked by next Wednesday, Greece will default in March.
The Dow added 6 points, or 0.1%, to finish at 12,890. The blue-chips traded to a high of 12,924 and took out Wednesday’s 52-week high of 12,893. The Dow is at its highest level since May 2008 which was also the last time the index was above 13,000.
The S&P gained 2 points, or 0.2%, to end at 1,352. The index kissed a high of 1,354 and is at its July 2011 top. The 52-week high is 1,370 which was hit on the first trading day of May 2011.
The Nasdaq advanced 11 points, or 0.4%, to settle at 2,927. Tech reached a peak of 2,930 and is at its highest level since December 2000.
We know all of this stuff because we have an elephant brain and we are chart-a-holics. We are also history buffs and sentiment watchers so we try not to follow the noise.
We have a lot to talk about inside our Members Area this morning so we have to cut it short as we have a few trades to tweak. As
Tags: Dow, Nasdaq, S&P 500
Posted in Market Analysis, Market Commentary | Comments Off
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Support Holds, For Now
Tuesday, April 24th, 2012
9:00am (EST)
The bears had a lot of momentum heading into Monday’s open as headline from around the globe pushed most equity markets lower before Wall Street even opened for business. China came out Sunday night with disappointing manufacturing numbers which weighed on the Asian and European markets while political uncertainty in France also played a role.
The talking heads were encouraged the market finished off its lows but the damage is just beginning if the bears can crack just one more layer of support. It’s funny how the market pros have been calling for a pullback all year and when we finally get one, they panic. After touching new lows they find themselves rooting for a positive close and expect the market to set new highs. This is why they make charts and this is why we tell you not to listen to the suit-and-ties.
The Dow declined 102 points, or 0.8%, to close at 12,927. The index traded to a low of 12,845 but still held current support at 12,800. The ferocious drop of nearly 200 points at the open had us excited as we were able to take profits in 4 trades. We were hoping for a close below support but resistance is back at 13,000 again and we got a lower low.
The S&P 500 gave back a dozen points, or 0.8%, to finish at 1,366. 94. The index bottomed out at 1,358.79 and we are looking for a move below 1,350 this week.
The Nasdaq got hammered for 30 points, or 1%, and ended at 2,970. Tech kissed a low of 2,946 and we were rooting for a close below 2,950. Although we didn’t get it, the action could be a preview of a 100-point drop that is about to take place.
The Russell 2000 also fell a dozen points, or 1.5%, to settle at 791.85. The small-caps traded down to 785 and below 800. We said to look for a push down to 780 which opens the door for a test to 750.
The S&P Volatility Index ($VIX, 18.97, up 1.53) jumped above 20 to a high of 20.27 to start the session but faded as the bulls bounced off the lows. The index still finished up 9% and closed above 17.50 after breaking above its 10-day moving average.
Futures are pointing towards a mixed open and look like this: Dow (+20); S&P 500 (+1); Nasdaq (-7). Subscribers, check the Members Area for the trade updates.
Tags: Dow quotes, futures, option taring, S&P 500
Posted in Market Analysis, Market Commentary | Comments Off