9:00am (EST)
Picking a market top or market bottom is never easy because charts can only help so much. As an option trader, we must deal with time expiration so we have to be right within a certain time frame. We also have to factor in the global markets, cross-current tensions, interest rates, defaults, saber rattling, and other headline risks. However, when all of those factors work in your favor, you can have an incredible ride.
We were probably the only newsletter which called for the Dow to challenge 13,000 back in November. Now that we are here, picking the next trend is a little more difficult because there are a new set of circumstances. The market knows where it will be in 6 months. We don’t and neither do the pros but we have called this one right once the indexes broke out of their trading range 4 months ago.
Trading ranges can last weeks or months and we must now figure out what February and March will bring but the trend is still up and we have outlined support levels to watch on the way down. We have said we expect a pullback in February (which starts Wednesday) but last week’s Fed announcement could have been a wildcard for the bulls.
Sure, at some point, the market will get a pullback. The suit-and-ties and talking heads have been calling for one all month, but the trend is still up and there are a lot of support layers the bears will have to crack to change that. The market didn’t set new 52-week highs, yet, but the bulls came close. We also like to call the overshoot to the upside the “fluff” and it’s quite possible if the bulls continue with their momentum, the market will hit our upper-end targets before the pullback. Either way, we are enjoying the ride and we have our seatbelts fastened.
The Dow fell 74 points, or 0.6%, to settle at 12,660 on Friday. The blue-chips tested a low of 12,630 midday but held short-term support at 12,600 which had been prior resistance…
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007 and we are off to an incredible start for 2012.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter which is 17-1 for January, including 6 triple-digit winners! Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 23-0 on winning trades in 13 months, including 7-0 for January 2012.












MomentumOptionsTrading.com Weekly Wrap for 2/5/12
Sunday, February 5th, 2012
11:00pm (EST)
1. Market Summary
2. USEC (USU) – Time to Buy Back into Nuclear
3. MagicJack VocalTec (CALL) – Getting Bigger
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section)
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and went 16-0 for 2011. Even better, we went 7-0 in January and could go 5-0 in February to start 2012. Sign-up now and receive access instantly to our stock options trading recommendations!
Tags: stock options trading
Posted in Company Commentary, Market Commentary | Comments Off