August was a nasty month for the market, and the first week of September wasn’t much better. The bears won last month, as the major indices registered losses of 6%-7%. Last week’s losses averaged upwards of 3% across the board.
Pre-Market Update: August was a nasty month for the market, and the first week of September wasn’t much better. The bears won last month, as the major indices registered losses of 6%-7%. Last week’s losses averaged upwards of 3% across the board.
Mid-Market Update: I mentioned in yesterday’s Mid-Market Update that I would be profiling a number of directional and potential strangle option trades, so here is one I’m watching that I might take action on next week.
Pre-Market Update: The bulls did their best to get a clean sweep on Thursday and, while the broader market finished higher, tech and the small-caps gave back their gains. The technical clues were mixed as well, as both are showing that a breakout or breakdown will likely ensue in the coming weeks.
Mid-Market Update: Given the power of strangle option trades, and with the current volatility that may or may not settle down, I have been profiling a number of these type of trades in recent weeks.
The bulls showed some moxie on Wednesday and got Wall Street excited again following a final-hour rally to fresh session highs. The impressive rally is still suspicious, but crucial pivot points are in play, and the rest of the week should end with either a bang or a bust.
Pre-Market Update: The bulls showed some moxie on Wednesday and got Wall Street excited again following a final-hour rally to fresh session highs. The impressive rally is still suspicious, but crucial pivot points are in play, and the rest of the week should end with either a bang or a bust.
Mid-Market Update: Futures were up ahead of this morning’s open as overseas markets rebounded somewhat, setting the stage for the bulls here in the United States. While the first-half bounce was a given, today’s close will be more important.
Pre-Market Update: The bears are feeling confident again as China’s economic woes worsen, while oil’s 8% drop to $45/barrel continues to whipsaw flip-flopping traders. The indexes finished below the first waves of support yesterday, and a break below last week’s lows could cause another round of panic selling.
Mid-Market Update: The nasty numbers for the month of August favored the bears, as the major averages sank 6%-7% on average, and September isn’t starting off much better.
Use a limit order and buy to open the MYL October 42.50 puts (MYL151016P00042500, $0.70, up $0.10) for a maximum price of $0.90.
Use a limit order to buy to open the KKD November 16 puts (KKD151120P00016000, $0.90, up $0.05) for a maximum price of $1.05.
Pre-Market Update: The bears were aggressive at Monday’s open, but the bulls fought back before losing the first out of five sessions this week. The small-caps showed strength, but they slipped below key support by the closing bell.
Mid-Market Update: The bears are trying to end the month with a bang, and the party started Sunday night while futures were showing a nasty open. However, the bulls held steady during the opening onslaught and managed to briefly push the small-caps into positive territory heading into afternoon trading.
Pre-Market Update: Panic selling hit Wall Street at the start of last week, as the major averages tested their October 2014 lows. The Dow breached its October low before holding crucial support into Monday’s close, while the S&P 500, Nasdaq and Russell 2000 all held their respective October 2014 lows.
The S&P 500 was up 18 points for the week. I talked about the index slipping into a death cross last Thursday morning. By Friday’s close, it was official as the 50-day moving average settled a point below its 200-day moving average. It might be hard to correct this setup as both moving averages are curling lower with the 50-day moving average picking up steam.
Mid-Market Update: It is too early to tell if the V-shaped recovery off of Monday’s lows will continue into next week or if the current rally is a bear trap, but today’s action is slightly bullish.
Pre-Market Update: The market rebounded for the second-straight session following comments from one Federal Reserve official. New York Fed President William Dudley excited Wall Street after he said that the odds for a September rate increase seemed less compelling now than a few weeks ago. He added that the threat posed to the U.S. economy by the recent market turmoil was a concern.
Mid-Market Update: Shares of Smith & Wesson Holding Corp. (SWHC, $16.21, up $0.26) will be on the move in extended trading today following the company’s earnings release after the close.
The bulls showed Wall Street why they can’t be given up on following Wednesday’s strong gains. Instead of folding in the final hour of trading, the market got stronger and enjoyed its best day in four years.
Pre-Market Update: The bulls showed Wall Street why they can’t be given up on following Wednesday’s strong gains. Instead of folding in the final hour of trading, the market got stronger and enjoyed its best day in four years.
Mid-Market Update: The bulls are trying to clear resistance this afternoon following another strong open, but, again, the big concern is if the gains will hold into the close. Tuesday’s pullback off of the highs and the nasty finish served as additional reminders that we are still in a very fragile market environment.
Pre-Market Update: Wall Street was thanking China for cutting its interest rates again for the fifth time since November, as the talking heads stated this was the reason that the market was trading higher for much of Tuesday’s session.
Mid-Market Update: Futures were showing a huge gap-up this morning following Monday’s carnage, but there were concerns about whether or not the gains would hold. The first 30 minutes of trading were important, as the bulls showed strength and some follow-through. Although it’s still early in the day and there is another half of trading to go, the action looks bullish so far.
Pre-Market Update: Monday’s action was a test of will and nerves, as bullish and bearish traders took positions in a very volatile market. It is too early to say which side will be right, but the action has been both breathtaking and exciting. The wild price swings will likely be here to stay all week, so it is important that we remain patient until the dust settles.
Mid-Market Update: Futures were showing panic-selling declines on the open this morning, as investors from around the globe headed for the exits. True to form, the major indexes plummeted at the start of trading but have rebounded this afternoon as bullish investors tried to pick a bottom and look for good deals.
I have been one of the bulls biggest cheerleaders for the past three years and it’s why I haven’t bailed on them this year. However, I love making money with the bears, as my track record shows, so do not panic if the next few months get even crazier.
Pre-Market Update: The bulls got their second-straight Monday win to start last week, despite another attempt by the bears to derail an end-of-summer rally.
Mid-Market Update: I often say that the bulls like to take the stairs higher, while the bears prefer to take the elevator lower. As the market enters correction territory, this week’s elevator drops show how fast and furious the bears can be.
Pre-Market Update: The bears enjoyed their best session of the year on Thursday, as the market’s losses left Wall Street speechless. The bulls are looking to end the three-day losing streak, and they have their sights set on prior support. However, another loss today will likely lead to continued weakness into next week.
Mid-Market Update: Futures were pointing to a nasty open and a test to the August lows this morning, and the big concern was whether or not support would hold. So far it has, and today’s close will be one of the more important tells in recent weeks.
The market remained rocky on Wednesday as Wall Street fretted over the latest Fed minutes. Although the chances are good that a rate hike will come in September, according to the slick-talking pros, the dovish minutes offered hope that the zombies might wait until later in the year before making their move.
Pre-Market Update: The market remained rocky on Wednesday as Wall Street fretted over the latest Fed minutes. Although the chances are good that a rate hike will come in September, according to the slick-talking pros, the dovish minutes offered hope that the zombies might wait until later in the year before making their move.
Buy to open the IWM September 123 calls (IWM150918C00123000, $0.78, down $0.35) at current levels.
Buy to open the KKD November 17 puts (KKD151120P00017000, $0.95, up $0.10) at current levels.
Mid-Market Update: Shares of Dot Hill Systems (HILL, $9.68, up $4.50) are surging 87% today following the news that the company will be acquired by Seagate Technology (STX, $50.50, down $1.55).
The Stop Limit of $1.00 triggered on the second half of the KBH October 16 calls.
Take profits and sell to close Dot Hill Systems (HILL) common stock at current levels.
Set a Limit Order to sell to close HILL common stock at $9.75.
Pre-Market Update: The bears ended their two-session slide following a frustrating start by the bulls on Tuesday. Although there was a slight burst into positive territory, Tech and the small-caps were weak, and the VIX finished higher for the second-straight day.
Mid-Market Update: It was crucial that fresh support held on this morning’s backtest, as futures were showing some early-morning weakness. Although the indexes are still in the red, I’m looking for the recent market pattern of afternoon strength to play out again today.
Pre-Market Update: Monday’s action was picture-perfect, as the early morning weakness flushed out bullish traders as the market turned bearish. I mentioned that a second-half rebound and a higher Monday close on the Dow would be bullish clues for a continued rally. The market obliged, but trading is still treacherous.
Take profits and sell to close the first half of the KBH October 16 calls at current levels.
Mid-Market Update: Futures were slightly lower after midnight and going into the opening of markets overseas, indicating that there would be a rather smooth transition here in the United States. However, an hour ahead of the open, weak economic news put the bulls behind the eight ball.
Buy to open the BAC October 18 calls (BAC151016C00018000, $0.45, down $0.03) at current levels.
Buy to open Rave Restaurant Group (RAVE) common stock at current levels.
Wall Street was thrown a curveball last week following China’s decision to devalue its currency. While it was a surprise to the suits-and-ties, it shouldn’t have been when it comes to the country’s politics.
Pre-Market Update: Wall Street was thrown a curveball last week following China’s decision to devalue its currency. While it was a surprise to the suits-and-ties, it shouldn’t have been when it comes to the country’s politics.
Buy to open the IWM September 123 WEEKLY calls (IWM150904C00123000, $0.52, up $0.07) at current levels.
Mid-Market Update: I profiled El Pollo Loco Holdings (LOCO, $14.76, down $3.60) in the Aug. 12 Mid-Market Update, and shares are down 20% today following a mixed earnings report that was released after Thursday’s close. The company beat expectations by a penny, but revenue was light, and the company lowered guidance for the current quarter once again.
Pre-Market Update: The bulls made a run at resistance on Thursday following a slow and sluggish start to the day. Trading was tight and choppy throughout the session, but a late-day fade gave the bears the overall win.
Mid-Market Update: Shares of J. C. Penney (JCP, $8.12, down $0.15) will be in focus on Friday morning, as the company is expected to report earnings ahead of the open. Wall Street is expecting a loss of $0.48 a share on revenue of $2.86 billion.
Fear swept through Wall Street on Wednesday as the bears made their most significant move of the year. The technical damage caused from yesterday’s pullback was severe, but the bounce off of the lows might be telling another story.
Pre-Market Update: Fear swept through Wall Street on Wednesday as the bears made their most significant move of the year. The technical damage caused from yesterday’s pullback was severe, but the bounce off of the lows might be telling another story.
Mid-Market Update: Translated from Spanish, “loco” means crazy, or mad, and it also happens to be the ticker symbol for El Pollo Loco Holdings (LOCO, $17.72, down $0.21). The company announces earnings after Thursday’s close and, on a technical level, one would have to be crazy to buy the stock.
Pre-Market Update: The bulls ran into trouble on Tuesday following China’s decision to devalue its currency. The losses wiped out Monday’s gains as selling pressure picked up during the second half of trading. The technical damage was severe, and a “death cross” officially formed on the Dow Jones, with the 50-day moving average falling below the 200-day moving average.
Mid-Market Update: Futures were pointing towards a nasty open this morning following the news that China had devalued its currency, the yuan, by 2%. This sparked a rally in the dollar that hurt multinational companies and raised concerns over a new round of currency wars.
Pre-Market Update: The bulls snapped two streaks to start the week as they recovered the first layers of resistance. Monday’s market win not only snapped a seven-session losing streak for the Dow, but it also gave the blue-chips their first Monday win in three weeks.
The Stop Limit of $0.65 triggered on the KKD November 16 puts.
Buy to open the JPM September 70 calls (JPM150918C00070000, $0.80, up $0.08) at current levels.
Mid-Market Update: The bulls got a lift this morning after overseas markets trended higher on optimism that Greece may be moving closer to securing a deal for its third financial bailout. Talks with creditors were held over the weekend, and an agreement could be reached by tomorrow.
The VIX gave the best clue of all that there would be a flush lower in the market following Wednesday’s test to 10.88. I have said all summer that any closes below 11.50 would confirm strong bullish momentum, and that there could be a possible push to single digits coming into play.
Pre-Market Update: The bulls had trouble out the gate at the start of last week, as the Dow fell for the second-straight Monday. The VIX closed above 12.50, and Apple (AAPL, $115.52, up $0.39) dropped below $120 and its 200-day moving average for the first time in two years. All three of these were great clues that the rest of the week would be wild.
Mid-Market Update: Today’s nonfarm payrolls report showed that 215,000 jobs were added in July and that the unemployment rate held steady at 5.3%. This matched Wall Street’s expectations and set in motion more talk of an interest-rate hike in September.
Pre-Market Update: Wednesday’s action in the S&P 500 Volatility Index ($VIX, 13.96, up 1.45) gave me a funny, but good, feeling that we would be locking in profits on some of our current trades as we headed into Thursday’s session. Although the market showed some strength on the open, the bears took over and pushed the second layers of support shortly afterwards.
Buy to open the KKD November 16 puts (KKD151120P00016000, $0.60, up $0.15) at current levels.
Mid-Market Update: Shares of Keurig Green Mountain (GMCR, $53.10, down $21.88) are getting roasted today following a dismal earnings report. The company reported a profit of $0.73 a share on revenue of $969.5 million. Wall Street was looking for $0.79 a share on revenue of $1.04 billion.
The bulls nearly got a clean sweep on Wednesday, but the blue-chips struggled to join the parade. For the most part, the bulls ended their three-session skid, but deeper concerns remain, as a number of high-profile companies continue to miss revenue expectations.
Pre-Market Update: The bulls nearly got a clean sweep on Wednesday, but the blue-chips struggled to join the parade. For the most part, the bulls ended their three-session skid, but deeper concerns remain, as a number of high-profile companies continue to miss revenue expectations.
Mid-Market Update: Wall Street was giddy on Walt Disney (DIS, $111.05, down $10.64) ahead of its earnings announcement Tuesday afternoon, as most analysts were banking on a solid quarter and continued momentum. The headline numbers read as if Disney topped expectations, but the devils in the details were the revenue miss and concern over cord-cutting.
Pre-Market Update: The bears recorded their third-straight win on Tuesday following a tight and choppy session. The bulls showed a little life after testing resistance, but the late-day fade opened fresh wounds.
Mid-Market Update: Shares of SodaStream International (SODA, $17.31, down $0.03) could be setting up for an explosive move following Wednesday’s earnings announcement. Shares are near the 52-week low of $16.80 that was set in March, and they have been prone to huge price swings following earnings announcements in the past.
Pre-Market Update: The bulls were looking to get their third-straight win on a choppy Thursday and nearly got the hat trick before the blue-chips slipped into the close. The bulls are having a good July, as three of the four major indexes are higher as we go into the last trading session of the month. The small-caps are still struggling, however, and will likely finish the month lower.
Buy to open the SPY August 205 puts (SPY150821P00205000, $0.90, up $0.17) at current levels.
Mid-Market Update: Although the majority of the bigger, more well-known companies have already reported their quarterly earnings, there are a number of iconic brands that will be confessing their numbers to Wall Street this week. One such company is luxury apparel-maker Coach (COH, $30.08, down $1.12), which will announce its fourth-quarter results before Tuesday’s open.
The bulls turned in a solid month for July despite elevated volatility as most of the major indices finished higher. The small-caps were weak and remain a concern heading into August, which is historically a poor month for the market, as well.
Pre-Market Update: The market continued its late-July pullback last week, and the indices finished near multi-month lows. However, the five-session slide ended on Tuesday, as the bulls rebounded to push resistance and prior support.
Mid-Market Update: Shares of United States Steel (X, $19.64, down $0.45) cleared $20 this week following a drop to Monday’s 52-week low of $15.68. Naturally, after making a 338% return earlier this month using put options on the drop north of $22 to below $20, the stock has stayed on my Watch List.
Pre-Market Update: The bulls were looking to get their third-straight win on a choppy Thursday and nearly got the hat trick before the blue-chips slipped into the close. The bulls are having a good July, as three of the four major indexes are higher as we go into the last trading session of the month. The small-caps are still struggling, however, and will likely finish the month lower.
Mid-Market Update: The market was looking for a better-than-expected gross domestic product (GDP) number this morning ahead of the open. Although GDP came in at a 2.3% annual rate from April to June, growth was slightly below expectations.
The bulls posted their second-straight win on Wednesday and showed some follow-through from Tuesday’s takeoff. The bears tried to hold the second layers of resistance, but they failed for the most part, with the VIX closing right at the 12.50 level.
Pre-Market Update: The bulls posted their second-straight win on Wednesday and showed some follow-through from Tuesday’s takeoff. The bears tried to hold the second layers of resistance, but they failed for the most part, with the VIX closing right at the 12.50 level.
Mid-Market Update: Shares of Citrix Systems (CTXS, $75.77, up $6.14) are surging 9% today following the company’s better-than-expected earnings report and several other developments. The company reported a profit of $1.00 a share on revenue just shy of $797 million following Tuesday’s close. Wall Street was looking for $0.89 a share on revenue of $791 million.
Pre-Market Update: The market rebounded on Tuesday to snap a five-session slide, as momentum increased during the second half of trading. Also, while one day doesn’t make a trend, the VIX collapsed back below 15 yesterday. The bulls still face numerous headwinds this week, but another strong close today could lead to additional short covering.
Buy Rapid7 (RPD) common stock at current levels.
Buy OHR Pharmaceutical (OHRP) common stock at current levels.
Buy to open the GLD September 98 puts (GLD150918P00098000, $0.82, down $0.11) at current levels.
Mid-Market Update: After five days of being on the mat, the bulls came out swinging this morning. The opening pop saw the major indices trade higher to test the fresh resistance levels that had served as prior support, although momentum has been sluggish. However, there are still several hours of trading to go, and the close will be important to watch as well.
Pre-Market Update: The bears continued their attack on the lower levels of support on Monday, as the market slid for the fifth-straight session. Although the headlines blamed China, oil and the dollar for the decline, the technical picture had already given us the clues that more damage was coming.
Mid-Market Update: Futures got progressively worse going into this morning’s open following the 8% drubbing of China’s stock market overnight. The Shanghai Composite Index closed at 3,725 and had its worst daily percentage loss since February of 2007. This exerted pressure on other global markets and signaled a continued drop for markets in the United States.
$1.40 Limit Order triggered on the first half of the IBM July 24th $180 weekly calls.
I stayed aggressive on the run to fresh highs this month, but I have been warning that a trading range or possible pullback could develop afterwards. This doesn’t mean that higher highs aren’t in store this week or next month, but the technical indicators I follow are giving mixed-to-bearish signals at the moment.
Pre-Market Update: The bulls got off to a good start last week, as the market edged higher to push resistance and fresh all-time highs. However, the small-caps acted weak, and trading was tight ahead of a busy week for earnings.
Buy to open the QQQ August 7th $110 Weekly puts (QQQ150807P00110000, $0.72, up $0.22) at current levels.
Mid-Market Update: It has been a busy week for earnings, and next week promises to be just as exciting. It’s obvious that Wall Street has been rewarding companies that have done well with earnings beats and raised guidance. Companies that have missed expectations have seen their stock prices fall by double-digit percentage points.
Pre-Market Update: The bears did a little damage on Thursday, as they cracked the first layers of support following another round of mixed earnings results. The heavy flow of announcements continued after the closing bell, with Amazon.com (AMZN, $482.18, down $6.09) zooming 17% on better-than-expected numbers. This sets up the possibility of a continued trading range if the bulls rebound today.
The Stop Limit of $2.60 triggered on Chanticleer Holdings (HOTR).
Mid-Market Update: Futures were up after midnight and showing a higher open on Wall Street this morning. However, the pre-market action turned south after a number of blue-chip companies reported weak-to-mixed earnings.
The market finished mixed on Wednesday, with support and resistance holding on both sides. The possibility of a continued trading range with upside potential for the bulls is still high, but further weakness could tilt those odds in favor of the bears.
Pre-Market Update: The market finished mixed on Wednesday, with support and resistance holding on both sides. The possibility of a continued trading range with upside potential for the bulls is still high, but further weakness could tilt those odds in favor of the bears.
Mid-Market Update: Shares of Apple (AAPL, $124.15, down $6.60) have traded to a low of $121.99 today following the company’s earnings announcement after yesterday’s closing bell. The 200-day moving average is at $119.
Buy Chanticleer Holdings (HOTR) common stock at current levels.
