Mid-Market Update: Futures were strong throughout the night and into this morning’s open as the bulls got off to a strong start. The upper levels of resistance were pushed on the opening pop, but the enthusiasm has faded heading into the second half of trading.
The Limit Order to close the first half of the RMBS August 14 calls at $1.30 has triggered.
Pre-Market Update: The bulls recovered most of Friday’s losses and reclaimed resistance during Monday’s snapback rally. The bears are still lingering, however, and fresh support is just a sneeze away. The action should heat up throughout the week, with some of the larger blue-chip companies and a number of marquee tech names scheduled to report earnings.
Buy to open the HILL September 7.50 calls (HILL150918C00007500, $0.45, up $0.15) at current levels.
Mid-Market Update: First-quarter earnings season kicks into second gear this week, and I mentioned that there would be a number of marquee names reporting their numbers. Here is a quick peak at the companies that will be reporting this week.
I have said for over a year now, the Nasdaq hasn’t come this far not to trade at record all-time highs. It is also important to remember the Russell 2000 just hit another all-time high last Wednesday. The lack of follow through on Friday was disappointing but one-day doesn’t make or break a trend.
Pre-Market Update: I often say that the bulls like to take the stairs higher, while the bears prefer to take the elevator down. Last week’s action stayed bullish throughout the week, with the bulls building solid gains through mid-April.
Mid-Market Update: The bulls are trying to put a cherry on top of a good week while keeping their momentum going into the heart of first-quarter earnings next week. April option-expiration day has been bullish over the past two decades, as the Dow has finished higher 75% of the time. However, those odds went out the window at this morning’s open.
Pre-Market Update: The market finished lower on Thursday, but the losses were kept in check as fresh support held. The action was relatively mild, and the indexes stayed in a tighter range, with the bulls showing some strength late in the day.
Mid-Market Update: Shares of Etsy (ETSY, $28.90, up $12.90) are zooming higher by over 80% today following the company’s IPO (initial public offering). The offering was priced at $16 and raised $267 million on 16.7 million shares sold.
Pre-Market Update: The bulls regained their footing on Wednesday, as all of the major averages finished higher. The gains have pushed the indexes to or above the tops of their trading ranges, and the all-times highs are in play once again.
Mid-Market Update: Shares of Bank of America (BAC, $15.64, down $0.18) are down fractionally following the release of its first-quarter earnings results this morning.
Pre-Market Update: The market was choppy on Tuesday as the broader indexes showed strength, while tech and the small-caps pulled back.
Mid-Market Update: Shares of McDonald’s (MCD, $97.45, up $0.01) are on the verge of a major move, as earnings are due to be released on April 22. This could be the catalyst that drives shares to fresh 52-week peaks north of $103 or pushes MCD lower towards $90.
Pre-Market Update: The bulls were cruising during the first half of trading on Monday, with the small-caps testing fresh all-time highs. The bears started making noise during the second half of trading and used a final-hour growl to get nearly a clean sweep. The broader market and tech failed to hold their gains, but the Russell avoided a loss, and first-quarter earnings season is now officially underway.
Mid-Market Update: First-quarter earnings season kicks off this week, and the financial stocks will garner much of the attention. While I covered the low expectations for earnings, overall, this sector should perform well given the recent bank stress test results.
Take profits and sell to close the first half the QQQ May 110 calls at current levels.
$1.30 Stop Limit triggered on the second half of the CMCSA May 60 calls.
Last Friday’s win was the Dow’s third-straight up Friday along with an up Thursday ahead of Good Friday. Up Monday/Friday closes usually signal money is moving into the market while down M/F closes signal cash is moving to the sidelines. Mixed Monday/ Friday closes can indicate trading ranges.
Pre-Market Update: The bulls showed strength last week, as the Dow started with a win on Monday. The VIX closed below 15 but was stretched for the second-straight session as the bottom of the trading ranges were tested. Wall Street sold on the nonfarm payrolls report from the previous Friday, but, when support held, it was a good sign.
Mid-Market Update: The bulls are trying to nail down their second-straight weekly win as they continue their assault on the top of the trading ranges. With earnings season starting next week, Wall Street has been betting on a pullback, as they believe corporate numbers will come in below expectations.
Buy to open the JBL May 24 calls (JBL150515C00024000, $0.60, up $0.05) at current levels.
Buy to open the IWM May 128 calls (IWM150515C00128000, $0.90, up $0.05) at current levels.
Buy to open the QQQ May 110 calls (QQQ150515C00110000, $0.57, down $0.03) at current levels.
Buy to open the RMBS May 14 calls (RMBS150515C00014000, $0.38, up $0.03) at current levels.
Buy to open the RMBS August 15 calls (RMBS150821C00015000, $0.53, down $0.02) at current levels.
Pre-Market Update: The bulls showed their resiliency as they moved towards the top of the trading ranges on Thursday, and tech showed continued strength to lead the way. The small-caps struggled and failed to join the party, but the VIX dropped below 13.50 to confirm possible higher highs.
Mid-Market Update: Gold broke through $1,220 on Monday but slipped $6.00 on Tuesday and $5.50 on Wednesday to close at $1,202.70. While a rally back to $1,220-$1,240 could still come, a close below $1,200 today would be a bearish development and might confirm that a temporary top is in.
Pre-Market Update: The bulls returned to their winning ways on Wednesday, as the market closed higher for the third time in the past four sessions. The final hour of trading was a little choppy, but the closes above resistance were bullish.
Mid-Market Update: Although first-quarter earnings season doesn’t officially start until next week, former Dow component Alcoa (AA, $13.64, up $0.21) will announce its numbers after the bell today. The call options have been active this week, as bullish traders are betting on a move past $14.
Pre-Market Update: The bulls failed at getting their third-straight win following Tuesday’s late-day slide in the market. The action in the small-caps was a bummer, as the index failed to hold fresh support. The talking heads took notice of the pullback into the close, but no major damage was done.
Buy to open the RMBS May 13 calls (RMBS150515C00013000, $0.58, up $0.21) at current levels.
Buy to open the RMBS August 15 calls (RMBS150821C00015000, $0.47, up $0.17) at current levels.
Buy TiVo (TIVO, $11.00, up $0.10) common stock at current levels.
Mid-Market Update: Trading shares of Sony can be gut-wrenching, as the stock tends to make large price moves. Shares are up over 45% this year and set a fresh 52-week high of $29.58 on Monday.
Pre-Market Update: The bears did some damage on Monday’s open as Wall Street rushed to sell stocks at the start of trading. They wanted to sell first and ask questions later, and it made for the perfect rebound. The bottoms of the trading ranges easily held, with the Dow and S&P 500 recovering their 50-day moving averages.
Mid-Market Update: The day after Easter is typically the second worst post-holiday session according to the history books, but Friday’s nonfarm payrolls made for a splashier headline and caused a bit of a pullback at the open this morning. The talking heads are trying to explain the rebound off of the lows and the reasons for a higher market as we make the turn into afternoon trading.
Buy to open the SNE May 31 calls (SNE150515C00031000, $0.70, up $0.35) at current levels.
The goal is to stay calm this week and to let the dust settle from the two-month trading range that has been keeping both the bulls and bears at bay. Once the all-clear signs are flashed, we will take action. The first quarter was incredibly busy and profitable, so the last thing we want to do is to give away profits.
Pre-Market Update: Although the market was closed on Friday, the nonfarm payrolls report was released, and the results had a negative 1% impact on futures. The report came in much worse than expected, as just 126,000 jobs were added versus expectations for 250,000. The unemployment rate stayed flat at 5.5%, but more Americans are out of work. These results will certainly reheat the Fed’s interest-rate debate, but bigger concerns lay ahead if the bottoms of the trading ranges fail to hold.
Mid-Market Update: Shares of Microsoft (MSFT, $40.14, down $0.58) are on the verge of cracking $40, which is a level I have been watching like a hawk for a few months. A drop below this level would likely get the 52-week low of $38.51 and possibly the mid-$30s in play.
Pre-Market Update: The first day of April was foolishly spent worrying about a major correction, as the talking heads were in overdrive throughout the session. The bears were growling, but the bulls’ planned traps held them back. While there is always the chance of lower lows, the game plan we had coming into this week is rounding out perfectly. Today’s action could provide the clues we are looking for regarding how the next week or two and the rest of April may play out.
The $12.45 Stop Limit has triggered on Flextronics (FLEX) common stock.
The $0.54 Stop Limit has triggered on the FLEX July 13 calls.
Mid-Market Update: This Van Halen classic came to my brain after seeing futures last night and early this morning. It may feel like the bulls are walking the plank again, but let’s put things in perspective.
I have additional trade updates this morning for our positions in FLEX. Shares traded to another 52-week high yesterday, but I’m raising our Stop Limits to protect profits.
Pre-Market Update: The bears got a slice of the quarterly pie following a late-day pullback on the Dow. The blue-chips failed at holding their first-quarter gains, as they stumbled at the March finish line. However, the other major indexes closed the quarter with gains following the late-day reshuffling.
Buy to open the RIGL June 5 calls (RIGL150619C00005000, $0.25, up $0.07) at current levels.
Mid-Market Update: Futures were showing another weird opening after midnight, with the S&P 500 slightly lower, but the Dow and Nasdaq 100 futures were showing another strong opening. Usually, the futures market ahead of the overseas markets opening sways one way or another. Given the weirdness of March, it can be blamed on a couple of things.
I have an update on one of our current trades following a brokerage downgrade late in yesterday’s session. Shares made a fresh 52-week high on Monday and, while I totally disagree with the downgrade, I want to protect our profits.
Pre-Market Update: Wall Street blinked on Monday’s open and tried to get back on the bulls’ bandwagon as the market trended higher throughout the day. It was a great start to the week, as the bulls won their second-straight session and their fourth Monday session in the past five.
Mid-Market Update: Futures were up slightly after midnight and got progressively stronger ahead of Wall Street’s open this morning. This was a good sign to see for the bulls, and there were also a number of merger and acquisition deals announced today that added to the bullishness.
Buy to open the FLEX May 13 calls (FLEX150515C00013000, $0.32, up $0.08) at current levels.
Trade Updates: We were filled in both of the QQQ trades on this morning’s open, as both options I recommended opened at $0.65. I have now set the parameters for each trade.
Buy to open the QQQ April 108 calls (QQQ150417C00108000, $0.45, up $0.05) with a limit order at $0.65.
Buy to open the QQQ May 110 calls (QQQ150515C00110000, $0.60, up $0.05) with a limit order at $0.80.
History shows that when Wall Street and Main Street have been this bearish in the past, the S&P 500 has risen 98% of the time. Even more mind-blowing is that the average gain is more than 25% on the index. This would equate to the S&P trading past 2,500, but don’t tell this to the suits and ties.
Pre-Market Update: The market ended mixed to start last week, as the Dow’s Monday winning streak ended at three with the slight pullback. Biotech stocks were weak after Wall Street said the sector was “overvalued,” and transport stocks pulled back as well, which was a warning that trouble could lie ahead.
Mid-Market Update: I spent all of last weekend and this week researching, plotting, digging and doing some chart painting. It is always important to have a game plan, especially as Wall Street has been on Spring Break. I’ve been doing the grind, and the good news is that the hard work should pay off.
Pre-Market Update: The bears won their fourth-straight session, but they showed why the bulls have been champion for three years running.
Mid-Market Update: I talked about the major moving averages in this morning’s Pre-Market Update and, as I was doing the chart work, I wanted to see where the uptrend lines were following Wednesday’s close.
Buy to open the X May 21 puts (X150515P00021000, $0.60, up $0.03) at current levels.
I wanted to send out this quick Trade Update to protect profits in a couple of our current positions.
Pre-Market Update: The bears won their third-straight session and did some damage on Wednesday, as the major moving averages are now back in play. Wall Street threw the baby out with the bathwater, and the “selloff” continued right into the closing bell.
There is always a headline — good or bad — that tries to explain why the market traded higher or lower on any given session. Today’s excuse was weakness in the biotech stocks, as they are getting squeezed to a pulp. On a technical level, the pullback is presenting either another great buying opportunity or the opportunity to short the market with put options going into April.
Mid-Market Update: March has been a tough month to trade so far, as the back-and-forth action has been a little frustrating. The Dow and S&P were already showing losses for the month coming into today’s session, and the test to their 50-day moving averages has exacerbated the pullback.
Pre-Market Update: The bears won their second-straight session following another backtest to support on Tuesday. I mentioned coming into the week that the back-end of March could be a little bearish, but the damage has been minimal. The first waves of support are holding, but further weakness could lead to additional selling pressure.
Mid-Market Update: Semiconductor stocks have been on a roll this year, and Wall Street is wondering if further gains are ahead. There are a number of ways to play the sector, as stocks are still at attractive entry levels despite the worry.
Buy to open the HILL June 5 calls (HILL150619C00005000, $0.65, up $0.05) at current levels.
Pre-Market Update: The bulls lost sight of the finish line on Monday as the bears edged them out for the win. The market slipped in the final minutes of trading, with heavy selling into the close. The losses were minimal, but it was a sloppy start to the week.
Mid-Market Update: Futures were up ahead of the opening of overseas markets and were showing a strong start to this morning’s trading on Wall Street. However, futures turned negative in between, and the market opened slightly lower to start today’s trading session.
$13.75 Stop Limit triggered on shares of JDS Uniphase (JDSU, $13.83, down $0.07).
While it is easy to say that the market rallied following the Fed’s more dovish stance, the real reason was based on the technicals, which is why it is so important to track them each and every week.
Pre-Market Update: The bulls gave good clues that higher highs might be in store after starting last week off with their third-straight Monday win. The push to prior resistance and the top of the trading ranges was a tease, however, as Tuesday’s pullback continued to worry Wall Street.
Mid-Market Update: Shares of Nike (NKE, $102.56, up $4.24) are trading at fresh 52-week and all-time peaks despite reporting a mixed quarter.
Pre-Market Update: A slight pullback on Thursday was almost a given following Wednesday’s short-covering rally. Although the broader market fell, the Nasdaq kissed 5,000 again and continues to show signs of a breakout to new all-time highs.
Buy Limelight Networks (LLNW, $3.91, up $0.05) at current levels.
Mid-Market Update: Apple (AAPL, $127.98, down $0.49) is now an official “blue-chip” stock, as the company joined the Dow this morning after replacing AT&T (T, $33.30, down $0.29) on the index.
Pre-Market Update: I normally wait until Friday afternoons to spin an office classic to wind down the week. However, I was singing mid-week following the statement from the Federal Reserve. Talk about a sweet spot — I was betting on yesterday’s rebound, but it caught Wall Street totally off-guard.
Buy to open the VEEV April 29 calls (VEEV150417C00029000, $0.60, down $0.11) at current levels.
Buy to open the CY April 16 calls (CY150417C00016000, $0.40, down $0.15) at current levels.
Buy to open the CY June 16 calls (CY150619C00016000, $0.75, down $0.15) at current levels.
Mid-Market Update: The waiting is almost over, as Wall Street continues to count down the minutes until the Fed’s latest policy statement. Regardless of the outcome, I will be glad once Janet Yellen speaks so some dust can settle.
Pre-Market Update: The broader market continued its see-saw action on Tuesday, but tech and the small-caps showed some green on St. Patty’s Day. The slick-talking pros keep saying that volatility is “off the charts,” given the daily triple-digit moves on the Dow, but they can’t see the forest for the trees.
Buy to open the GOGO April 23 calls (GOGO150417C00023000, $0.55, up $0.30) at current levels.
Mid-Market Update: FedEx (FDX, $178.05, up $0.73) will be announcing its numbers ahead of Wednesday’s open. It is one of the pieces of this week’s market puzzle that I’ve been anxious to hear, as its results will likely influence the Dow Jones Transportation Average ($TRAN, 9,088, down 8).
Pre-Market Update: The bulls got another Monday win following a strong session to start to the week. The surge past resistance kept the top of the trading ranges intact, but the VIX stayed above 15.
Mid-Market Update: Earnings will be light from now until the first week of April, which is when first-quarter earnings season starts. There are a few notable companies worth watching this week, however, and I could trade one of these names if there is a good risk/reward setup.
Buy to open the NVDA April 23 calls (NVDA150417C00023000, $0.65, up $0.09) at current levels.
Buy to open the NVDA May 24 calls (NVDA150515C00024000, $0.65, up $0.05) at current levels.
I have been warning that any closes above 17.50 could lead to 20-22 but the bulls held this level throughout all last week. If the bulls can get below 15 to start the week, it would be a nice signal higher highs are in store.
Pre-Market Update: The market rebounded last Monday, but the bulls failed to hold near-term resistance, and the VIX stayed above 15. The bears followed up by doing damage on Tuesday and Wednesday, but the action in the small-caps mid-week went unnoticed.
Mid-Market Update: It’s Friday the 13th, so I thought I would show you some scary charts and possible trade setups.
Pre-Market Update: The bulls made a great recovery on Thursday, as the market cleared resistance and stayed strong into the close. Volatility slipped a bit but remains elevated heading into the last trading day of the week.
Mid-Market Update: The second part of the bank stress tests were released after Wednesday’s close, and they didn’t go as smoothly as the first round. The 31 banks that are in focus passed last week’s tests with flying colors, but some weren’t as fortunate this time around.
Take profits and sell to close the first half of the KKD April 20 Puts at current levels.
Pre-Market Update: The bulls tried their best to recover resistance, but Wednesday’s slight rebound that lasted for much of the session faded into the close. The bears made their best attempt at cracking additional support levels, but a rebound in the financial stocks, along with the small-caps, held them back.
Mid-Market Update: One of the main clues I said to watch for this week was the action in the financial stocks. Although there has been a little bounce today, the sector is starting to break down like a rented mule following Tuesday’s pullback in the Financial Select SPDR (XLF, $23.97, up $0.15). The talking heads were more worried about the overall market pullback, but the break below the 50- and 100-day moving averages was bearish.
Pre-Market Update: The bears showed up to ruin the Nasdaq’s 15-year anniversary of its all-time high on Tuesday, and they cracked key levels of support in the process.
Buy to open Rigel Pharmaceuticals (RIGL) at current levels.
Take profits and sell to close Array BioPharma (ARRY) at current levels.
Mid-Market Update: Fourth-quarter earnings season is slowly winding down as we head into the middle of March. A “quiet” period usually ensues in late March and into the first week of April as companies prepare Wall Street for first-quarter earnings.
Pre-Market Update: The bulls rebounded from last Friday’s drubbing to get a Monday win, but the bears made a little noise as they pressured tech and kept volatility elevated.
Mid-Market Update: One of the first things the bulls need to do this week is get a Monday win. That goal is still up in the air, as trading has been choppy throughout today’s session.
Take profits and sell to close BlackBerry (BBRY) at current levels.
The unemployment rate dropped to 5.5%, and the headlines immediately started asking when the Fed would hike rates. Although a quarter-point rate hike is now nearly a given by June, traders took profits, and the market had one of its worst days of the year. The damage gave the bears their first weekly win in five weeks and created the buying opportunity that the suits and ties have been waiting for.
Pre-Market Update: Last week got off to a strong start as the market continued its record rally from February. The Nasdaq recovered and closed above 5,000 on Monday for the first time in 15 years. However, the celebration was short-lived, as the index spent a total of just 45 minutes above this level.
$1.35 Stop Limit triggered on the second half of the GOGO May 20 calls.
Mid-Market Update: With all the hype focused on the “then and now” of Nasdaq 5,000, I thought it would be interesting to bring up and track one famous stock that went public during the Nasdaq’s heyday. I will talk more about the ridiculousness of this argument or debate in next Monday’s Pre-Market Update, but one company that has survived the “dot.com” bubble is Krispy Kreme Doughnuts (KKD, $21.35, down $0.30).
I have three Trade Updates for the Momentum Stocks Weekly Portfolio.
