Mid-Market Update: Futures were showing a significantly lower start after midnight following the Greece elections, but they improved dramatically ahead of this morning’s open on Wall Street. While there has been some weakness, the indexes are pushing positive territory as traders get a feel for the possible trend this week.
Buy to open the OPK March 11 calls (OPK150320C00011000, $0.65, up $0.10) at current levels.
Wall Street was on standby throughout last week and ahead of the European Central Bank’s (ECB) major stimulus policy announcement. The bulls showed strength into last Thursday’s news, and much of the herd was betting on a pullback.
Pre-Market Update: Wall Street was on standby throughout last week and ahead of the European Central Bank’s (ECB) major stimulus policy announcement. The bulls showed strength into last Thursday’s news, and much of the herd was betting on a pullback.
Mid-Market Update: Shares of Starbucks (SBUX, $88.27, up $5.53) are in blue-sky territory following Thursday’s earnings update after the close. The surface numbers weren’t impressive, but Wall Street is excited and energized on the run to fresh all-time highs.
Limit Order triggered on the first half of the SBUX February 85 calls (SBUX150220C00085000, $3.75, up $2.60).
Pre-Market Update: For the suit-and-ties that jumped off of the bull bandwagon, welcome back. John Sebastian missed you, and I couldn’t resist playing this morning’s theme song to start my trading day.
Mid-Market Update: Although Christmas was nearly a month ago, it certainly felt like Christmas Eve last night as I stayed up way past midnight to see how the futures market was trading. These are the last numbers I usually review before I hit the rack and the first I look at when I wake up. They are not a given on how the markets will trade for the day, but futures can give you a pulse on the action.
Pre-Market Update: The bulls extended their win streak to three-straight for the first time in 2015 despite another choppy session. The small-caps failed to participate in the upswing, but the other major indexes came within a stone’s throw of clearing resistance.
Mid-Market Update: The bears made an opening push to support on this morning’s open, but the bulls quickly recovered and are trying to maintain a two-session win streak.
Pre-Market Update: The bulls started the week off on a good note after battling back on Tuesday and maintaining their momentum from Friday. The small-caps lacked as the Russell pulled back, but volatility fell a notch, and the VIX closed below 20.
Buy to open the SBUX February 85 calls (SBUX150220C00085000, $0.75, up $0.05) at current levels.
Mid-Market Update: Futures were showing a nice start to today’s session, as the bulls were looking to keep their momentum from Friday. Following an opening test to resistance, the bears held and are returning the favor.
The bears held momentum throughout the week, but the bulls snapped a five-session slide on Friday. The action into the close was bullish, as the indexes reclaimed resistance, but volatility is still elevated.
Pre-Market Update: The bears held momentum throughout the week, but the bulls snapped a five-session slide on Friday. The action into the close was bullish, as the indexes reclaimed resistance, but volatility is still elevated.
Mid-Market Update: The bears made another run at the January lows this morning and were on the verge of pushing the December lows an hour into trading. Down, but not out, the bulls are now showing why it has been hard to bet against them, as they have rebounded off of the lows once again.
Pre-Market Update: The bears won their fifth-straight session on Thursday as they continued to push the bottoms of the trading ranges. The January lows held for a second-straight session, and today’s action will likely determine next week’s trend.
Mid-Market Update: The financial sector sends its biggest hitter to the plate on Friday morning, with Goldman Sachs Group (GS) stepping into the batter’s box. Given the current market environment, “Golden Slacks” will likely hit it out of the park on earnings or strike out looking.
Pre-Market Update: The bears pushed fresh lows for the year on Wednesday and are now eyeing the December bottom. A break below these levels could be dangerous, as it would also get the 10-year uptrend lines in play. The bulls have a little wiggle room and will need to show some strength over the next two sessions to regain momentum.
Mid-Market Update: I mentioned that this week would be all about the financial stocks, as a number of marquee players would be announcing earnings. JPMorgan Chase (JPM, $55.82, down $3.03) and Wells Fargo (WFC, $50.75, down $1.10) were the first two companies from the sector to confess their numbers to Wall Street.
Pre-Market Update: Turnaround Tuesday turned treacherous following Wall Street’s lunch break, as the market took a nosedive off of its highs. The bears pushed support, but the bulls’ test to resistance and the rebound off of the lows remain encouraging.
$1.25 Stop Limit triggered on the second half of the MRVL February 15 calls (MRVL150220C00015000, $1.20, down $0.25).
Mid-Market Update: The bulls and bears have been exchanging two-day blows over the past week, which have produced a volatile trading range. It appears as though that trend is continuing, as the bulls are bouncing back and pushing resistance. It remains to be seen if today’s gains will hold into the close and whether tomorrow will show some follow-through, but, for now, the action is bullish.
Pre-Market Update: The triple-digit price swings continued to start the week, as the market pulled back ahead of the start of fourth-quarter earnings season.
$0.40 Stop Limit triggered on the FLEX February 11 calls.
Sell to close the FLEX April 11 calls at current levels.
Mid-Market Update: Alcoa (AA, $16.14, up $0.03), the forgotten Dow blue-chip, has doubled since getting booted from the index for its low share price and other concerns. I have tracked the company’s earnings for years, as they represent the “official” start of each earnings season.
The market ended the week on a somber note and with heavy hearts, as terrorist attacks in Paris escalated. The jobs numbers pleased Wall Street, but violence around the world continues to be a concern. The start of fourth-quarter earnings season and the continued debate over interest rates starts this week.
Pre-Market Update: The bears got off to a good start for 2015 as the market continued its pullback to begin the week. Oil dropped below $50 and the trickle-down effect remained a concern for Wall Street, despite lower gas prices for the foreseeable future.
Mid-Market Update: The bulls and bears have a few hours of trading to go as they battle for the weekly win into the close. With two decisive victories this week by both sides, it was nearly a given that market uncertainty would last into the weekend. However, next week will be a new fight, and the action is setting somebody up for a knockout.
My favorite stock for 2015 officially has a name change, and shares have been like butter this week — on a roll. The bullish chart work I published in Monday’s Issue clearly showed a “symmetrical triangle” pattern had formed.
Pre-Market Update: The talking heads and slick-talking pros appear to be shocked at the current V-shaped recovery, and the problem is that they haven’t done the chart work. Most of them “report” the news and follow the crowd, so they are not in the trenches on a daily basis like you and I. If so, they would have seen that the charts (and the VIX) were showing a powerful rebound if support held.
Buy to open the JDSU March 14 calls (JDSU150320C00014000, $0.78, up $0.09) at current levels.
Buy to open the HLT April 29 calls (HLT150417C00029000, $0.40, up $0.10) at current levels.
Buy to open the VEEV February 31 calls (VEEV150220C00031000, $0.75, up $0.42) at current levels.
Mid-Market Update: I mentioned that a rapid rebound could come following the pullback at the start of the year as Wall Street stayed on the sidelines. The bulls have recovered much of 2015’s early losses and are now challenging the next waves of resistance.
The limit order to sell half of the MRVL February 15 calls at $1.35 has triggered.
Pre-Market Update: The bulls were holding impressive gains heading into the second half of trading and the release of the Fed minutes. I mentioned that Wednesday’s close would be important, and the Fed’s statements didn’t rock the bullish boat. The market pushed resistance, but the bears still deserve respect. The bulls will need to follow through in today’s session to keep their momentum.
Mid-Market Update: I mentioned that Tuesday’s action felt like a capitulation moment, and today’s rebound has soothed some of Wall Street’s worries for the time being.
Pre-Market Update: The bears are getting greedy, as they stretched their winning streak to five-straight sessions and pushed another layer of support during Tuesday’s pullback.
Mid-Market Update: Oil and energy stocks have been hammered in recent months and, with oil dropping below $50 a barrel to start the week, investors have been clamoring to jump into the quicksand as they look for a “bargain.” However, they might need to have some rope to hold on to in case these stocks continue to sink.
Pre-Market Update: The bears continued their assault on Wall Street and did some serious damage during Monday’s pullback. Worries over the price of oil ignited fears of a continued decline, as black gold dipped below $50 for the first time in over five years.
Buy to open the PM March 75 puts (PM150320P00075000, $0.93, up $0.10)
Mid-Market Update: Wall Street is feeling like a disappointed kid at Christmas after not getting the gift it wanted from Santa. Although there is still another half of trading to go, it appears that there will be no Santa Claus rally for the first time since 2008.
With a full week ahead and Wall Street back from their two-week hiatus, traders will be looking for an edge. However, most suit-and-ties will likely remain cautious as they will be waiting for a possible continued pullback.
Pre-Market Update: The market was volatile on Friday — the first trading day of 2015 — after finishing 2014 with solid gains. The S&P 500 Volatility Index ($VIX, 17.79, down 1.41) closed above 15 to start last week, which was perhaps an omen that support would get stretched.
Sell to open the BAC January 18 calls (BAC150117C00018000, $0.30, down $0.05) at current levels.
Sell to open the JDSU February 15 calls (JDSU150220C00015000, $0.30, down $0.05) at current levels.
Sell to open the BRCD February 12 calls (BRCD150220C00012000, $0.40, down $0.10) at current levels.
Sell to open the T February 35 calls (T150220C00035000, $0.28, up $0.05) at current levels.
Mid-Market Update: The first trading day of the year has favored the bulls in recent years, but, over the past 25 years, the small-caps have usually pulled back. The Russell 2000 fell 1% on its first day of trading last year and, despite a nice pop at the open, the small-cap index is mimicking that performance today.
Pre-Market Update: Volatility was elevated heading into the second half of trading on Wednesday, which was a good indication that the bears might show up. The bulls did manage to push another record high with the small-caps, but the late-day drubbing has near-term support in play.
Mid-Market Update: The bulls are bucking the odds and are trying to end 2014 on a high note following Tuesday’s pullback. I mentioned that the last trading day of the year has been bearish over the past decade, but that the past two have been bullish.
Pre-Market Update: The bears made another appearance on Tuesday and stole the bulls’ lunch to get a clean sweep on the major indexes. Near-term support held, but the fading momentum needs to be watched for further signs of a possible decline.
Trade Alerts: $1.40 Stop Limit triggered on the second half of the IWM January 121 calls.
Mid-Market Update: I have been talking about how the financial stocks need to show continued strength to lead the market higher in recent weeks. After going hunting for an option trade, I want to expand on those thoughts.
Pre-Market Update: The bulls failed to get a clean sweep on Monday, as the bears won the blue-chip battle. Volatility was also back in play heading into the end of the year. Overall, however, it was a bullish session and fresh records highs were still pushed.
Mid-Market Update: Futures were slightly higher last night as I was wrapping up my weekend homework and remained that way ahead of the opening of overseas markets. However, Greece’s inability to elect a president following its third round of elections had futures lower heading into this morning’s open here in the United States.
Wall Street closed shop early last week for the holidays, and most traders took extended vacations on Friday instead of fighting with the bulls.
Pre-Market Update: Wall Street closed shop early last week for the holidays, and most traders took extended vacations on Friday instead of fighting with the bulls.
Buy to open the T February 35 calls (T150220C00035000, $0.35, up $0.05)
Pre-Market Update: The Christmas Eve rally on Wednesday produced another round of fresh highs, but the gains faded into the close of the holiday-shortened session. Despite the pullback, the bulls held positive territory for the most part.
Mid-Market Update: The Dow has finished higher in five of the past six years, and the odds have favored the bulls as the blue-chips continue to trip new highs.
Pre-Market Update: The bulls stretched their winning streak to five-straight sessions on Tuesday, but Tech was weak and biotech stocks weighed heavily on the Nasdaq. The broader market and small-caps showed strength, and volatility stayed subdued, both of which were good signs.
Mid-Market Update: Futures stayed steady throughout the night and were higher heading into this morning’s open. This, along with the follow-through on Monday, suggested higher highs today despite a mixed bag of economic news.
Pre-Market Update: The bulls ended a three-session Monday slide, as the blue-chips pushed all-time high territory again. The S&P recorded its 50th all-time closing high of the year, but the bigger story was the small-caps.
Mid-Market Update: Futures were slightly higher ahead of the European market opening and stayed positive heading into this morning’s open here in the United States. This was a slightly bullish sign, as the bulls need a Monday win to keep their momentum and end a three-session Monday slide for the Dow.
The small-caps gave one of the best clues that a market bottom might form quickly following a back test to 1,140 to start the week, with only a one-point loss on Tuesday’s overall market slide.
Pre-Market Update: The week of December option expiration turned out to be one of the most volatile and exciting of the year. The bulls and bears were tossing triple-digit blows on the major indexes with dizzying 2%-3% intraday swings.
Trade Alerts: Buy to open the BSX February 14 calls (BSX150220C00014000, $0.45, flat).
Buy to open the JNPR January 23 calls (JNPR150117C00023000, $0.36, up $0.09).
Buy to open the JNPR April 24 calls (JNPR150417C00024000, $0.81, up $0.13).
Mid-Market Update: Futures were showing a strong open after midnight and ahead of the start of trading in overseas markets. This was a very bullish sign, and it signaled that the “chase” was on as Wall Street starts to play catch-up. Despite the bullish start, the action is relatively flat as trading winds down for the week.
Buy Bank of America (BAC, $17.63, up $0.10).
Buy JDS Uniphase (JDSU, $14.07, up $0.06).
Pre-Market Update: The bulls had jaws dropping on Wall Street on Thursday, as the V-shaped recovery has caught traders off-guard, just like I was hoping for. Even better, the market rally got stronger as oil tanked below double-nickels ($55).
Trade Alerts: Buy to open the FTNT March 32 calls (FTNT150320C00032000, $1.00, up $0.15).
Sell to close the FTNT December 29 calls (FTNT141220C00029000, $0.50, up $0.40).
Mid-Market Update: Lost in this week’s volatile action have been earnings from a number of high-profile companies. While I am looking ahead to January’s fireworks, FedEx (FDX, $171.85, up $4.07) and Oracle (ORCL, $44.53, up $3.37) both confessed to Wall Street this week.
Pre-Market Update: Low inflation is on the Fed’s list of worries, and the bulls climbed the wall of worry to clear resistance while holding their gains into the close. It was like a plot out of a Hollywood movie, as the Fed remained soft and kept rates unchanged.
Mid-Market Update: Futures have been showing higher opens after midnight, and the bulls have come out swinging on the opens this week. The problem is that the momentum is being used too early, and the major indexes have been fizzling into the close.
Pre-Market Update: It has been a while since I have used the word “epic,” but it might be the best adjective to describe Tuesday’s action between the bulls and bears. The triple-digit moves in the Dow and the nearly 100-point swing on the Nasdaq provided enough drama to make matters worse for the bulls. The bears cracked another level of support and are now close to causing mayhem on Wall Street.
Mid-Market Update: Gold ($GOLD, $1,197, up $4) tested a low of $1,130 an ounce in early November and is now trying to recover some of its luster.
Pre-Market Update: The bulls wasted all of their energy on Monday’s open following a dead-cat bounce in oil overnight. The slide in crude led to a test to double-nickels ($55/barrel), which was a level not seen since the summer of 2009.
Mid-Market Update: Futures were showing a higher open for Wall Street and held steady into the opening bell as the bulls got off to a great start. I didn’t want to see a start that was too fast and then a fade, but that is exactly what happened.
I have a lot to cover so it is crucial you absorb today’s information. I’ve done all the homework for you and the portfolio is proof in the pudding that I this is exactly what I wanted to see happen last week.
Pre-Market Update: On Fridays, I often play an office tune to reflect the current market sentiment as a way to wind down the week. I have spun some classic tunes over the years, and some of my favorites are “Squeeze Box,” “Jailbreak,” and this one, of course, “I’m Your Captain” from Grand Funk Railroad.
Mid-Market Update: It remains to be seen if Thursday’s pop was a dead cat bounce or the forming of a potential bottom. The bears have returned to the scene of the crime and are wrapping up the week on a low note.
Stop Limit triggered on Psychemedics (PMD, $14.49, down $0.04).
Pre-Market Update: The bulls showed some muscle on Thursday, but I worried about their fast start, as the monumental gains faded into the close. A good showing again today would be bullish for next week, but the bears still look hungry.
Mid-Market Update: The portfolio is in great shape to add new positions and this was the exact same way things felt in early October. This is when I started recommending a bevy of call options that did well as subscribers locked-in profits on 19 of 26 trades from then until now.
Pre-Market Update: The “Nervous Nellies” and talking heads were visibly upset with yesterday’s market pullback and once again jumped off of the bull bandwagon. I mentioned that this week’s action would shake out the weaker hands and encourage more Wall Street pros to take early vacations, but support was stretched, and that demands respect.
Mid-Market Update: The energy stocks are getting whacked again today, as over 60% of the top S&P stocks within the sector have now fallen over 30%. Incredible.
Pre-Market Update: The market went for a wild ride on Tuesday, as the bulls and bears exchanged blows in one of the more volatile sessions we have seen in weeks. The action was intense, which is why I prepared a detailed list of things to watch yesterday. It helped keep my emotions in check (and hopefully yours as well), as the game plan I covered is falling right into place.
Mid-Market Update: This morning, I covered the breakout in Pfizer’s (PFE, $31.75, down $0.22) chart and what it could mean for our option trades with February and March expirations. Now that I have reviewed the chart work, let’s take a look at the fundamentals.
Stop Limit triggered on Flextronics International (FLEX, $10.98, down $0.31).
Pre-Market Update: The bears made another appearance to start the week again, as the market fell for the second Monday in a row. The losses were less than 1%, overall, but the bulls need to be careful not to give back too much ground.
Trade Alerts: Buy to open the PFE February 33 calls (PFE150220C00033000, $0.57, down $0.09).
Buy to open the PFE March 33 calls (PFE150320C00033000, $0.68, down $0.10).
Mid-Market Update: Futures were slightly lower ahead of the overseas market opening and worsened into this morning’s open here in the United States. While this may sound strange, I was hoping for a lower open with a gradual rally into the close and, more importantly, a Monday win.
Near-term support for the Russell 2000 at 1,175-1,170 is still shaky but the test and hold to 1,150 last Monday might have been the dip Wall Street was suppose to buy. For the suit-and-ties that didn’t, they may have missed a train that is possibly headed past 1,200.
Pre-Market Update: The bulls extended their winning streak to seven-straight weeks, but tech lagged and finished lower last week. The Dow and S&P 500 showed strength, and the small-caps rebounded to end the week in positive territory.
Mid-Market Update: Wall Street’s jaw dropped following the release of this morning’s Nonfarm Payroll numbers. I mentioned yesterday that there could be a print north of 275,000-300,000, and my top-end estimate was blown away by 21,000.
Buy Brocade Communications Systems (BRCD, $11.47, up $0.10).Buy AT&T (T, $33.88, down $0.03).
Trade Alerts: Buy to open the IWM January 121 calls (IWM150117C00121000, $0.90, up $0.17).
Buy to open the QQQ January 107 calls (QQQ150117C00107000, $0.98, up $0.03).
Pre-Market Update: The market finished slightly lower on Thursday as Wall Street was waited for this morning’s Nonfarm Payrolls report. The indexes are mixed for the week heading into today’s session, with the weekly win still up for grabs. The bulls will be looking for a blowout number to signal further strength in the economy, while the bears are hoping for a number south of 200,000 jobs added.
Mid-Market Update: The market was looking for some good news regarding the European Central Bank (ECB) and its quantitative easing (QE) initiatives but has pulled back following the ECB decision to leave interest rates unchanged. ECB President Mario Draghi offered clues that QE could start in early 2015, but that wasn’t what Wall Street or the European markets wanted to hear.
Pre-Market Update: The bulls got their second-straight win following Wednesday’s trip into continued blue-sky territory. Small-caps led the way higher, but the rally was broad-based. Today’s session could be flat ahead of Friday’s Nonfarm Payrolls report.
Trade Alerts: Buy to open the JDSU January 13 calls (JDSU150117C00013000, $0.65, up $0.10).
Buy to open the JDSU March 14 calls (JDSU150320C00014000, $0.70, up $0.05).
Buy to open the AXP January 95 calls (AXP150117C00095000, $0.75, down $0.50).
Mid-Market Update: Kroger (KR, $58.78, down $0.72) will announce their quarterly earnings numbers on Thursday morning, ahead of Wall Street’s open. With shares at 52-week highs, the company will likely need an outstanding quarter with raised guidance to keep fresh 52-week peaks in play.
