Pre-Market Update: The bulls got back on track to push fresh all-time highs on Tuesday. Further choppiness is likely in store for the rest of the week with Friday’s nonfarm payrolls report in the mix. However, the blue-chips are on the verge of cracking 18,000, which could be the tide that lifts all boats.
Mid-Market Update: Although third-quarter earnings season has mostly come and gone, there are a number of other high-profile companies reporting earnings this week that are worth watching. Below is a list of the ones I will be looking at, and I will likely have a trade on two on some of these announcements. I still need to do the research and chart work, but here are the stocks I’m watching.
Pre-Market Update: The Negative Nancy’s were back in force on Monday following the bears’ first Monday blue-chip win in a month. The other indexes struggled as well, with small-caps leading the way lower. The talking heads jumped back off of the bull wagon, but it won’t be long before the train leaves the station for higher highs.
Mid-Market Update: Futures were pointing towards a decent pullback throughout the night and into this morning’s open, as Wall Street welcomes in the last month of trading for the year. I mentioned that this week could be a little rocky following six weeks of gains and, with tax-selling season underway, the bears are enjoying their moment.
Stop Limit triggered on Aruba Networks (ARUN, $18.77, up $0.06) Covered Call Trade.
The bulls wrapped up their sixth-straight week of gains and dominated November’s action with all-time highs. The market clearly has momentum, and December is historically a bullish month. However, the Russell 2000 did finish slightly lower by less than a point and remains the wild card.
Pre-Market Update: The bulls wrapped up their sixth-straight week of gains and dominated November’s action with all-time highs. The market clearly has momentum, and December is historically a bullish month. However, the Russell 2000 did finish slightly lower by less than a point and remains the wild card.
Mid-Market Update: Shares of Hewlett-Packard (HPQ) are trading higher despite earnings that fell short of Wall Street expectations. The company reported a profit of $1.06 a share on revenue of $28.4 billion. The suit-and-ties were looking for $1.06 a share on sales of $28.76 billion.
Trade Alert: Take profits and sell to close half of the VEEV December 32 calls (VEEV141220C00032000, $1.00, up $0.40) at current levels.
Stop Limit triggered on the second half of the SBUX December 80 calls (SBUX141220C00080000, $1.30, down $0.20).
Pre-Market Update: The bears took three of the four major indices on Tuesday and got a rare win in November. The bulls kept the losses in check after tapping another fresh all-time high on the open, but the pullback to lower lows was a slightly bearish signal.
Mid-Market Update: The bulls made a run to fresh all-time highs at the start of trading but have given back the majority of the gains. Tech and the small-caps are holding up, however, as the bears struggle for momentum.
Trade Alert: Take profits and sell to close half of the QQQ December 105 calls (QQQ141220C00105000, $1.15, up $0.12) at current levels.
Take profits and sell to close half of the QQQ January 106 calls (QQQ150117C00106000, $1.30, up $0.10) at current levels.
Pre-Market Update: The bulls continued their winning ways on Monday, as Tech and the small-caps led the way higher. The bears tried to make some noise, but their efforts stalled at fresh support.
Mid-Market Update: Futures were showing a flat open throughout the night and into this morning’s open as Wall Street prepared for a slow week. The majority of third-quarter earnings season has come and gone, but companies report earnings daily on Wall Street depending on their fiscal year.
Pre-Market Update: The bulls wrapped up their fifth-straight week of gains from the mid-October lows following Friday’s breakout to fresh all-time highs. The bears made an appearance after volatility became elevated on the Fed minutes, but the back test to support held throughout the week.
The major indexes are still on track to trip my year-end targets from February, and I’m already starting homework on how 2015 might play out. December will be a pivotal month, though this week’s action could be subdued, but the good news is that the week of Thanksgiving is usually a bullish one.
Mid-Market Update: Futures were showing a strong open this morning following comments from Mario Draghi and news of China’s rate cut. Both events were enough to push the market to fresh highs on the open, and the gains are holding as we make the turn into afternoon trading.
Pre-Market Update: The market rebounded on Thursday to test resistance and prior highs, as the momentum held into the close. The mini trading range from last week continued but with higher highs. Today’s close could offer clues on how next week will play out, though the action continues to favor the bulls.
Mid-Market Update: Best Buy (BBY, $37.75, up $2.21) shares are surging 6% today after the company beat Wall Street’s estimates in its latest quarterly report.
Pre-Market Update: The bulls did well recovering from the lows on Wednesday, but the action in the small-caps was either a warning sign or the last time this year Wall Street might have been able to catch the train to higher highs.
Mid-Market Update: With the market at fresh highs, the saying “this has become a stock pickers’ market” has become more pronounced as Wall Street looks for new ideas. I’m always full of “ideas,” as my goal is to capitalize on a 5%-10% move in a stock that allows me to make double- and triple-digit profits with the right options.
Trade Alert: Take profits and close the SPLS December 14 calls at current levels.
Staples (SPLS) reported a better-than-expected quarter, and shares are surging past $13 in pre-market trading. I wanted to update the current position on SPLS heading into the open, and possibly afterwards, so everyone is on the same page.
Pre-Market Update: The market continued its historic run on Tuesday, as the bulls pushed fresh all-time highs and left Wall Street speechless while fund managers continue to wait for a pullback. The traders that took advantage of the October pullback, like us, continue to enjoy happy hour, but it’s important that we pace ourselves and continue to watch the action.
Mid-Market Update: Wall Street will be rolling out the red carpet for Best Buy (BBY, $34.47, down $0.82) on Thursday morning as the company confesses its latest earnings numbers.
Pre-Market Update: The bears made some noise on Monday, but the result was another failed test at slowing the bulls’ momentum. The broader market rebounded to post slight gains, while Tech and the small-caps suffered losses and languished near short-term support.
Stop limit triggered on Bank of America (BAC).
Mid-Market Update: Third-quarter earnings season is winding down this week, as the off-cycle companies start to report their numbers into December depending on their fiscal years. The second week of January is when fourth-quarter numbers and 2015 guidance will take center stage.
Pre-Market Update: The bulls brushed back the bears’ feeble attempts to change momentum last week, as the charge to all-time and decade-highs continued. The major indices were higher for the fourth-straight week and are showing steady gains in a historically bullish month.
The bulls brushed back the bears’ feeble attempts to change momentum last week as the charge to all-time and decade highs continued. The major indexes were higher for the fourth-straight week and are showing steady gains in a historically bullish month.
Mid-Market Update: I’ve been waiting for some late-day clues to see how next week might play out, and all signs are pointing towards higher highs. The final hour of trading can always get interesting, so happy hour won’t officially start until 4:01 p.m. ET for some Wall Street traders.
Pre-Market Update: The bulls looked good on paper following Thursday’s pop to new highs. However, the late day fade and rebound did some damage, as the small-caps failed to recover.
Trade Alert: Buy to open the BBY December 39 calls (BBY141220C00039000, $0.60, up $0.05).
Mid-Market Update: The Retail sector has been in focus lately, along with Homebuilding stocks, and both sectors have shown some strength this week.
Pre-Market Update: The bulls continued to push fresh highs on Wednesday even as the market ended mixed. The bears got slight wins on the broader market, while the bulls took Tech and the small-caps. The strength in the Russell was the real story, as the small-caps finally cleared a key level of resistance.
Mid-Market Update: The bears have controlled much of today’s action following five consecutive days of record closes. The bulls are bouncing off of the lows heading into the second half of trading, but I talked about the possibility of a trading range forming this week and possibly into next week before another “breakout” to fresh highs.
Pre-Market Update: The lack of action in Tuesday’s session favored the bulls, as the major averages continued their record run into blue-sky territories. Wall Street is having a hard time buckling up with other suit-and-ties that are still waiting at the train station with the bears. The game of musical chairs is getting crowded, so it is still important to listen to the music.
Trade Alert: Stop limit triggered on the JPM December 62.50 calls (JPM141220C00062500, $0.70, down $0.20).
Buy Discovery Laboratories (DSCO, $1.60, up $0.01) common stock at current levels.Sell to open the DSCO April 2015 $2 calls (DSCO150417C00002000, $0.40, flat).
Mid-Market Update: The market has traded in a tight range throughout today’s session, with both the bulls and the bears getting in on the action. Economic news has been light and, with the bond market closed, trading has been choppy but quiet.
Pre-Market Update: The bulls got back on a Monday win streak and continued to push fresh highs in yesterday’s session. The technical picture still points towards higher highs, but the small-caps and VIX keep teasing the scene.
Mid-Market Update: The bulls are dropping some good Monday clues that higher highs are in store. The blue-chips have gotten the green light for a possible run to 18,000 while the VIX continues to work its magic.
Once Wall Street recognizes that the Nasdaq is headed for a test of its all-time highs, there could be some chasing. All that money on the sidelines will be itching to go to work as fund managers who have underperformed the market start to panic.
Pre-Market Update: Stocks were tepid heading into last week, as mid-term elections and economic news played a major role in the direction of the market. The bulls were on the brink of revisiting all-time highs, while the bears were looking to get back on track.
Trade Alert: Take profits and sell to close half of the SBUX December 77.50 calls (SBUX141220C00077500, $1.80, up $0.10).
Mid-Market Update: I wanted to provide another update to my previous take on Alibaba (BABA, $114.44, up $2.87), as there has been intense action since shares went public back in September when nearly everyone was calling for a market top.
Pre-Market Update The bulls kept their momentum by pushing new all-time highs on Thursday and are looking for another “breakout” on a good Nonfarm Payrolls report this morning.
Mid-Market Update: I had been working on an “education” article for today’s update that I hoped to be ready but realized I was running out of time. My attention has been focused on the Republican party today, as I wanted to see what rhetoric they were spinning.
Trade Alert: Buy to open the SBUX December 80 calls (SBUX141220C00080000, $0.70, up $0.10).
Pre-Market Update Wall Street finished higher on Wednesday despite the bears’ best efforts to limit the gains. Another fresh all-time high was set by the bulls, but the choppy action was frustrating, as Tech failed at its second layer of resistance for the third session in a row.
Mid-Market Update: I normally stay up just before the overseas markets open and rise-and-shine two hours ahead of Wall Street’s open. However, last night had some extra flavor, as the mid-term elections lasted well into the early morning, but the payoff was a higher futures market that led to a great night’s sleep.
Pre-Market Update The market ended mixed for the second-straight session on Tuesday, while the mid-term elections lasted late into the night. Although the Republicans were expected to win a majority in the Senate, the nervousness showed in another choppy session.
Trade Alert: Buy to open the QQQ December 5th expiration 103 calls (QQQ141205C00103000, $0.85, down $0.23).
Mid-Market Update: Futures were choppy throughout the night and into this morning’s open and were indicating another tight trading session for today. The bears have been a little more aggressive in pushing near-term support, but the bulls are responding well, as there are pockets of strength in the market.
Pre-Market Update The bears ended their two-session Monday slide by getting a rare victory on the first trading day of November. The losses were contained, however, as the bulls held fresh support that served as prior resistance while pushing higher highs. Tech was steady, but oil closed below $80 for the first time in nearly two years, which may have had an impact on the action.
Mid-Market Update: Futures were showing a slightly lower open this morning following disappointing data from China, but short-term support held following the dip. Tech has shown strength, and new all-times have been triggered on the Dow and S&P 500 as we head into the second half of trading.
Buy to open Psychemedics (PMD, $14.45, up $0.07) at current levels.
Sell to close the AMZN November 260 puts (AMZN141122P00260000, $0.30, down $0.20) at current levels.
November is historically a bullish month for the market. December is also a bullish month for stocks, and my year-end targets I gave in February 2014 could be back on the map on continued smooth sailing.
Pre-Market Update I mentioned that October is usually a “bear-month killer,” but the talking heads and suit-and-ties once again doubted the bulls’ resiliency and were surprised to see all-time highs reached on Halloween.
Mid-Market Update: Despite the negative sentiment and doubters of the current two-week rally, the bulls are showing nice gains for October and are putting the finishing touches on an incredible month.
Pre-Market Update: It was another choppy session on Wall Street Thursday before the bulls used a final hour rally to push another layer of resistance.
Shares of DSCO traded down to $1.79 and the Stop Limit of $1.80 triggered on the dip.
Mid-Market Update: Buy to Open the QQQ November 102 calls (QQQ141122C00103000).
Pre-Market Update: Trading was choppy on Wednesday as the bears controlled much of the action before and after the Fed minutes were released. To no surprise, the Fed heads ended quantitative easing, and now the debate begins on if it was the right move or not.
Mid-Market Update: Shares of Facebook (FB, $75.82, down $4.95) are down 6% today despite a stellar earnings report that was released after Tuesday’s close. I mentioned yesterday that the options market was pricing in a 10% move in the stock, and shares were near $72 in after-hours trading last night.
Pre-Market Update: The bulls didn’t want to wait for today’s Fed minutes to be released, as they made a decisive move above resistance on Tuesday. The bears were nowhere to be found, and the major indexes traded in positive territory throughout the session.
Mid-Market Update: Shares of Facebook (FB, $80.96, up $0.68) have reached a fresh 52-week peak ahead of its earnings report, which is due out after today’s close.
Pre-Market Update: The market finished mixed on Monday, as the action between the bulls and bears ended in a draw. The bears controlled much of the session, with the bulls holding support and showing some strength. Today could be much of the same, as I’m expecting another flat action session into the release of the Fed minutes on Wednesday.
Mid-Market Update: The bulls would like to get a Monday win to keep last week’s momentum going, but, after the first half of trading, they have a little catching up to do.
Pre-Market Update: Wall Street was caught flat-footed last week, as the suit-and-ties jumped back on the bulls’ bandwagon in quick fashion.
The chart work for 2014 has been incredibly accurate and while I prepared for a market pullback in mid-September, and nearly called exact bottoms, I still believe this is one of the riskiest markets I have traded in years.
I wanted to provide a quick update on one of the current trades ahead of the weekend.
Mid-Market Update: There was a little weakness on the open this morning, but the bulls powered through the sluggishness and are pushing higher highs to end the week.
The spending spree at Amazon.com (AMZN) continues at all costs, literally, as the company reported a wider-than-expected loss for the quarter. It was nearly a given that they would come in with heavier losses, but investors are starting to tire of its massive investments and disregard to become a consistently profitable company.
Pre-Market Update: The bulls are making Wall Street a believer following Thursday’s run to the 200-day moving averages.
Mid-Market Update: The bulls are enjoying one of their best days of the year and are making a run at the 200-day MA’s (moving averages) as well as the 10-year uptrend lines.
Pre-Market Update: Headline news — good or bad — can be used daily to describe why the market went up or down, but the technical picture allows you to ignore the noise.
I wanted to provide a quick update on our Amazon.com (AMZN, $315.47, up $0.14) trade from this morning ahead of the earnings announcement on Thursday, Oct. 23, after the close.
Mid-Market Update: The bulls were rolling in the first half of trading, but volatility has returned, as the bears are looking to take control of the action into the close.
Buy to open the AMZN November 360 calls (AMZN141122C00360000, $2.10, up $0.80).Buy to open the AMZN November 260 puts (AMZN141122P00260000, $1.95, down $0.60).
Pre-Market Update: The charts showed room for a 3%-5% snapback rally over the near-term. The bulls are doing their best to make that happen in a week or less. The bears will likely have something to say at some point, but the momentum to the upside is becoming just as impressive as the recent move to the downside.
Buy Flextronics International (FLEX, $9.12, up $0.17).
Mid-Market Update: Shares of Apple (AAPL, $101.87, up $2.11) are back over $100 after announcing another stellar quarter following Monday’s close.
Trade Alerts: Buy to open the BABA November 95 calls (BABA141122C00095000, $2.30, up $0.60).
Buy to open the TWTR January 67.50 calls (TWTR15011700067500, $0.90, up $0.10).
Trade Updates: Set Limit Orders to close half of the MCD November 85 puts at $1.40.
Set Limit Orders to close half of the APOL November 23 puts at $1.40.
Pre-Market Update: The blue-chips fell triple-digits on Monday’s open, but the bulls recovered by the close to end a four-session Monday losing streak, and they got a clean sweep across the board.
Mid-Market Update: I had a long Sunday that lasted into the early hours of this morning and, when I tried to get some shut-eye, futures were showing a positive open and the possibility of a continued bullish run to start the week. Things quickly changed after “Big Blue” pre-announced earnings, which weighed down the Dow by nearly triple-digits on the open.
There will be plenty of action to talk about during another busy week, and I have done my best to show you some of the first clues I will be watching. The bulls will be trying to continue their rebound, and a positive Monday close would be a good start to the week.
Pre-Market Update: The bears extended their Monday winning streak at the start of last week despite the historic odds that the bulls might slow the current downslide. They gave it a “college try,” but resistance was too much and the market folded like a cheap lawn chair during the second half of trading.
Buy Aruba Networks (ARUN, $19.24, down $0.20).
Sell to open the ARUN November 20 calls (ARUN141122C00020000, $1.20, down $0.15).Buy Bank of America (BAC, $16.23, up $0.15).
Mid-Market Update: October option expiration has been bearish over the past decade, as the Dow has fallen six-straight and in eight of the past 10 years. However, the bulls are looking to end the streak and possibly win the week with today’s gains.
Pre-Market Update: The mixed and volatile action on Wall Street continued on Thursday, with the bulls getting the overall win. The bears failed to make lower lows but are on track for their third-straight weekly win.
Mid-Market Update: The bears took another swipe at support following less-than-stellar earnings results from eBay (EBAY, $47.35, down $2.85) and a lowered forecast from Netflix (NFLX, $352.70, down $95.89).
Pre-Market Update: It was a ferocious Wednesday on Wall Street, as the bears pushed the lows from April, and they are now eyeing February’s trough. Volatility went through the roof, and the incredible comeback by the small-caps only added to the insanity.
Mid-Market Update: The bears are continuing their assault on a bloody Wall Street, as panic has officially set in. Today’s action is being blamed on a number of headlines, and the main three are Ebola, Europe and the economy.
Trade Alert: Buy to open the MCD November 85 puts (MCD141122P00085000, $0.70, up $0.18).
Buy to open the QQQ November 99 calls (QQQ141122C00099000, $1.40, up $0.17).
Pre-Market Update: The bulls ended a three-session skid, for the most part, on Tuesday after holding down another volatile and choppy session. The indexes still struggled with major resistance and, more importantly, holding Tuesday’s gains. The flat finish leaves us with a market that can’t be trusted.
Mid-Market Update: The current volatility has been challenging to deal with, as the whipsaw action has taken me out of a few good trades. I have focused more on put trades in recent weeks and, while it is always nice to make a profit, sometimes you feel jaded when your homework was right but the return could have been bigger.
