Mid-Market Update: The bulls are looking to hold Friday’s momentum and the gains from the first week of August as they try to start the week with a bullish Monday. Of course, we are only halfway through the session, and the major indices have traded within a tight range on both sides of the ledger. Typical.
Pre-Market Update: While tech pushed higher highs, the “rounding top” on the Dow that I warned about coming into this month got worse last week. The lower lows and break below near-term support for the blue-chips on Tuesday helped speed up the selling pressure, and the bears cracked near-term support.
Mid-Market Update: Shares of FireEye (FEYE, $14.70, down $2.05) are getting crushed today following another disappointing quarter. The company lost 33 cents on sales of $175 million. Wall Street was looking for a loss of 39 cents a share on revenue over $181 million.
Action: Sell to close the GDOT August 25 calls at current levels.
Pre-Market Update: The weekly battle between the bulls and bears comes down to today’s action as each side holds a piece of the pie. Given the current trading range, it’s doubtful a major move will come today, but it could, following the release of the jobs reports due out ahead of the open.
Mid-Market Update: The bulls are trying to continue Wednesday’s gains and reclaim upper resistance with some follow through. The bears are still eyeing the 50-day moving averages and backup support as we wind down the final hour of trading.
Pre-Market Update: All year long, the bulls and bears have walked the plank with each side only inches from falling into deeper peril before things suddenly get better. I often say one session doesn’t make a trend and the return of the longer-term one-year “trading range” is back still play.
Mid-Market Update: Companies reporting earning this week face a number of factors in what has been a stormy week or so since the recent market highs. While it was a fun run cashing out bullish call option trades from June through early August, I mentioned this week could be a white-knuckle ride.
Pre-Market Update: The bears gained additional supporters on Tuesday as more talking heads and slick talking pros abandoned the bullish vessel. While the waters are rocky, the bigger test for the bulls will be at the 50-day moving averages on continued weakness. I mentioned the start of August is historically weak and I’m neutral before getting aggressively short, for now.
Mid-Market Update: Futures were showing a positive open after midnight but Japan’s “surprise” $274 billion stimulus package ahead of this morning’s open was a curve ball Wall Street hadn’t penciled-in this week. To be fair, not too many slick talking pros figured Japan would be back at it again this soon with regards to stimulating their economy. However, there isn’t anything in the global or currency markets that should come as a surprise to anyone these days.
Pre-Market Update: The market followed its most recent trading pattern with another mixed closed lead by Tech higher and the Dow lower. The biggest concern is that while the current divergence is happening in a widening trading range, the lower lows on the blue-chips remain a troubling sign.
Buy to open the RMBS September 14 calls (RMBS160916C00014000) for a maximum price of $0.45.
Mid-Market Update: Second-quarter earnings season is still in session following the flood of numbers from July. While some of the biggest and largest market cap companies have already reported, there are still some heavy hitters stepping up to the plate this week and during August.
Pre-Market Update: The bulls four-week win streak came to an end as the bears took a slice of the action. Despite the mixed action and three-week trading range, the technical outlook remains bullish. However, there are a few bearish signals, especially on the Dow, that are forming and something that remains a concern going into this week.
Mid-Market Update: The bulls will likely get the weekly win by the close of trading today despite the Dow’s four-week winning streak coming to an end, as the blue-chips are heading south while tech is trading higher.
Pre-Market Update: Thursday’s session was choppy once again, and the major indices ended mixed after trading within another tight range. The Dow has been setting lower lows, while tech has been pushing higher highs. Today’s action could provide more of the same, but a higher close ahead of the weekend would be bullish for next week.
Mid-Market Update: Today’s action has been mixed, and the market has traded within another tight range. I’ve been super busy setting up our next batch of trades, so I apologize for today’s short commentary, but I have updated our current positions.
Pre-Market Update: It was another mixed session on Wednesday, as the bears stayed active and pushed the VIX past 13.50. The Federal Open Market Committee (FOMC) meeting was a non-factor, as it left interest rates unchanged.
Mid-Market Update: I live in a small city, and I was amazed by a recent trip I took downtown last week. Besides fighting through traffic to find a parking spot, I also had to navigate through pedestrians on nearly every street. Most of the jaywalkers used to lookout for traffic, but I noticed that not many were on this night. Instead, they were walking aimlessly, staring at their smartphones.
Buy to open the VUZI September 10 calls (VUZI160916C00010000) for a maximum price of $1.30.
Pre-Market Update: The bears are working overtime this week, as they managed to grab another slice of the Dow’s pie on Tuesday. The bulls were stingy and didn’t want to share, however, as they needed fuel to power to high highs. A good report from Apple (AAPL, $96.67, down $0.67) following the close should help keep the momentum in tech going following the $0.04 beat.
Mid-Market Update: The major indices are mixed heading into the closing bell following another tight intraday trading range. McDonald’s (MCD) and Verizon (VZ) are weighing on the Dow, while tech is trying to push higher highs ahead of Apple’s (APPL) earnings announcement this afternoon.
Pre-Market Update: The bears were a nag on Monday, as they took over the bulls’ camp for a day. The damage was minor, but volatility was slightly heightened on the backtest to fresh support. With second-quarter earnings heating up this week, the action should help sway the market to higher highs or possibly lower lows.
Mid-Market Update: I mentioned previously that a few major earnings announcements are due to be released this week. In fact, this will be the busiest week for second-quarter earnings, with 35% of S&P 500 companies scheduled to report their numbers. I will cover a few of the major names this week, as I would like to take an earnings trade or two.
Pre-Market Update: The bulls have now extended their winning streak to four-straight weeks, and it has included records highs and a run to upper resistance. Tech showed strength throughout last week and helped pull the overall market into positive territory.
Buy to open the RMBS September 14 calls (RMBS160916C00014000) for a maximum price of $0.55.
Mid-Market Update: The Dow came into today’s session with a 1-point gain for the week, while the S&P 500 was higher by nearly 4 points. The Nasdaq has shown the most strength, as it was up 44 points, or nearly 1%. However, the Russell 2000 was down roughly 2 points for the week, but it did trade to its highest level of the year yesterday.
Pre-Market Update: Heading into today’s session, the bulls have a little wiggle room in their quest to get the weekly win. However, another negative close could give the bears a lift as the heat of the summer doldrums sets in. A split week wouldn’t be too bad, as it would still favor the bullish momentum, but we will have to watch out for any red flags going into today’s close to make sure higher highs are in store.
Mid-Market Update: The bears are making a push to fresh support today as the bulls take a breather from the ongoing four-week-long rally. The first half of the action was mixed, and the losses will likely stick unless there is some magic during the final hours of trading.
Pre-Market Update: The bulls made a strong statement once again on Wednesday following another run to record highs. The recent rally is the strongest in three years, and it is becoming more hated each day by those on Wall Street that have missed the train. While worries over a pullback persist, I have mentioned that July could stay strong all month long.
Mid-Market Update: Although I don’t take too many earnings trades, our recent win in Rambus (RMBS) went rather well. While we were lucky on some fronts, solid homework and chart work helped the portfolio score another win this week.
Pre-Market Update: The bears made a little noise on Tuesday, but they were unable to get a clean sweep, as the Dow closed higher for the eighth-straight session. The bulls held rising support, and they still look strong enough to push higher highs.
Mid-Market Update: The results of second-quarter earnings season will likely determine whether the bulls can continue their momentum or if it will be derailed by the bears as more heavily weighted stocks lose their steam. While some behemoths have reported better-than-expected numbers, other high-profile companies have disappointed.
Take profits and sell to close the RMBS August 13 calls at current levels.
Pre-Market Update: The market edged higher on Monday ahead of a number of key earnings reports. International Business Machines (IBM, $159.86, up $0.08) should give the blue-chips a lift today, as the company posted higher revenue on an earnings beat after the close. Goldman Sachs (GS, $163.33, up $1.69) could help or hinder futures once Wall Street processes the company’s numbers, which are due out ahead of this morning’s open.
Mid-Market Update: The earnings parade will pick up steam this week, as nearly 20% of S&P 500 companies, along with a number of Dow components, will be reporting earnings. After today’s close, International Business Machines (IBM, $159.85, up $0.07) and Netflix (NFLX, $99.93, up $0.94) will announce their quarterly results, while Goldman Sachs (GS, $172.98, up $.34) will step up to the podium ahead of Tuesday’s open.
Pre-Market Update: The four-month trading range is officially over, as the bulls have put together a three-week winning streak for the first time since March. Volatility also flattened and is at its lowest levels of 2016, with 52-week lows in site.
Mid-Market Update: Futures were mixed throughout the night, but they turned positive ahead of this morning’s open. The bulls did well and pushed higher highs on better-than-expected economic news, but I warned that the bears like to show up on the day of July option expiration.
Buy to open the MGM August 24 calls (MGM160819C00024000) for a maximum price of $0.90.
Pre-Market Update: The bulls are on track for their third-straight week of gains following Thursday’s sweep of the major indices. The bears have laid low throughout the week, but they may come out of their caves today for July options expiration. However, volatility continues to sink and is forecasting that higher highs could be possible for a few more weeks.
Mid-Market Update: The bulls continue to push higher highs, and the “fluff” targets I listed previously for the Dow and S&P 500 are firmly in play. I have already started my weekend homework, as I believe that this week’s action could determine how long the current rally will last.
Take profits and sell to close the MS August 28 calls at current levels.
Buy to open the RMBS August 13 calls (RMBS160819C00013000) for a maximum price of $0.50.
Pre-Market Update: The bullish momentum the market has seen lately slowed on Wednesday, as the bears made an appearance during the overall lackluster day of trading. The good news is that volatility dropped below another key level of support, confirming possible higher highs.
Mid-Market Update: I mentioned in Monday morning’s Pre-Market Update that shares of Deutsche Bank (DB, $13.99, down $0.11) may be ripe for the picking. The stock came into the week just south of $13 after bottoming at $12.50 on Wednesday and Thursday of last week. I also mentioned that there could be a rebound to the mid-teens worth playing, and I wish I had gotten us into the call options I profiled.
Buy to open the RMBS August 13 calls (RMBS160819C00013000) for a maximum price of $0.50.
Pre-Market Update: The Dow and S&P 500 are garnering headlines this week following their moves to record highs, but the strength of the small-caps can’t be ignored. The Russell 2000 cleared major resistance, as did the Nasdaq, to give the bulls their third-straight win on Tuesday. However, volatility stayed slightly elevated for the second-straight session.
Mid-Market Update: The Dow was the latest index to break out to fresh all-time peaks following this morning’s run to 18,363. The other major indices are also showing strength, but volatility is slightly elevated as we wind down the final hours of trading.
Pre-Market Update: The bulls powered the major indices to fresh highs and all-time peaks during Monday’s push through upper resistance. Tech made a run past 5,000 before closing slightly below this level, and volatility rose slightly despite the bears’ non-showing.
Mid-Market Update: Futures were strong throughout Sunday night and into this morning’s open, and the S&P 500 has tapped fresh all-time highs at 2,141.22 today at the time of this writing.
Buy to open the CSCO August 30 calls (CSCO160819C00030000) for a maximum price of $0.62.
Pre-Market Update: The market was choppy throughout last week as Wall Street dealt with post-Brexit woes and Friday’s nonfarm payrolls report. Tech and the small-caps showed strength going into the end of the week, however, and that was a good clue that a continued rally would take place.
Buy to open the ACHN August 10 calls (ACHN160819C00010000) for a maximum price of $0.55.
Mid-Market Update: One of my favorite stocks is RAVE Restaurant Group (RAVE, $3.91, up $0.06), which is a company I have followed closely for four years.
Pre-Market Update: The bulls will be looking to get their second-straight Friday win today following this morning’s nonfarm payrolls report. Thursday’s results were mixed, as was the action for the week. While the bears are winning on some fronts, a solid session today would give the bulls the overall weekly win.
Mid-Market Update: The market is mixed this afternoon after pushing higher highs earlier this morning. Some of the nervousness can be blamed on tomorrow’s jobs report that is due out before the opening bell, although there have been a couple of reports that showed employment growth may have rebounded in June.
Buy to open the GDOT August 25 calls (GDOT160819C00025000) for a maximum price of $0.90.
Pre-Market Update: The bears tried to extend their winning streak to two-straight sessions, but they ran out of gas mid-day. On the other hand, the bulls pushed and cleared resistance into the close, with volatility falling below 15 again.
Mid-Market Update: Futures were forecasting weakness late last night, and they stayed under pressure into Wall Street’s opening bell this morning. The action turned positive mid-day, however, and the bulls are holding nice gains as we head into the close of trading.
Pre-Market Update: The market was weak throughout Tuesday’s session as a result of lower oil prices and concern about the Italian banks, according to the talking heads. The technical picture looked more promising, however, as support levels held before the rebound off of the lows into the close.
Mid-Market Update: Alcoa (AA, $9.21, down $0.34) shares tend to trend either higher or lower into the company’s earnings announcement and, while a nice pop usually occurs afterwards, the action after the news can be counterproductive depending on the results. The company has topped estimates during the past two quarters by $0.05 and $0.02, respectively, but it missed by $0.06 and $0.03 during the two previous quarters. This makes an earnings trade in the name risky.
Pre-Market Update: The bears tried their best to cause wide-spread panic on Wall Street last Monday, but a quick “double bottom” that went unnoticed by the suits-and-ties was made in the process. The rest of the week was controlled by the bulls, as the indices made average daily moves of 2% before relaxing on Friday ahead of the three-day weekend. With the first half of the 2016 action behind us, the next six months promise to be just as exciting, with continued whipsaw action and explosive volatility.
Mid-Market Update: I mentioned in this morning’s Pre-Market Update that the bulls had a little more work to do to get the month of June to turn green. The action has turned higher today following a sluggish start to the session, and the bulls are giving the bears all they can handle as they go for their third-straight daily win.
Pre-Market Update: The bulls have now recovered roughly 80% of the Brexit losses, and they will be looking to get back to even ahead of the upcoming July 4 U.S. market holiday. The bears are looking to get back into the game as well following three days of heavy losses for their side, and today’s close will likely set up the action heading into next week.
Mid-Market Update: I mentioned in this morning’s Pre-Market Update that the bulls had a little more work to do to get the month of June to turn green. The action has turned higher today following a sluggish start to the session, and the bulls are giving the bears all they can handle as they go for their third-straight daily win.
Buy to open the CSCO August 29 calls (CSCO160819C00029000) for a maximum price of $0.60.
Pre-Market Update: The bulls won their second-straight session in spectacular fashion yesterday to position themselves for what could be a positive June. The Dow and S&P need to generate gains of roughly 1% today to ruin the bears’ spirits, while Tech and the small-caps need to make up 2%. Traders will be jockeying for position today ahead of the monthly and quarterly close, so the action should remain elevated on the last trading day of June.
Buy to open the SWKS August 65 calls (SWKS160819C00065000) for a new maximum price of $2.55.
Mid-Market Update: The bulls are pushing session highs as we make the turn into the second half of trading today. The major indices have cleared another layer of resistance, and I would like to see the current levels hold into the close.
Buy to open the SWKS August 65 calls (SWKS160819C00065000) for a maximum price of $2.30.
Pre-Market Update: While Tuesday’s relief rally looked promising, it is too early to tell if Monday was “the” temporary bottom from the Brexit woes, as one day doesn’t make a trend. However, the oversold bounce cleared resistance, and volatility plummeted 21%. One famous talking head said yesterday that the VIX doesn’t tell investors anything, but the suits-and-ties certainly don’t know how to trade volatility.
Buy to open the WATT August 12.50 calls (WATT160819C00012500) for a maximum price of $1.60.
Mid-Market Update: I mentioned previously that this week could see some whipsaw action on lower volume as the dust settled from last week’s Brexit drama, and futures confirmed that a temporary bottom may have been made on Monday, as they were strong throughout the night and held into this morning’s open.
Sell to close the second half of the MSFT July 48 puts at current levels.
Pre-Market Update: While the market exhibited both bullish and bearish clues during Monday’s continued pullback, the losses incurred over the last two trading days have made for the worst two-day decline since last August. However, the mini “selloff” has been orderly by most standards. Surprisingly, volatility was lower yesterday, but I mentioned in Monday’s Pre-Market Update that a quick recovery could be in store based on this year’s past performance.
Mid-Market Update: To no surprise, the backup support levels I mentioned in this morning’s Pre-Market Update are now in play as a result of today’s 2% pullback. I also talked about the potential for another 3%-4% slide to make up for the overseas markets, but, interestingly, volatility has been calmer than it was on Friday, as the VIX has traded lower for much of today’s session.
Take profits and sell to close the first half of the MSFT July 48 puts at current levels.
Pre-Market Update: The bulls started last week off with a strong performance that pushed the market’s upper resistance levels and tried to establish fresh support, but the bears took advantage of the sketchy Fed-speak on Tuesday and Wednesday to keep the two-month trading ranges intact. This was expected, as the Brexit vote was also an overhang going into Thursday. However, what wasn’t expected was a push past resistance ahead of the news.
Mid-Market Update: The first word I got on the Brexit vote came nearly four hours after the market closed on Thursday, and the race was tight, with 51% of the U.K. electing to stay and 49% voting to leave. This was an early indication that a donnybrook would occur throughout the night. My initial reaction was that the vote was closer than the market expected and that a possible selloff was in play.
Sell to close the IRBT July 38 calls at current levels.
Sell to close the INO July 12 calls at current levels.
Pre-Market Update: The market stayed strong from the start of trading into the closing bell on Thursday as Wall Street took early bets on a “positive” outcome from the Brexit vote. There weren’t many bearish bets being made that Britain would leave the European Union ahead of yesterday’s vote, although I mentioned that there could be a sell-the-news event afterwards. The good news is that the Brexit wait is over, and today’s action will most likely influence next week and possibly July.
Buy to open the MS August 28 calls (MS160819C00028000) for a maximum price of $0.85.
Buy to open the VIAV September 7 calls (VIAV160916C00007000) for a maximum price of $0.55.
Mid-Market Update: The bulls are pushing fresh weekly highs today as voting on the “Brexit” vote winds down overseas. The polls will close at 5 p.m. EST, but the result as to whether Britain will leave or stay in the European Union won’t be known until 3 a.m. EST on Friday.
Pre-Market Update: The bulls tried to extend their winning streak to three-straight sessions yesterday, but they fell shy of doing so following the weakness that arose during the final hours of trading. The nervousness was to be expected, however, with the results of the Brexit vote pending ahead of today’s action.
The $1.10 Stop Limit was triggered on the WATT August 12.50 calls.
The $0.50 Stop Limit was triggered on the VIAV September 7 calls.
Mid-Market Update: Market participants spent the first half of today’s trading session waiting for and listening to Fed Chair Janet Yellen’s comments regarding last week’s Federal Open Market Committee (FOMC) meetings. After reading her prepared statement, she continued to stress caution about the jobs market and the potential “Brexit” in the Q&A session that followed.
Pre-Market Update: Despite continued “Brexit” worries and concerns relayed by Fed Chair Janet Yellen, the bulls held their momentum for most of Tuesday’s session to get the overall market win. Although some damage was done to the small-caps, the bears failed to gain any traction against rising support.
Mid-Market Update: Market participants spent the first half of today’s trading session waiting for and listening to Fed Chair Janet Yellen’s comments regarding last week’s Federal Open Market Committee (FOMC) meetings. After reading her prepared statement, she continued to stress caution about the jobs market and the potential “Brexit” in the Q&A session that followed.
Pre-Market Update: Wall Street woke up in a good mood on Monday following the overseas market action, and the rebound rally held into the close. Although the indices finished well off of their highs, key resistance levels were tested. The bears aren’t likely to go away quietly during of a week packed full of market-moving events, but they did lose some of their momentum.
Buy to open the IRBT July 38 calls (IRBT160715C00038000) for a maximum price of $0.65.
Mid-Market Update: Aside from this week’s events concerning the Federal Reserve and the “Brexit” vote, there are a few notable companies that are scheduled to report their latest numbers this week. Second-quarter earnings season officially starts in early July, but companies with different fiscal years will be reporting up until then.
Pre-Market Update: The bears wrapped up a volatile week of trading with Friday’s market pullback to get the weekly win. The bulls were caught backpedaling throughout last week as lower lows came into play, and this week promises more of the same volatility, with Fed news here in the United States and the “Brexit” vote overseas.
Mid-Market Update: Futures were choppy throughout the night, but they turned negative ahead of the opening of overseas markets. The action improved slightly ahead of the start of trading on Wall Street to open flat, but the bears have the lead at halftime.
Pre-Market Update: The bears pushed lower lows on Thursday, but the bulls refused to go away quietly. While the market did manage to make a trip into positive territory following the nasty open, the highs were lower than those that were made during Wednesday’s session. Lower lows and lower highs are usually bearish signals, but bullish clues are still in the mix as well.
Buy to open the WATT August 12.50 calls (WATT160819C00012500) for a maximum price of $1.15.
Buy to open the VIAV September 7 calls (VIAV160916C00007000) for a maximum price of $0.55.
Mid-Market Update: Shares of Nike (NKE, $53.27, down $1.04) have been in a downtrend since they peaked north of $65 in mid-March. The 52-week high is just above of $68, and the 50-day moving average looks nasty. Trouble started in mid-April when the 50-day moving average breached the 200-day moving average, which formed a “death cross.” This is usually a bearish setup, but I often mention that “stretch” levels can come into play, which is what we are currently seeing in the market.
Pre-Market Update: To no surprise, the Federal Open Market Committee (FOMC) held interest rates steady without an increase on Wednesday. Coming into 2016, Wall Street was factoring in up to three or four more rate hikes for 2016, but I have mentioned all year that the financial stocks would be lucky if they got just one.
Mid-Market Update: While I would have loved to have been able to trade the backtest to and breach of the 50-day moving averages, the gap-downs and whipsaw action this week have made it extremely difficult to open fresh trades. I warned coming into the week that I wouldn’t be able to get a good feeling about how the market would trade over the rest of the month until Wednesday rolled around.
Pre-Market Update: The Doobie Brothers are still touring, and they are coming to my home state in early July. Given the recent trading range, I feel that this morning’s headline — also the title of one of their albums — is appropriate, and it fits my mood this week. Watching the computer and looking at hundreds of charts has been a tedious task, but I see some big paydays in the weeks ahead.
