The market suffered its worst trading day in months on Wednesday, as volatility soared to fresh highs and the August lows came back into play. However, the bulls recovered nicely from the mid-day madness, and the small-caps rebounded to regain positive territory by closing bell.
Pre-Market Update: The market suffered its worst trading day in months on Wednesday, as volatility soared to fresh highs and the August lows came back into play. However, the bulls recovered nicely from the mid-day madness, and the small-caps rebounded to regain positive territory by closing bell.
The Stop Limit at $0.95 on the second half of the GM February 28 puts has triggered on today’s rebound in GM shares.
Mid-Market Update: Shares of Starbucks (SBUX) are holding the 50-week moving average at $54.53 but face further risk to $50, and possibly $45 and the 100-week moving average, on an earnings miss, or lowered guidance. A rebound to $57.50-$60 could come on a blowout quarter, but that might be asking a lot.
Raise the Stop Limit on the GM February 28 puts from $0.65 to $0.95 on the other half of the trade.
Cancel orders to buy the KSS February 42.50 puts (KSS160219P00042500, $1.32, up $0.48).
Buy to open the GRMN February 30 puts (GRMN160219P00030000, $0.93, up $0.18) at current levels.
Buy to open the HOG February 37.50 puts (HOG160219P00037500, $1.20, up $0.15) at current levels.
Buy to open the KSS February 42.50 puts (KSS160219P00042500, $0.95, up $0.11) at current levels.
Pre-Market Update:The S&P 500 Volatility Index stayed subdued throughout the session before a late day surge to 27.59. The bulls held resistance at 27.50 with risk to 30-35, if breached. The bears held support at 25 following the morning trip to 25.21. The action in the VIX remains slightly bearish as there are additional layers of support at 23.50-22.50 that carry more weight.
Mid-Market Update: I have a couple of Profit Alerts as the Stop Limits on Intel (INTC) and Nike (NKE) have been breached. I have also raised the Stop Limit on our General Motors (GM) trade.
It felt like a Paul Simon week for the bulls as they struggled with resistance before totally collapsing to fresh 2016 lows on Friday. The August 2015 lows are now in play, and the bears will be looking for weak corporate earnings to keep their momentum.
Pre-Market Update: It felt like a Paul Simon week for the bulls as they struggled with resistance before totally collapsing to fresh 2016 lows on Friday. The August 2015 lows are now in play, and the bears will be looking for weak corporate earnings to keep their momentum.
Mid-Market Update: The market was behind the eight ball after midnight, as futures were down nearly 1%. The pre-market action worsened heading into this morning’s open, which was a classic sign that lower lows would come into play.
The Stop Limit of $1.20 triggered on the first half of the INTC February 30 puts.
Take profits and sell to close the first half of the GM February 28 puts at current levels.
Pre-Market Update: The bulls showed some moxie on Thursday after facing fresh 2016 lows in a make-or-break session. The bears came close to creating total chaos, but they failed to hold down the market’s lower levels of support. Today’s action will likely determine next week’s momentum, as the major averages remain mixed for the week.
The Stop Limit of $0.74 triggered on the GRMN February 30 puts.
Mid-Market Update: Futures were showing another bullish open this morning, and the subsequent action has played out much like it has for the past week. The opening rally faded again, but it happened much more quickly today than it has in prior sessions. Trading has been choppy since the open, but there are some important clues we need to watch into the closing bell.
Wednesday’s opening rally felt suspicious, and the first 30 minutes of trading action confirmed that feeling, as the market gave back all of its gains and then some. The freefall to lower lows was a bearish sign and, to make matters worse for the bulls, volatility spiked into the closing bell.
Pre-Market Update: Wednesday’s opening rally felt suspicious, and the first 30 minutes of trading action confirmed that feeling, as the market gave back all of its gains and then some. The freefall to lower lows was a bearish sign and, to make matters worse for the bulls, volatility spiked into the closing bell.
Buy to open the INTC February 30 puts (INTC160219P00030000, $0.60, up $0.18) at current levels.
Mid-Market Update: I mentioned previously that the financial stocks and earnings would be in focus this week. I previewed Citigroup (C)’s numbers ahead of its report on Friday in yesterday’s Pre-Market Update, and I’m still watching C for a possible bullish, bearish or strangle option trade ahead of Thursday’s close.
Pre-Market Update: The bulls battled the bears during Tuesday’s session, and both sides held their near-term support and resistance zones. Volatility pulled back a little, but it will likely heat up again as more fourth-quarter corporate earnings and economic news flow in over the rest of the week. A number of major earnings announcements from the financial sector, along with the retail sales report on Friday, should give us clues as to how the rest of January could play out.
Mid-Market Update: Futures were showing a strong start to this morning’s trading session, as volatility in overseas markets slowed. However, China’s stock market and currency are still trying to find their respective bottoms, and the nervousness of continued lower lows is keeping the slick-talking pros on the sideline.
Take profits and sell to close the MYL February 47.50 puts at current levels.
Pre-Market Update: The bulls rebounded on Monday to slow the bears’ momentum following another volatile day on Wall Street. The push to lower lows to start the week was another bearish sign, but the market showed a bit of resiliency throughout the session to keep the bullish hope alive. The weakness in tech and the small-caps remains a concern, but both held their key levels of support.
Buy to open the GRMN February 30 puts (GRMN160219P00030000, $0.70, up $0.07) at current levels.
Buy to open the GM February 28 puts (GM160219P00028000, $0.69, down $0.21) at current levels.
Mid-Market Update: Futures were negative overnight after taking the cue from overseas markets. China once again made headline news this morning, as the Shanghai Composite Index sank another 5% ahead of Wall Street’s open.
Buy to open the WMT February 60 puts (WMT160219P00060000, $0.73, down $0.05) at current levels.
Buy to open the NKE February 55 puts (NKE160219P00055000, $0.77, down $0.18) at current levels.
The Stop Limit of $1.10 triggered on the GRMN February 32.50 puts.
The Stop Limit of $1.15 triggered on the KSS February 45 puts.
For the past several years the Portfolio has mainly been bullish. At times, I have added bearish positions and this will likely be the year I return to this strategy in a much bigger way. Shorting stocks is like owning a stock long, except you want shares to go lower. You will have to have funds in your brokerage account to do these type of transactions but don’t let this deter you from making money in what could be a nasty 2016.
Pre-Market Update: The start of 2016 greeted traders with a bearish thunder, as the market suffered its most volatile week in the history of Wall Street. The selling pressure was extended into Friday’s closing bell, with the bears pushing fresh lows. Volatility also spiked, and it is approaching the late-summer highs from last year.
Buy to open the C February 45 puts (C160219P00045000, $1.10, up $0.02) at current levels.
Mid-Market Update: The bulls were banking on a stabilization of China’s market and a blowout jobs report this morning. They got both, as futures were forecasting a strong opening after China’s stock index gained 2% and nonfarm payrolls came in at 292,000.
The Stop Limit at $1.30 on the second half of the SNE February 24 puts has triggered.
Pre-Market Update: The bears broke through the market’s major support levels on Thursday to get the August and September lows back in play, and the bulls continued their retreat into the second half of trading to trigger lower lows. The market was literally saved by the closing bell, with a six-session slide on the Nasdaq in progress.
Buy to open the GRMN February 32.50 puts (GRMN160219P00032500, $0.72, up $0.24) at current levels.
Buy to open the MYL February 47.50 puts (MYL160219P00047500, $0.96, up $0.26) at current levels.
The Limit Order to close the first half of the EMR February 44 puts at $1.80 has triggered.
Set a Stop Limit at $1.30 on the second half of the EMR February 44 puts.
Mid-Market Update: Futures were forecasting another nasty open this morning in response to continued woes in China overnight. U.S. markets plunged 2% at the start of trading today following the shortest trading session in the history of China’s stock market.
The market pulled back on Wednesday, as the major indices stayed underwater throughout the session. The damage was minimal, but volatility has heightened heading into the final trading day of 2015.
Pre-Market Update: The bears pushed fresh lows into Wednesday’s close, and they are now on the brink of testing the August and September bottoms on continued weakness. The bulls need a counter-rally and some good news over the next few days, but Friday’s jobs report is looming.
Buy to open the EMR February 44 puts (EMR160219P00044000, $1.20, up $0.34) at current levels.
Mid-Market Update: The bulls were ambushed at the open this morning over worries that North Korea had successfully tested a hydrogen bomb. The reports haven’t been verified, but the escalation of geopolitical concerns was enough to rattle the markets.
Take profits and sell to close the first half of the SNE February 24 puts at current levels.
Set a Stop Limit at $0.90 on the second half of the SNE February 24 puts.
Pre-Market Update: The bulls battled back on Tuesday to get the market win, and they may have formed a possible short-term “double bottom” in the process. Although the bears failed to push lower lows compared to Monday’s action, the technical picture remains cloudy with a continued chance of higher volatility.
Mid-Market Update: With Alcoa (AA, $9.31, down $0.40) officially scheduled to announce its fourth-quarter numbers after the close next Monday, Jan. 11, the start of earnings season is just around the corner.
Pre-Market Update: Wall Street was greeted with a 2% loss to start the first trading session of 2016. The major indices took out their mid-December lows soon afterwards and finished at the bottoms of their ongoing three-month trading ranges.
Buy to open the DDD February 11 calls (DDD160219C00011000, $0.50, up $0.32) at current levels.
Mid-Market Update: Futures were showing major volatility ahead of the open this morning, as circuit breakers were triggered on China’s stock exchange following a 7% shellacking. The nastiness followed through here in the United States, and the major indices were punished at the start of trading today.
Buy to open the KSS February 45 puts (KSS160219P00045000, $1.10, down $0.05) at current levels.
Pre-Market Update: It’s not often that the last trading day of the year ends up holding the fate for some of the major indices, but it did in 2015. The bulls had a slight grip on the S&P 500 heading into last Thursday’s open, but that failed to hold following a nasty open.
The Monday/Friday closes continue to be mixed, and this often is the case during trading ranges. The Dow closed lower last Monday to snap a two-win streak, but it has closed lower on four of the past six Mondays. This is a slightly bearish sign.
Mid-Market Update: The last trading day of the year has historically been bearish for the Nasdaq, as the index has fallen nearly 80% of the time during this period over the past 15 years. This follows an incredible streak from the early 1970s up until 1999, during which time tech closed higher on the last trading session of the year for a remarkable 29-straight years.
The market pulled back on Wednesday, as the major indices stayed underwater throughout the session. The damage was minimal, but volatility has heightened heading into the final trading day of 2015.
Pre-Market Update: The market pulled back on Wednesday, as the major indices stayed underwater throughout the session. The damage was minimal, but volatility has heightened heading into the final trading day of 2015.
Mid-Market Update: I mentioned in Monday’s Pre-Market Update that this week would be crucial in determining how the market could play out in 2016. With the last trading day of the year approaching quickly, tomorrow will be a fascinating day to watch the action in the markets, reflect on 2015 and count down the year for America and Wall Street.
Pre-Market Update: The bulls cleared major resistance on Tuesday to reposition themselves for another possible test to all-time highs. The tops of the trading ranges are once again in play, but another stalled attempt would be a bearish development.
Buy Lattice Semiconductor (LSCC) common stock at current levels.
Mid-Market Update: The bulls are once again making a run to the top of the major indices’ trading ranges, which have been in play since mid-October. Today’s rally has been relatively broad-based, and the price of oil is rebounding as well.
Pre-Market Update: Santa has been missing for the past two sessions, and the bears took advantage of a nervous Wall Street on Monday to push the market’s near-term support levels. The technical picture worsened, but there were a couple of signals that showed that the bulls are still interested in pushing the tops of the current trading ranges.
Buy to open the SNE February 24 puts (SNE160219P00024000, $0.85, down $0.25) at current levels.
Buy Relypsa (RLYP) common stock at current levels.
For every 100 shares you buy, sell to open one contract of the RLYP January 30 call (RYLP160115C00030000, $2.15, down $0.30) at current levels.
Mid-Market Update: The financial stocks are leading today’s pullback following a weak open and another backtest to support. European stocks closed in the red for the day, but the major U.S. indices are now off of their lows.
Buy to open the GRMN January 38 calls (GRMN160115C00038000, $0.38, down $0.07) at current levels.
Buy to open the GRMN April 40 calls (GRMN160415C00040000, $0.80, down $0.05) at current levels.
Pre-Market Update: The market was relatively flat on Thursday, as the major indices ended mixed at the close of the shortened trading session. However, it was a big week for the bulls, as they held the lower ends of the trading ranges that have developed since October.
The nearly three-month battle will likely last into the New Year. The bears are keeping volatility elevated into the last trading week of the year and will be fighting hard to keep the upper end of the trading ranges in check. I recommend closing Discovery Laboratories (DSCO) at this morning’s open, and I have a new Stop Limit for Galena Biopharma (GALE).
The bulls took advantage of another strong rally on Wednesday to clear the indices’ major moving averages, and they are looking to end the week on an even higher note. The bears could end up hibernating into the end of the year, as today is the first “official” day of what may turn out to be a Santa Claus rally. However, volume has been light, and investors will need to decide if they are willing to hold stocks over the upcoming three-day weekend.
Pre-Market Update: The bulls took advantage of another strong rally on Wednesday to clear the indices’ major moving averages, and they are looking to end the week on an even higher note. The bears could end up hibernating into the end of the year, as today is the first “official” day of what may turn out to be a Santa Claus rally. However, volume has been light, and investors will need to decide if they are willing to hold stocks over the upcoming three-day weekend.
Mid-Market Update: The market has been in a strong uptrend throughout the day following better-than-expected economic news from a variety of sectors. Housing, energy, income and spending, and consumer confidence numbers impressed Wall Street and put traders in a buying mood.
Pre-Market Update: Despite some early-morning weakness, the bulls continued their rebound on Tuesday to clear near-term resistance. Volatility continues to fall, but it is still slightly elevated, which is keeping the bears alive. A continued rally today could lead to a run towards the market’s upper resistance levels and the major moving averages.
Buy to open the IRBT January 37 calls (IRBT160115C00037000, $0.65, up $0.10) at current levels.
Buy to open the IRBT March 40 calls (IRBT160318C00040000, $1.05, up $0.05) at current levels.
Mid-Market Update: The bulls are looking to get their second-straight win following the shaky trading that occurred during the first half of today’s session. After opening higher, the major indices pulled back for the first hour of trading this morning, but they are rebounding strongly as we head into the close.
Pre-Market Update: The market rebounded on Monday to push its near-term resistance levels despite some mid-day weakness. Fresh support and the bottoms of the October trading ranges held on the intraday pullback off of the highs, and volatility uncoiled slightly over the course of the session.
Mid-Market Update: Futures were strong throughout the night and into this morning’s open, which led to a nice gap higher, but the major indices are now off of their highs. The bulls need to show continued strength into the close today and hold the market’s near-term resistance levels.
PreMarket Update: The bulls tried to hold on to the weekly win, but the bears used the final hour of trading last Friday to get the upset. The technical damage was severe, as the indices closed below their major moving averages. The December lows are holding, for the most part, but they will be in play again if there is no rebound today and if the bottoms of the mid-October trading ranges fail to hold.
The bulls tried to hold on to the weekly win, but the bears used the final hour of trading last Friday to get the upset. The technical damage was severe, as the indices closed below their major moving averages. The December lows are holding, for the most part, but they will be in play again if there is no rebound today and if the bottoms of the mid-October trading ranges fail to hold.
Mid-Market Update: Believe it or not, fourth-quarter earnings season is less than a month away, and it will most likely have a major impact on how January’s market action unfolds. However, there are still a handful of companies that are scheduled to report earnings into the end of 2015. These companies are on different fiscal-year cycles, and their reports are worth watching, as they could offer clues as to what might be in store for next month.
The Stop Limit of $2.75 triggered on the IRBT January 34 calls.
Pre-Market Update: The bears ruined the Fed’s post-hike party by pushing the market’s fresh support levels on Thursday. The bulls held these levels into the close to keep the current trading range intact, but they need another rebound to keep Wall Street excited.
Mid-Market Update: The bulls tried to keep their momentum following yesterday’s push past resistance, but today’s opening pop has faded on a backtest to fresh support. The market is off of its lows for the session, and the close should offer important clues as to how Friday and next week might play out.
The Fed raised interest rates yesterday for the first time since June of 2006, and the bears ran for cover. The bulls pushed the market’s upper resistance levels and are once again eyeballing a run to all-time highs. There are only 10 trading days left in the year, and this Friday is “quadruple witching” day, which is when contracts for stock index futures, stock index options, stock options and single stock futures all expire. With volatility still slightly elevated, the bulls will need to keep their momentum if they want to finish the year in positive territory.
Pre-Market Update: The Fed raised interest rates yesterday for the first time since June of 2006, and the bears ran for cover. The bulls pushed the market’s upper resistance levels and are once again eyeballing a run to all-time highs. There are only 10 trading days left in the year, and this Friday is “quadruple witching” day, which is when contracts for stock index futures, stock index options, stock options and single stock futures all expire. With volatility still slightly elevated, the bulls will need to keep their momentum if they want to finish the year in positive territory.
Buy to open the GE January 31 calls (GE160115C00031000, $0.47, up $0.11) at current levels.
Buy to open the GE February 32 calls (GE160219C00032000, $0.40, up $0.05) at current levels.
Raise the Exit Target to from $2.20 to $3.00 on the IRBT January 34 calls.
Raise the Stop Limit order from $1.30 to $1.50 on the IRBT January 34 calls.
Mid-Market Update: Futures were strong throughout the night and into this morning’s open as the market prepared itself for today’s big decision on interest rates. The opening rally pushed up against resistance but has since faded, and the major indices are now flat heading into the final hours of trading.
Pre-Market Update: The bulls are right where they want to be ahead of today’s Federal Open Market Committee (FOMC) decision on interest rates. It remains to be seen if last week’s test to the bottom of October’s trading range will lead to a retest of the top of the range and a possible breakout, but the action is playing out just like we have planned following tax-loss-selling season.
Buy to open the HAL January 40 calls (HAL160115C00040000, $0.73, up $0.14) at current levels.
Buy to open the V January 82.50 calls (V160115C00082500, $0.55, up $0.25) at current levels.
Mid-Market Update: The market opened strong today, and the major indices are holding their gains as we head into the final hours of trading. It remains to be seen how today’s close will shape up, but it will be a slightly bullish sign if the indices can hold their key resistance levels.
Pre-Market Update: The market showed signs that it was trying to form a bottom on Monday despite the continued pullback in the small-caps and transports. After enduring the early selling pressure, the major indices gained strength into the close as volatility edged slightly lower. The bulls held support, while the bears struggled to hold resistance to keep the current trading ranges intact.
Mid-Market Update: Futures were erratic throughout the night and into this morning’s open, as they exhibited multiple swings of 0.5% or more. Overseas markets are taking a shellacking today, and the carry-over effect caused some first-half weakness in U.S. markets. The good news is that the bulls held the lows and have made a push into positive territory this afternoon.
December option expiration week is usually a bullish time period for the market. A positive close today would be helpful for a possible bullish rebound this week, but the bears will likely take advantage of the nervousness heading in Wednesday’s possible rate hike.
Pre-Market Update: Last week, the market suffered one of its worst runs in months, as the bears took advantage of tax-loss selling season, tumbling oil prices and a nervous Fed. The bulls tried to maintain the bottoms of the mid-October trading ranges, but they were stretched as selling pressure picked up steam into Friday’s close.
Mid-Market Update: Futures were erratic throughout the night, as they were positive ahead of the overseas market open. However, the futures market took a turn for the worse just before trading began on Wall Street this morning. Concerns about China, a continued slide in oil and the selloff in high-yield bonds have caused some panic-selling today, and the bottoms of the mid-October trading ranges are coming into play.
Sell to close the HRS December 85 calls at current levels.
Sell to close the QQQ December 117 calls at current levels.
Pre-Market Update: The bulls snapped their three-session losing streak to test resistance on Wednesday and, while the bears made a little noise on the open, they looked tired following their week-long binge. The market has a lot of ground to make up today or it could face a losing week inside of the continued trading range that has lasted since mid-October.
Buy to open the IRBT January 34 calls (IRBT160115C00034000, $1.10, up $0.40) at current levels.
Buy to open the CSCO January 27 calls (CSCO160115C00027000, $0.53, up $0.05) at current levels.
Mid-Market Update: Trading was a little choppy this morning before the bulls made a push past the market’s fresh resistance levels. The bears are trying to hold these levels as we head into the final hours of today’s action, but volatility seems tame today. This could lead to a positive or mildly lower close, as the recent trading ranges continue to play out.
The bears got their third-straight win on Wednesday, although the bulls were able to hold the market’s lower levels of support. The major moving averages were slightly stretched, but they are still in bullish setups despite the worries on Wall Street. However, the bulls need to make a stand today or the action could get a lot worse due to panic-selling.
Pre-Market Update: The bears got their third-straight win on Wednesday, although the bulls were able to hold the market’s lower levels of support. The major moving averages were slightly stretched, but they are still in bullish setups despite the worries on Wall Street. However, the bulls need to make a stand today or the action could get a lot worse due to panic-selling.
Mid-Market Update: The bulls got off to a good start this morning, as the market opened higher to push near-term resistance. However, the bears decided they weren’t through with their recent feast and have come back to the table for a third helping.
