Momentum Trades

Momentum Options

New Trades (ETFC, QQQ, RMBS, TIVO)

Buy to open the ETFC January (2017) 35 calls (ETFC170120C00035000) for a maximum price of $1.15.

Buy to open the QQQ January (2017) 122 calls (QQQ170120C00122000) for a maximum price of $1.10.

Buy to open the RMBS February (2017) 14 calls (RMBS170217C00014000) for a maximum price of $0.70.

Buy to open the TIVO January (2017) 22.50 calls (TIVO170120C00022500) for a maximum price of $0.65.

Daily Update, Momentum Options

Tech Taps Another Record High

Pre-Market Update: The bulls returned to their winning ways on Tuesday following some opening weakness, as the market finished mostly higher. The small-caps slacked, but tech tapped another all-time intraday high. Today’s action could see wider swings as a result of OPEC’s decision and the subsequent reaction in oil prices to a possible cut in production.

Daily Update, Momentum Options

Near-Term Support Holds

Pre-Market Update: The bears made a brief appearance on Monday following three weeks of hibernation, but they did little damage in their efforts to slow the momentum. The small-caps had their 15-session win streak halted, although the pullback held rising support and last Monday’s levels. The close off of the lows was slightly bullish, but volatility rose to a level that needs to be respected.

Daily Update, Momentum Options

Bulls Continue Record Run; New Trades (CBI, TMUS)

Pre-Market Update: The market continued its traditional Thanksgiving rally this week, as the major indices pushed record highs again on Wednesday. Tech was a little slack, but the small-caps extended their winning streak to 14-straight. Today’s half-session is expected to be flat, as volume will be light and much of Wall Street will be taking extended vacations.

Daily Update, Momentum Options

Dow Clears and Holds 19,000

Pre-Market Update: The market enjoyed another banner day on Tuesday, as all of the major indices continued their assault on all-time highs. With my fluff targets now in play, all we have to do is try and relax during the Thanksgiving action. Trading will likely be light today ahead of the Thanksgiving holiday on Thursday, but we will still be watching for warning signs of a market top while we nibble on bullish positions.

Daily Update, Momentum Options

Cisco Systems (CSCO) Falls Below $30

Mid-Market Update: I mentioned in yesterday’s Mid-Market Update that the king of the penny-beat, Cisco Systems (CSCO, $29.81, down $1.76), was reporting earnings, and it had a slight surprise for Wall Street on Wednesday after the close. The company actually beat estimates by $0.02, and revenue was higher as well. The problem was that the current forecast came in $0.02-$0.04 below expectations.

Daily Update, Momentum Options

Financial Stocks Take a Breather

Pre-Market Update: The talking heads were finally patting themselves on the back yesterday, as they blamed Wednesday’s “pullback” on a market that had gone too high, too fast. However, that theory was broken by last Friday’s close. In reality, the market was split and closed mixed, with tech continuing its rebound. The financial stocks held the bulls from what would likely have been clean sweep, but momentum is still on their side.

Daily Update, Momentum Options

VIX Closes Below 13.50; New Trade (TSEM)

Pre-Market Update: This week’s morning choppiness continued on Tuesday, and the market moved within a narrower trading range for much of the session. However, momentum picked up in the afternoon, led by the Nasdaq, and the Dow extended its win streak to seven-straight sessions. Higher highs continue to appear to be on the horizon, and volatility is also relaxing.

Daily Update, Momentum Options

Shake Shack (SHAK) Shares Looking Shaky

Mid-Market Update: Shares of Shake Shack (SHAK, $32.75, up $0.45) will be on the move in extended trading on Wednesday, as the company is scheduled to announce earnings after the closing bell. Shares recently tested a multi-month low of $30.90 but held the 52-week low of $30 that was set in January of this year. Below is a two-year chart that shows the IPO debut and the subsequent run towards $100 afterwards.

Daily Update, Momentum Options

Shorts Cover as Market Surges

Mid-Market Update: Futures were showing a strong open this morning following the news over the weekend that the FBI would not bring any charges against presidential candidate Hillary Clinton regarding her email debacle. While I often say that market pundits like to attach a headline when the market goes higher or lower, my notes from the weekend focused on the market’s oversold condition and a possible rebound rally this week.

Daily Update, Momentum Options

Bears Keep Momentum

Pre-Market Update: The bears pushed lower lows to end last month, and November also started off weak, with a break below the October lows ahead of the Fed news mid-week. The zombies’ decision to leave interest rates unchanged was certainly not a shocker from a hand that has been read worse than a fish at a poker table filled with sharks.

Daily Update, Momentum Options

VIX Clears 22

Pre-Market Update: The nervousness on Wall Street went up a notch following Thursday’s continued pullback and ahead of this morning’s jobs report. Good or bad, the lower lows came on continued volatility, as another key level of resistance was cleared. The upcoming weekend and presidential election will make it hard for investors to stay long, and buying on weakness seems to have gone out of style.

Daily Update, Momentum Options

Weakness Ahead of Fed Meeting

Mid-Market Update: The market has traded on both sides of the ledger during the first half of the action and ahead of the Fed’s two-day meeting that starts today. The zombies will be sleeping through the get-together, however, as the upcoming presidential election is just a week away. There is no scheduled press conference afterwards, so risk may be limited.

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