Pre-Market Update: Tuesday’s action was choppy as traders returned from the three-day holiday weekend, but the bulls powered through the session to get the win. Tech led the action once again and closed at an all-time high. The small-caps slacked, but they showed resiliency by holding positive territory for much of the second half of trading.
Mid-Market Update: With September coming into focus more clearly, second-quarter earnings are now an afterthought, and Wall Street will begin to concentrate on October and third-quarter earnings. Of course, there will still be major companies reporting throughout the month, as their fiscal years started in different quarterly cycles.
Pre-Market Update: The market was choppy throughout last week as Wall Street anxiously awaited Friday’s nonfarm payrolls report. While near-term support and resistance was tested, the end-of-week action gave the bulls the weekly win, and it now appears that the odds of a Fed rate hike in September have lessened.
Mid-Market Update: This morning’s nonfarm payrolls report that showed 151,000 jobs added in August disappointed economists, but it thrilled Wall Street, as the chances for a September rate hike have now become slimmer. I will stay out of the rate debate because all I care about at the moment is the market action and higher highs given our current bullish positions.
Pre-Market Update: I mentioned that the market could remain slightly volatile this week ahead of this morning’s jobs report, and the bulls did a good job of holding lower lows on the stretch below near-term support yesterday before the second-half rebound back into positive territory. The mixed close was not hard to imagine, but how the market closes ahead of this three-day weekend is much more important.
Buy to open the TMUS October 48 calls (TMUS161021C00048000) for a maximum price of $1.10.
Take profits and sell to close the first half of the RMBS September 14 calls at current levels.
Mid-Market Update: The bulls were looking to start September off on a good note, as futures were forecasting a strong session throughout the night and into this morning’s open. However, the action weakened as futures turned south just ahead of the bell, and the action is now mixed heading into the second half of trading.
Buy to open the BID October 37 puts (BID161021P00037000) for a maximum price of $1.25.
Pre-Market Update: The bulls and bears split the month of August, as the Dow closed lower by 32 points, while the S&P 500 dipped 3 points. Meanwhile, the Nasdaq gained 51 points, and the Russell 2000 advanced 20 points. I mentioned throughout last month that the small-caps were playing catchup and would need to lead the next leg higher. Despite Wednesday’s pullback, the bulls are still in charge.
Mid-Market Update: The market traded in another tight range today, as each of the major indices did not stray far from yesterday’s closing levels. The bears got the upper hand from the start of trading this morning, and the Dow Jones, S&P 500 and Nasdaq all traded steadily lower until shortly after 2 p.m. EST.
Pre-Market Update: The bulls tried to rally the troops on Tuesday’s open, but the bears took over shortly afterwards and controlled the rest of the session. The late-day lows were blamed on weaker-than-expected economic figures and a rising dollar, according to the market pundits. However, the continued trading range is still the main theme of this market, although a possible breakout or breakdown could occur this week or next.
Mid-Market Update: The market traded in another tight range today, as each of the major indices did not stray far from yesterday’s closing levels. The bears got the upper hand from the start of trading this morning, and the Dow Jones, S&P 500 and Nasdaq all traded steadily lower until shortly after 2 p.m. EST.
Pre-Market Update: Monday’s action brought some much-needed relief, as the bulls recovered short-term support and pushed prior resistance levels. The VIX showed a little nervousness on the open, but it settled down and recovered its near-term support levels. I often say that one day doesn’t make a trend, but the rebound from last Friday’s late-day weakness was a good sign for the few of us that are still long the market.
Mid-Market Update: Futures were forecasting a lackluster open this morning, but the action felt bullish as I watched the pre-market noise. Today’s push towards the market’s upper resistance levels is only a stepping stone, as there are a number of newsworthy events scattered throughout the week.
Pre-Market Update: The bulls are trying to wind down August with a victory, and they are slightly ahead of the bears with three trading days left in the month. Tech and the small-caps led last week’s rally to record highs before the market pullback later in the week. However, the subsequent damage to the blue-chips and the S&P 500 has given the bears renewed hope, as they are showing losses for August and are growling heading into September.
Mid-Market Update: Futures were listless heading into this morning’s opening bell, as Wall Street was waiting on Fed Head Janet Yellen’s comments. Once again, she did her best to be “market correct” so that the zombies wouldn’t be blamed for rocking the bullish boat.
Pre-Market Update: The bears got their second-straight win on Thursday, although the bulls held near-term support. Volatility stayed elevated but held resistance. The financial sector traded higher ahead of this morning’s Fed comments and is holding slight gains for the week. Given the circumstances, today’s close should offer great clues as to how next week and the beginning of September might play out.
Mid-Market Update: The major indices have traded within a tight range on both sides of the ledger today following a weak open. I expect near-term support and resistance to hold, although tomorrow’s action and comments from Fed Chair Janet Yellen will likely decide whether the bulls or bears win the week.
Buy to open the NUE October 52.50 calls (NUE161021C00052500) for a maximum price of $0.75.
Take profits and sell to close the first half of the BAC September 15 calls at current levels.
Pre-Market Update: The bears made some noise on Wednesday, with tech and the small-caps leading the move lower. Volatility also tested upper resistance, as Wall Street is preparing for Janet Yellen’s upcoming statements on Friday.
Mid-Market Update: The bulls are pushing the market’s upper resistance levels, and new all-time highs are back in play. The Nasdaq touched a fresh all-time high earlier in the session, while the S&P 500 came within half of a point of making a new record high.
Pre-Market Update: The bulls pushed fresh record highs on Tuesday, but they gave back some of their gains into the close. The push past upper resistance was led by the small-caps, while the financial stocks also showed strength.
Mid-Market Update: The bulls are pushing the market’s upper resistance levels, and new all-time highs are back in play. The Nasdaq touched a fresh all-time high earlier in the session, while the S&P 500 came within half of a point of making a new record high.
Buy to open the VUZI October 7.50 calls (VUZI161021C00007500) for a maximum price of $1.05.
Pre-Market Update: The battle between the bulls and bears resulted in a Monday draw, with the major indices trading within another tight intraday range. This type of action could continue into Friday, but Fed Chair Janet Yellen’s comments on interest rates and the current state of the economy could lead to a possible breakout or breakdown.
Mid-Market Update: The bulls are trying to win their second-straight Monday session despite some of the weakness the market experienced at the open today. The bears were slightly aggressive at the start of trading, but they ran into trouble with near-term support before the bulls battled back.
Buy to open the WATT November 17.50 calls (WATT161118C00017500) for a maximum price of $1.45.
Pre-Market Update: The bulls and bears split the wins last week, as the Dow and the S&P 500 struggled to hold their slight gains going into Friday’s session. Although the Nasdaq and Russell 2000 finished lower on Friday, they both ended the week slightly higher.
Mid-Market Update: Today’s action has favored the bears, but the bulls are keeping things interesting as they try to hold onto their gains for the week.
Pre-Market Update: The agonizing back-and-forth action continued this week, with the major indices making minor gains on Thursday. The weekly win is still up for grabs, as the bulls are only ahead slightly, but a Friday win would seal the deal.
Mid-Market Update: The regular August monthly options expire at the close of trading this Friday, and today’s flat action could be in anticipation of the event. Historically, the market has fared well in the time period around August expiration, and the day has been bullish in recent years.
Pre-Market Update: The market traded lower for the majority of Wednesday’s session leading into the latest Fed news. The minutes from July showed that there could be a rate hike in September or possibly December, but no action was taken yesterday. In the end, the rebound off of the lows and into positive territory gave the bulls the win.
Buy to open the WATT November 15 calls (WATT161118C00015000) for a maximum price of $2.00.
Mid-Market Update: With the major indices pulling back to support, the bears are looking to get back-to-back wins heading into the second half of today’s session. Volatility has also stayed elevated, but the bulls are trying to hold upper resistance.
Pre-Market Update: The back-and-forth action continued on Tuesday, as the bears held the bulls back from reaching higher record highs. The damage was minimal, but it raised some concern, as the VIX jumped 7%.
Mid-Market Update: Accounting scandals never make for good headlines for a publicly traded company or its shareholders, as both sides suffer the consequences. This type of news hits the tape every now and then, but an accounting probe on a momentum stock that is heading into an earnings announcement can compound the situation.
Pre-Market Update: The bulls finally had a strong Monday showing, as the blue-chips ended a four-week Monday losing streak with yesterday’s win. The other indices also performed well, and record highs and a major move above resistance were achieved. The VIX spiked a little on the open, but it was nothing serious, as the momentum continues to push the market higher.
Mid-Market Update: Semiconductor stocks, along with the overall market, were taken to the woodshed in June and bottomed following the Brexit news. Specifically, shares of Cypress Semiconductor (CY, $11.30, up $0.30) fell below their 50-day moving average to test $9 and the 200-day moving average a couple of months ago.
Sell to close the VUZI September 10 calls at current levels.
Pre-Market Update: The market finished mostly higher last week, but the small-caps failed to pull their weight. The gains were slight, but they should keep the bullish momentum going. This week could produce much of the same push-and-pull action, and earnings will likely produce the biggest winners and losers on an individual basis. Overall, the bulls are trying to rally other sectors of the market, as retail stocks are starting to break out, and they will remain in focus this week.
Mid-Market Update: The market has been slightly weak for most of today’s session, but the bulls are trying to hold their gains for the week. The Dow went into Monday’s open at 18,543 and has traded to a low of 18,568 today, while the S&P 500 closed last Friday at 2,182 and has tested a low of 2,180. The Nasdaq and Russell came into the week at 5,221 and 1,231, respectively, and both indices have traded below these levels today.
Pre-Market Update: The bulls rebounded to push record highs on Thursday while clearing and holding key resistance levels. The major indices stayed strong all session long, and the small-caps are now the only group left waiting to join the party at all-time highs.
Mid-Market Update: Futures were forecasting a nice pop ahead of today’s opening bell, and the gains have held heading into the close of trading.
Pre-Market Update: The bears kept Wall Street confused on Wednesday, as the market traded within another tight range during the backtest to fresh support. The bulls tried to push higher highs and blue-sky territory, but they ran out of gas following the opening pop to fresh resistance.
Mid-Market Update: One of my favorite retailers to play options on is Kohl’s (KSS, $39.22, up $1.52) and, with the company scheduled to report earnings Thursday morning, there may be an opportunity to go long or short. Analysts are expecting the company to earn $1.04 a share on revenue of $4.16 billion. The high estimate is pegged at $1.12 a share, with a lowball number at $0.94 a share. This could mean a headline beat of $0.08 or an earnings miss of $0.10 a share.
Pre-Market Update: Add the Nasdaq to the club, as it was the latest index to tap record all-time highs in recent weeks. Although there was a little late-day weakness on Tuesday, the bulls showed some strength to get the win. The bears are looking for an opening, but they may have to wait for the small-caps to clear 1,300 before we can start looking for a possible near-term market top.
Mid-Market Update: One company that is scheduled to report earnings this week is of special interest to us, as we are long call options on Viavi Solutions (VIAV, $7.34, up $0.09). VIAV’s numbers are due out after Thursday’s closing bell, and analysts are looking for a profit of $0.09 a share on revenue north of $220 million.
Pre-Market Update: The market pulled back on Monday despite some opening strength that allowed the S&P 500 to tap another all-time intraday high. The pullback in the Dow wasn’t too concerning, as a higher high than Friday was made. However, it was the third-straight Monday loss for the blue-chips that helped stall the rally from last week.
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.
