Mid-Market Update: The major indices have stayed range-bound throughout September, but the backend of the month’s action will likely give the bears the monthly win. Today’s action is a different story, however, as the bulls are rallying off of the bottoms of those ranges. Although they were stretched during the pullback at the start of the week, significant support levels held, which was a slightly bullish sign.
Pre-Market Update: Trading was choppy on Tuesday, as the major indices stayed in a relatively tight range. The bears had some success testing support on the open, but the bulls made a run at fresh resistance before ending the session split.
Mid-Market Update: Next week is the official start of third-quarter earnings season, but there are a few noteworthy companies with offbeat fiscal years that are scheduled to report their numbers this week instead. One of them is spice-maker McCormick & Company (MKC, $80.68, down $0.82), which is scheduled to announce earnings on Thursday, Oct. 1, before the market opens.
Pre-Market Update: The bears made a run at the August lows on Monday, with tech and the small-caps leading the decline. The bulls are running out of time to save September from the bears, and they could be facing a rocky October as well, as volatility has picked back up.
Buy to open the SBUX November 50 puts (SBUX151120P00050000, $0.90, up $0.43) at current levels.
Mid-Market Update: I have talked previously about the new trading range that has been forming over the past few weeks following the late-August selloff. With today’s rebound, it is possible that the market will stay range-bound going into earnings season. This means that next week could stay choppy until we start to hear from corporate America the following week.
The Dow ended August at 16,528 and needs 214 points to finish September in the green. The technical picture remains weak for the blue-chips as all of the major moving averages are sloping lower.
Pre-Market Update: The bears got the win last week despite the bulls’ best attempts to even the score on Friday. The weakness in the small-caps from the start of the session was a major concern, as was the late-day fade that dragged tech closer to a breakdown.
The Stop Limit of $2.00 triggered on Limelight Networks (LLNW).
Mid-Market Update: I have talked previously about the new trading range that has been forming over the past few weeks following the late-August selloff. With today’s rebound, it is possible that the market will stay range-bound going into earnings season. This means that next week could stay choppy until we start to hear from corporate America the following week.
Pre-Market Update: The bears cracked another layer of support on Thursday, and they now have the bulls backpedaling. A knockout punch could be coming soon if the market stays wobbly into the weekend. The bulls rebounded off of the lows yesterday, but the action in the VIX turned bearish, with fear starting to rise on continued weakness.
Mid-Market Update: It’s never a good sign when a company’s stock is testing 52-week lows ahead of its earnings announcement. Shares of Pier 1 (PIR, $8.81, down $0.08) have tested a fresh 52-week low of $8.52 today, and the technical picture is a mess.
Buy to open the XLF November 22 puts (XLF151120P00022000, $0.66, up $0.15) at current levels.
Wednesday’s back-and-forth battle was mainly controlled by the bears, as they continued their push towards the lower levels of support. The bulls battled back to keep the losses respectable, but they struggled to regain resistance.
Pre-Market Update: Wednesday’s back-and-forth battle was mainly controlled by the bears, as they continued their push towards the lower levels of support. The bulls battled back to keep the losses respectable, but they struggled to regain resistance.
Mid-Market Update: The bears are looking to do further damage and are challenging the second waves of support again today. I wrote previously that the two main clues we needed to watch for this week were the financials and transports, both of which are struggling.
Pre-Market Update: The bears controlled Tuesday’s session from start to finish following a break below the first waves of support. The bulls rebounded off of the lows late in the day, but the biotech bloodbath was too much to overcome. Recent price gouging on an AIDs drug that zoomed from $13.50 to $750 a pill caused a firestorm, and a mere tweet by a presidential hopeful slammed the sector.
Buy to open the SNE October 24 puts (SNE151016P00024000, $0.65, up $0.35) at current levels.
Mid-Market Update: Shares of Diamond Foods (DMND, $30.45, down $0.89) are down 3% and have fallen prey to today’s market pullback. The pullback broke the stock’s key support at the 50- and 100-day moving averages, and it is approaching $30-$29.50 and the 200-day moving average quickly.
Pre-Market Update: The bears were looking to wreak havoc on Monday to start the week, but the bulls held short-term support while making a run at the first waves of resistance once again. With just seven trading sessions left in September, the monthly win is still up for grabs, as both sides have taken a piece of the market pie.
Mid-Market Update: Futures were showing a strong start ahead of this morning’s opening bell, indicating the possibility that the bulls might push the first layers of resistance. Although higher levels were tested during the first half of today’s action, the bears have now joined the party, and the market is mixed in afternoon trading.
There are two things that worry me ahead of October. One, the week after September options expiration is historically bearish. Two, another government shutdown is looming if the zombies in D.C. can’t come together by month end about a way to keep the government funded.
Pre-Market Update: The bulls lost another Monday session at the start of last week, but the market rebounded ahead of the Fed meeting to test the upper layers of resistance heading into Wednesday. The action looked bullish heading into the zombies’ decision on Thursday, but the market ended mixed as the Fed left interest rates unchanged.
Mid-Market Update: Futures were slightly higher after midnight, but they took a turn for the worse ahead of this morning’s open. I mentioned that September option expiration day has been bullish over the past decade, but the post-Fed market reaction is favoring the bears.
Pre-Market Update: The Fed disappointed some investors and pleased others on Thursday, as it left interest rates unchanged. The decision was disappointing to me because it leaves the debate open for the rest of this year and possibly into 2016.
Mid-Market Update: It has been nearly a decade since the United States stock market has felt the impact of an interest-rate hike. Within an hour or so, we will know if the Fed plans to keep everyone waiting for interest rates to rise or if they are still on standby.
The bears showed up late in the afternoon on Wednesday to push the major indices lower and get the market win. The bulls held the backup support levels that had served as prior resistance, but the failure to keep the momentum from Tuesday’s rally is concerning.
Pre-Market Update: The bulls came within spitting distance of clearing the second layers of resistance on Wednesday ahead of today’s Fed decision on interest rates. The action continues to look bullish, and I’m hoping for the best of both worlds — a higher close today and a rise in interest rates. However, I realize most of the suits-and-ties are betting on a market pullback no matter what the Fed decides.
Buy to open the GLW November 19 calls (GLW151120C00019000, $0.60, up $0.11) at current levels.
Buy Planet Fitness (PLNT) common stock at current levels.
Mid-Market Update: The market has traded in a tight, choppy range today ahead of tomorrow’s Fed decision on interest rates. The consensus is that the zombies will raise rates by either a quarter or an eighth of a point, and Wall Street is hoping that Janet Yellen says all the right things. She hasn’t spoken publicly in two months, so tomorrow should be interesting — to say the least.
Buy to open the CSCO November 27 calls (CSCO151120C00027000, $0.62, down $0.01) at current levels.
Pre-Market Update: The market regained some momentum on Tuesday following a rally that cleared the first layers of resistance. The action was steady throughout the session and into the closing bell despite a somewhat sluggish start. These were bullish signs, and they put the bears on defense. However, there are still multiple layers of resistance to clear before we can say that the market is healthy again.
Mid-Market Update: Although the Fed meeting on Thursday will garner the most attention, there are a few notable companies that will be reporting earnings this week. Third-quarter earnings season officially starts in early October, but companies with different fiscal years will be reporting before then as well.
Pre-Market Update: The bears won their third-straight Monday session, as they slowed the bulls’ momentum from last week. The losses held at support, with the market trading in a tighter range ahead of Thursday’s Fed announcement on interest rates.
Mid-Market Update: I was looking for continued momentum today following last week’s rebound by the bulls. Although the Dow snapped its Friday losing streak last week, the blue-chips continue to struggle in Monday sessions. Perhaps the action will change by the close, but it would be concerning if the market finishes in the red today.
Buy to open the PYPL January (2016) 40 calls (PYPL160115C00040000, $1.05, up $0.05) at current levels.
Pre-Market Update: The bulls got off to a strong start following the holiday weekend and pushed the first waves of resistance last Tuesday. Wednesday’s early-morning rally faded at the second levels of resistance before a late-day attack by the bears got previous support back in play.
I have been covering my feelings on the Fed all year long and obviously, they will be the focal point of this week’s market action. It is possible the market stays in a tight range until the news on interest rates is announced. I believe the Fed has to raise rates a quarter point to save their credibility. If not, the market might take it as a negative.
Mid-Market Update: The Dow has fallen for three-straight days and in seven of the past eight Friday sessions. A win today might be a slightly bullish sign for the market heading into next week, and today’s close and the action in the VIX will be important as well.
Pre-Market Update: It is still too early to say if the bulls are building a floor of support, but Thursday’s action was a step in the right direction. The bears made an attempt to push lower lows late in the afternoon, but the market held its gains during the final hour of trading.
Mid-Market Update: Shares of Kroger (KR, $35.26, up $0.86) are making a run at their 200-day moving average ahead of the company’s earnings announcement tomorrow morning.
The bears showed up late in the afternoon on Wednesday to push the major indices lower and get the market win. The bulls held the backup support levels that had served as prior resistance, but the failure to keep the momentum from Tuesday’s rally is concerning.
Pre-Market Update: The bears showed up late in the afternoon on Wednesday to push the major indices lower and get the market win. The bulls held the backup support levels that had served as prior resistance, but the failure to keep the momentum from Tuesday’s rally is concerning.
The Stop Limit of $3.25 has triggered on Ohr Pharmaceutical (OHRP)
Mid-Market Update: The bulls made a run past the next layers of resistance this morning, but the bears have battled back, and the broad indices are now virtually flat on the day. The opening push looked promising, but a lower close today could keep the recent, volatile trading range in play.
Raise the Stop Target on Ohr Pharmaceutical (OHRP) from $1.00 to $3.25 and make it a Stop Limit.
Pre-Market Update: The bulls were ready to run following the long three-day weekend, as the market powered past several layers of resistance. The bears lost their grip on the VIX, but it’s too early to say if Tuesday’s rebound was the real deal.
Mid-Market Update: I know I covered a lot of information in this morning’s Pre-Market Update, but there is more to come as we get ready for the rest of September’s action. The charts and upside/downside targets for the major indices should prepare us to capture profits on the next major trend, but the gap-ups and gap-downs are really hard to trade when it comes to getting into the right option.
August was a nasty month for the market, and the first week of September wasn’t much better. The bears won last month, as the major indices registered losses of 6%-7%. Last week’s losses averaged upwards of 3% across the board.
Pre-Market Update: August was a nasty month for the market, and the first week of September wasn’t much better. The bears won last month, as the major indices registered losses of 6%-7%. Last week’s losses averaged upwards of 3% across the board.
Mid-Market Update: I mentioned in yesterday’s Mid-Market Update that I would be profiling a number of directional and potential strangle option trades, so here is one I’m watching that I might take action on next week.
Pre-Market Update: The bulls did their best to get a clean sweep on Thursday and, while the broader market finished higher, tech and the small-caps gave back their gains. The technical clues were mixed as well, as both are showing that a breakout or breakdown will likely ensue in the coming weeks.
Mid-Market Update: Given the power of strangle option trades, and with the current volatility that may or may not settle down, I have been profiling a number of these type of trades in recent weeks.
The bulls showed some moxie on Wednesday and got Wall Street excited again following a final-hour rally to fresh session highs. The impressive rally is still suspicious, but crucial pivot points are in play, and the rest of the week should end with either a bang or a bust.
Pre-Market Update: The bulls showed some moxie on Wednesday and got Wall Street excited again following a final-hour rally to fresh session highs. The impressive rally is still suspicious, but crucial pivot points are in play, and the rest of the week should end with either a bang or a bust.
Mid-Market Update: Futures were up ahead of this morning’s open as overseas markets rebounded somewhat, setting the stage for the bulls here in the United States. While the first-half bounce was a given, today’s close will be more important.
Pre-Market Update: The bears are feeling confident again as China’s economic woes worsen, while oil’s 8% drop to $45/barrel continues to whipsaw flip-flopping traders. The indexes finished below the first waves of support yesterday, and a break below last week’s lows could cause another round of panic selling.
Mid-Market Update: The nasty numbers for the month of August favored the bears, as the major averages sank 6%-7% on average, and September isn’t starting off much better.
Use a limit order and buy to open the MYL October 42.50 puts (MYL151016P00042500, $0.70, up $0.10) for a maximum price of $0.90.
Use a limit order to buy to open the KKD November 16 puts (KKD151120P00016000, $0.90, up $0.05) for a maximum price of $1.05.
Pre-Market Update: The bears were aggressive at Monday’s open, but the bulls fought back before losing the first out of five sessions this week. The small-caps showed strength, but they slipped below key support by the closing bell.
Mid-Market Update: The bears are trying to end the month with a bang, and the party started Sunday night while futures were showing a nasty open. However, the bulls held steady during the opening onslaught and managed to briefly push the small-caps into positive territory heading into afternoon trading.
Pre-Market Update: Panic selling hit Wall Street at the start of last week, as the major averages tested their October 2014 lows. The Dow breached its October low before holding crucial support into Monday’s close, while the S&P 500, Nasdaq and Russell 2000 all held their respective October 2014 lows.
The S&P 500 was up 18 points for the week. I talked about the index slipping into a death cross last Thursday morning. By Friday’s close, it was official as the 50-day moving average settled a point below its 200-day moving average. It might be hard to correct this setup as both moving averages are curling lower with the 50-day moving average picking up steam.
Mid-Market Update: It is too early to tell if the V-shaped recovery off of Monday’s lows will continue into next week or if the current rally is a bear trap, but today’s action is slightly bullish.
Pre-Market Update: The market rebounded for the second-straight session following comments from one Federal Reserve official. New York Fed President William Dudley excited Wall Street after he said that the odds for a September rate increase seemed less compelling now than a few weeks ago. He added that the threat posed to the U.S. economy by the recent market turmoil was a concern.
Mid-Market Update: Shares of Smith & Wesson Holding Corp. (SWHC, $16.21, up $0.26) will be on the move in extended trading today following the company’s earnings release after the close.
The bulls showed Wall Street why they can’t be given up on following Wednesday’s strong gains. Instead of folding in the final hour of trading, the market got stronger and enjoyed its best day in four years.
Pre-Market Update: The bulls showed Wall Street why they can’t be given up on following Wednesday’s strong gains. Instead of folding in the final hour of trading, the market got stronger and enjoyed its best day in four years.
Mid-Market Update: The bulls are trying to clear resistance this afternoon following another strong open, but, again, the big concern is if the gains will hold into the close. Tuesday’s pullback off of the highs and the nasty finish served as additional reminders that we are still in a very fragile market environment.
Pre-Market Update: Wall Street was thanking China for cutting its interest rates again for the fifth time since November, as the talking heads stated this was the reason that the market was trading higher for much of Tuesday’s session.
Mid-Market Update: Futures were showing a huge gap-up this morning following Monday’s carnage, but there were concerns about whether or not the gains would hold. The first 30 minutes of trading were important, as the bulls showed strength and some follow-through. Although it’s still early in the day and there is another half of trading to go, the action looks bullish so far.
Pre-Market Update: Monday’s action was a test of will and nerves, as bullish and bearish traders took positions in a very volatile market. It is too early to say which side will be right, but the action has been both breathtaking and exciting. The wild price swings will likely be here to stay all week, so it is important that we remain patient until the dust settles.
Mid-Market Update: Futures were showing panic-selling declines on the open this morning, as investors from around the globe headed for the exits. True to form, the major indexes plummeted at the start of trading but have rebounded this afternoon as bullish investors tried to pick a bottom and look for good deals.
I have been one of the bulls biggest cheerleaders for the past three years and it’s why I haven’t bailed on them this year. However, I love making money with the bears, as my track record shows, so do not panic if the next few months get even crazier.
Pre-Market Update: The bulls got their second-straight Monday win to start last week, despite another attempt by the bears to derail an end-of-summer rally.
Mid-Market Update: I often say that the bulls like to take the stairs higher, while the bears prefer to take the elevator lower. As the market enters correction territory, this week’s elevator drops show how fast and furious the bears can be.
Pre-Market Update: The bears enjoyed their best session of the year on Thursday, as the market’s losses left Wall Street speechless. The bulls are looking to end the three-day losing streak, and they have their sights set on prior support. However, another loss today will likely lead to continued weakness into next week.
Mid-Market Update: Futures were pointing to a nasty open and a test to the August lows this morning, and the big concern was whether or not support would hold. So far it has, and today’s close will be one of the more important tells in recent weeks.
The market remained rocky on Wednesday as Wall Street fretted over the latest Fed minutes. Although the chances are good that a rate hike will come in September, according to the slick-talking pros, the dovish minutes offered hope that the zombies might wait until later in the year before making their move.
Pre-Market Update: The market remained rocky on Wednesday as Wall Street fretted over the latest Fed minutes. Although the chances are good that a rate hike will come in September, according to the slick-talking pros, the dovish minutes offered hope that the zombies might wait until later in the year before making their move.
Buy to open the IWM September 123 calls (IWM150918C00123000, $0.78, down $0.35) at current levels.
Buy to open the KKD November 17 puts (KKD151120P00017000, $0.95, up $0.10) at current levels.
Mid-Market Update: Shares of Dot Hill Systems (HILL, $9.68, up $4.50) are surging 87% today following the news that the company will be acquired by Seagate Technology (STX, $50.50, down $1.55).
The Stop Limit of $1.00 triggered on the second half of the KBH October 16 calls.
Take profits and sell to close Dot Hill Systems (HILL) common stock at current levels.
Set a Limit Order to sell to close HILL common stock at $9.75.
Pre-Market Update: The bears ended their two-session slide following a frustrating start by the bulls on Tuesday. Although there was a slight burst into positive territory, Tech and the small-caps were weak, and the VIX finished higher for the second-straight day.
Mid-Market Update: It was crucial that fresh support held on this morning’s backtest, as futures were showing some early-morning weakness. Although the indexes are still in the red, I’m looking for the recent market pattern of afternoon strength to play out again today.
Pre-Market Update: Monday’s action was picture-perfect, as the early morning weakness flushed out bullish traders as the market turned bearish. I mentioned that a second-half rebound and a higher Monday close on the Dow would be bullish clues for a continued rally. The market obliged, but trading is still treacherous.
Take profits and sell to close the first half of the KBH October 16 calls at current levels.
Mid-Market Update: Futures were slightly lower after midnight and going into the opening of markets overseas, indicating that there would be a rather smooth transition here in the United States. However, an hour ahead of the open, weak economic news put the bulls behind the eight ball.
Buy to open the BAC October 18 calls (BAC151016C00018000, $0.45, down $0.03) at current levels.
Buy to open Rave Restaurant Group (RAVE) common stock at current levels.
Wall Street was thrown a curveball last week following China’s decision to devalue its currency. While it was a surprise to the suits-and-ties, it shouldn’t have been when it comes to the country’s politics.
Pre-Market Update: Wall Street was thrown a curveball last week following China’s decision to devalue its currency. While it was a surprise to the suits-and-ties, it shouldn’t have been when it comes to the country’s politics.
Buy to open the IWM September 123 WEEKLY calls (IWM150904C00123000, $0.52, up $0.07) at current levels.
Mid-Market Update: I profiled El Pollo Loco Holdings (LOCO, $14.76, down $3.60) in the Aug. 12 Mid-Market Update, and shares are down 20% today following a mixed earnings report that was released after Thursday’s close. The company beat expectations by a penny, but revenue was light, and the company lowered guidance for the current quarter once again.
Pre-Market Update: The bulls made a run at resistance on Thursday following a slow and sluggish start to the day. Trading was tight and choppy throughout the session, but a late-day fade gave the bears the overall win.
Mid-Market Update: Shares of J. C. Penney (JCP, $8.12, down $0.15) will be in focus on Friday morning, as the company is expected to report earnings ahead of the open. Wall Street is expecting a loss of $0.48 a share on revenue of $2.86 billion.
Fear swept through Wall Street on Wednesday as the bears made their most significant move of the year. The technical damage caused from yesterday’s pullback was severe, but the bounce off of the lows might be telling another story.
