Pre-Market Update: Wall Street tried to remain calm as they preached caution during Monday’s pullback. However, I’d like to see how the suits-and-ties react if the selling pressure continues today and for the rest of the week.
Mid-Market Update: Futures were showing a nasty open this morning as Wall Street prepared for the fallout from this weekend’s negotiations regarding Greece. While it is sometimes hard to see the method to my madness, I have been trying to prepare us for a late-June swoon.
The market is mixed for June, with the Dow down 64 points and the S&P off by a 6-pack. Tech is up 10 points, and the small-caps are higher by 33 points, or nearly 3%. There are two trading days left in the month, and there could be a 1%-3% move lower (or higher) by Thursday for these indices.
Pre-Market Update: The bears made some noise last week as the circus in Greece continued. Like all good clowns, they will eventually leave town, but the clock is ticking as the country’s debt debacle is once again coming down to the wire.
Mid-Market Update: The bears are on track for the weekly (and possibly monthly) win, as they continue their attack on near-term support levels. Fridays have been a train wreck for the Dow recently, as it has fallen in all of the past five Friday sessions, but Nike (NKE, $109.64, up $4.42) is trying to help the blue-chips end that losing streak today.
Pre-Market Update: The market pulled back for a second-straight session on Thursday, as traders remained worried about the latest rumors of a Greece deal that has been in flux constantly. The clock is ticking on the country’s fate concerning its debt issues, and the outcome will likely be decided between now and early next week.
Take profits and sell to close the first half of the X July 21 puts at current levels.
Set a Stop Limit at $0.25 on the second half of the X July 21 puts.
Mid-Market Update: Gold came into the week clinging to the $1,200 level, but it is down a few bucks again today to $1,175 an ounce. I mentioned that there would be risk to $1,170-$1,150 if $1,200-$1,190 failed to hold. These levels were tripped to start the week, with gold testing a low of $1,168 on Wednesday.
Pre-Market Update: The bears returned on Wednesday and held down the market on the open, as headlines about Greece ignited new fears of a possible default. These types of helter-skelter market moves will likely continue for the rest of the week and into next until Greece or the European zombies pull the country out of its current debt misery.
Mid-Market Update: I’d like to expand on a stock I brought your attention to last week, provide more information about its history and talk about the rebound off of its recent lows. Options are unavailable to on RAVE at this time, which is why we haven’t been trading the name.
Pre-Market Update: The bulls extended their winning streak another day after tapping fresh all-time highs on Tuesday. The pullback off of the peaks held fresh support, and the VIX closed below 12.50.
Mid-Market Update: Futures were showing another strong open this morning following news that Greece had offered a new debt proposal to its creditors. Although the details are sketchy, most of those involved seem to believe that a final agreement could come this week.
Pre-Market Update: The bulls ended a two-session Monday skid to push fresh all-time highs on the Nasdaq and Russell 2000. The Dow and S&P 500 made solid gains as well and are back on track to test their record highs this week on continued momentum.
Mid-Market Update: It was nice to wake up and see futures solidly in the green following Friday’s action and the headlines over the weekend.
For now, Wall Street’s biggest worry has moved from the Fed to Greece, again. While it is likely inevitable the country will default and leave the eurozone, talks of the PIGS returned. Concerns over Portugal, Italy, and Spain having a domino effect on the euro with a Greece exit heated up. To make matters more interesting, Russia is joining the party and could dance with Greece.
Pre-Market Update: Despite Friday’s pullback, the bulls wrapped up a successful week and reclaimed resistance while setting historic highs in the process.
Buy to open the SPY July 200 weekly puts (SPY150710P00200000, $0.45, up $0.08) at current levels.
Mid-Market Update: The bulls made some noise on this morning’s open, but the first half of today’s action has been controlled by the bears. The slight pullback hasn’t caused much damage, as fresh support is holding up well.
Pre-Market Update: I mentioned that all-times highs for the major indices were still in the mix, and Thursday’s run into blue-sky territory had the short-sellers covering. With June options expiring today, the action could stay hot as the bulls try to extend their winning streak to four-straight sessions.
Mid-Market Update: The bulls are going for their third-straight win, as today’s action has been strong on another run at resistance and push to all-time highs. While the talking heads continue to go on about the Fed, none of them have mentioned the breakout in the small-caps, as they are sitting at fresh all-time highs.
Take profits and sell to close the remaining third of the RAD July 8 calls at current levels.
$0.60 Stop Limit triggered on the remaining third of the RAD October 9 calls.
Pre-Market Update: Wall Street got its wish on Wednesday, as the Fed left interest rates unchanged. In the meeting minutes, 15 of 17 “Fed Heads” still indicated that the first rate hike should take place this year, just not right now. Although trading was choppy, the bulls prevailed for the second-straight session to keep resistance and all-time highs in play.
Mid-Market Update: The market has traded in a tight range ahead of today’s Fed announcement concerning interest rates. While there are both bullish and bearish signs heading into the big event, we still have to accept the idea that the market could stay bound within its four-month-long trading range.
Pre-Market Update: The bulls rebounded on Tuesday to push the resistance levels that had served as prior support, and today’s Fed meeting concerning interest rates could provide the spark for higher highs or lower lows. The party starts at 2 p.m. ET, so the action could get tight going into today’s announcement.
Mid-Market Update: Although I rely more on technical analysis than news when it comes to trading, the talking heads often like to attribute a rally or fall in the market to a particular headline.
Pre-Market Update: The bears got their second-straight Monday win following another backtest to support. I expected this week to be more volatile, and yesterday’s action lived up to the billing. Trading should be tricky through Wednesday, but hopefully a clear trend emerges once the Fed makes its announcement regarding interest rates.
Mid-Market Update: Talks between Greece and its European creditors broke down again late Sunday night. The discussions between the two sides lasted anywhere between 30 minutes to an hour, depending on what news feed you read, but the chit-chat failed to accomplish anything.
$0.57 Stop Limit triggered on the HILL September 7.50 calls.
$0.85 Stop Limit triggered on the HILL December 7.50 calls.
Quarterly reports will be the next market catalyst following the Fed news, so there will be plenty of action to play between now and into late July. The portfolio is well positioned to play the next major trend, as we continue to bank profits despite the incredibly tough trading ranges that we have been in for months.
Pre-Market Update: The market ended mixed last week, but the small-caps were able to gain some ground, while tech pulled back and held near-term support. The move back to resistance mid-week and to the top of the trading ranges had Wall Street in a fit, as many of the suits-and-ties have been, and still are, betting on a pullback. With the Federal Reserve making an announcement this week, the action will continue to stay hot, and it’s possible that the market could get thrown a curveball.
The Stop Limit of $0.85 has triggered on the second half of the WFC October 60 calls.
Mid-Market Update: Shares of Yahoo! (YHOO, $40.55, down $0.35) continue to languish and are close to taking out their 2015 and mid-May low of $39.12. The one-year chart shows a break below $39 could lead to a further backtest to $38-$36.
Pre-Market Update: The bulls pushed the next layers of resistance on Thursday’s open, but they had to deal with the intraday drama over Greece, which slowed their momentum. Reports that the International Monetary Fund (IMF) halted bailout talks with the country caused a slight pullback before the market made another push towards all-time highs.
Buy to open the UPS July 105 calls (UPS150717C00105000, $0.53, up $0.06) at current levels.
Buy to open the UPS October 110 calls (UPS151016C00110000, $0.70, up $0.03) at current levels.
Mid-Market Update: Shares of Krispy Kreme Doughnuts (KKD, $19.40, up $2.00) are zooming 11% following the release of a better-than-expected earnings report. The company reported a profit of $0.24 a share on revenue north of $132 million. Wall Street was looking for $0.22 a share on sales of $136 million.
Take profits and sell to close one third of the RAD July 8 calls at current levels.
Take profits and sell to close one third of the RAD October 9 calls at current levels.
Pre-Market Update: The market opened higher and stayed strong throughout Wednesday’s session, as the bulls recovered several layers of resistance that held into the close. The small-caps led the surge higher, but the rally was broad-based and got all-time highs back in play.
Take profits and sell to close Bank of America (BAC) common stock at current levels.
Take profits and sell to close the first half of the WFC October 60 calls at current levels.
Buy to open the RMBS July 16 calls (RMBS150717C00016000, $0.30, up $0.06) at current levels.
Buy to open the RMBS August 16 calls (RMBS150821C00016000, $0.60, up $0.05) at current levels.
Mid-Market Update: It seems that Wall Street is jumping back on the bullish bandwagon, as the market is enjoying its best day of gains since early May.
Pre-Market Update: The market was mixed on Tuesday, with bearish and bullish signs showing up throughout the session. Although Wall Street is saying that a selloff is looming, rational thinking and chart work show that the trading ranges from February are back in play.
Buy to open the RAD July 8 calls (RAD150717C00008000, $0.65, down $0.03) at current levels.
Buy to open the RAD October 9 calls (RAD151016C00009000, $0.55, flat) at current levels.
Mid-Market Update: The transportation stocks continue to weigh on the market, as the sector is pushing fresh 2015 lows.
Pre-Market Update: The bears got aggressive yesterday, and Wall Street is on the verge of calling for another selloff following Monday’s pullback. While it is too early to say this pullback will be the start of something bigger, the technical picture is weakening for the bulls.
Mid-Market Update: I have covered Krispy Kreme Doughnuts’ (KKD, $17.31, up $0.20) story throughout 2015 and, for the past few years, I have been bearish on the stock.
This week promises to be exciting, as does the rest of June. The current sector rotation and divergence has Wall Street confused once again, but they don’t study the market like I do. Retail and restaurant stocks have taken a beating on the rise in oil prices, or so analysts say, but I have been highlighting the strength in the financial and small-cap stocks.
Pre-Market Update: The bears got the weekly win and made Wall Street nervous to start the month of June. However, the damage was limited, as the small-caps and financial stocks offered clues that the bulls aren’t done running.
Buy to open the WFC July 60 calls (WFC150717C00060000, $0.20, up $0.06) at current levels.
Mid-Market Update: With futures weak going into and after this morning’s jobs report, it was a clear sign that backup support would be tested. The bulls responded well, as they have bounced off of the lows, but there is still more action to go.
Pre-Market Update: The recent seesaw battle between the bulls and bears continued on Thursday as both sides tried to make strides to clear support and resistance. Given the economic news, it was no surprise that a backtest to support might come. The bears will be looking for some follow-through, while the bulls will be gunning for a rebound.
Mid-Market Update: Futures were showing a nasty open this morning, as talks regarding Greece’s debt continue to be mired in an impasse. The sticking points between the country and its creditors are still about possible reforms. Here in the United States, economic news has been mixed ahead of tomorrow’s nonfarm payrolls report.
$0.65 Stop Limit triggered on the OPK July 20 calls.
Pre-Market Update: The bulls showed signs of life as they pushed resistance on Wednesday. The financial stocks were strong and held the majority of their gains, while the VIX stayed relaxed. The higher highs and higher lows were promising signs ahead of what could be an explosive end-of-week showdown between the bulls and the bears.
Mid-Market Update: Futures were showing a strong open this morning for the market and, while that was a good sign, I was more interested to see how the financial stocks would hold up.
Buy Rave Restaurant Group (RAVE) common stock at current levels.
Pre-Market Update: The bulls battled back on Tuesday to get a piece of the market pie, but the bears were greedy and got the overall win. The action in the small-caps was encouraging, but further gains are needed to clear major resistance across the board.
The Stop Limit of $12.60 has triggered on Rave Restaurant Group (RAVE) common stock.
Buy Rigel Pharmaceuticals (RIGL) common stock at current levels.
Mid-Market Update: Futures were volatile ahead of this morning’s open following multiple bomb threats against several airlines. It was reported that five U.S. flights were being targeted, but those threats have turned out to be bogus, as the aircrafts in question have landed.
Pre-Market Update: I mentioned that the first trading day of the month has historically been volatile, but Monday’s action was a bullish sign for June.
Mid-Market Update: The bulls got off to a good start this morning as the major indexes enjoyed a nice opening pop to test resistance. The action turned sluggish heading into the second half of trading, although the market has since rebounded.
May turned out differently than what most of Wall Street had planned for as the market finished the month higher. Despite the recent choppiness, the bulls are holding the top of the four-month trading ranges and are still gunning for historic all-time highs.
Pre-Market Update: May turned out differently than what most of Wall Street had planned for, as the market finished the month higher overall. Despite the recent choppiness, the bulls are holding the top of the four-month trading ranges and are still gunning for historic all-time highs.
Mid-Market Update: The bears are on track for back-to-back wins, and today’s rebalancing of the Russell indexes could help or hinder their efforts.
Pre-Market Update: The market’s see-saw action continued on Thursday, with the bears regaining the upper hand. Despite the win, not much damage was done, as the bulls stayed calm and held near-term support.
Mid-Market Update: Although there is still more action to go, the bulls have failed to keep yesterday’s momentum, as the bears regained control on this morning’s open.
Pre-Market Update: The market posted solid gains on Wednesday, as the bulls bounced back to push resistance. I mentioned that the bulls’ first order of business would be getting the VIX back below 13.50 this week, and that mission has now been accomplished.
Buy to open the RMBS July 15 calls (RMBS150717C00015000, $0.50, up $0.10) at current levels.
Buy to open the RMBS August 16 calls (RMBS150821C00016000, $0.43, up $0.06) at current levels.
Mid-Market Update: The bulls are rebounding from Tuesday’s punishment this afternoon, and today’s gains have made up over half of the losses. Resistance is holding and, while there is still more action to go, the rebound looks bullish.
Pre-Market Update: The bulls were looking for another 1%-2% upside move coming into the week, but they lost a lot of momentum following Tuesday’s pullback. The bears came close to recovering the broader market’s 50-day moving averages, but these levels held into the closing bell. With volatility returning, this week could offer clues on how the next major trend plays out.
Mid-Market Update: The big topic of discussion from last week was that the Dow had its tightest trading range in 100 years. Today’s action has been much different, as those on Wall Street are now getting back from vacation.
Despite the hard stance of “sell and May and go away,” Wall Street might be playing catch up again when it gets back from break. This week will be shorter than usual due to Monday’s holiday, but the first trading day after Memorial Day is usually bullish.
Pre-Market Update: The market gave bullish signals last week despite a continuation of the tight trading ranges, and fresh all-time highs were set once again. Volume was anemic last week, and the lightest it has been all year on Friday, as traders left for early vacations.
Mid-Market Update: The tight trading ranges from Thursday have continued into today’s session, with the indexes mixed heading into second half of trading.
Pre-Market Update: The bulls nearly got a clean sweep on Thursday following another day of trading within a tight range for the major indices. Tech led the way higher, but the small-caps slowed the momentum. The good news is that the VIX closed below 12.50.
Buy Dot Hill Systems (HILL) common stock at current levels.
Buy to open the HILL September 7.50 calls (HILL150918C00007500, $0.55, up $0.15) at current levels.
Buy to open the HILL December 7.50 calls (HILL151218C00007500, $0.80, up $0.05) at current levels.
Mid-Market Update: The weakness in the transports continues to alarm Wall Street following Wednesday’s 2% drop and test to 8,500. While I worried about this as well, I haven’t “flinched,” as I said that the Dow could possibly test 18,350-18,500 over the near term. This week’s highs on the Dow have been 18,351 and 18,350.
Pre-Market Update: The blue-chips were going for their fifth-straight win on Wednesday but failed at accomplishing this feat for the first time in 2015. The Fed minutes released yesterday provided a little afternoon drama, with the tight trading ranges holding and tech and the small-caps showing strength afterwards. The slight pullback in the overall market wasn’t much of a threat, as fresh support continued to hold.
Buy to open the IWM June 128 calls (IWM150619C00128000, $0.70, up $0.10) at current levels.
Mid-Market Update: It has been another choppy session so far today, as both the bulls and bears continue to play tug-of-war over recent support and resistance zones.
Pre-Market Update: The market was sluggish on Tuesday, and the major averages were split at the close of trading. The bulls pushed higher highs, while the bears chiseled on near-term support.
Buy Flextronics (FLEX) common stock at current levels.
Mid-Market Update: With the month of May winding down, the bulk of first-quarter earnings season has come and gone. Wall Street is already looking ahead to July, however, which is when the market will get second-quarter earnings. Although there will be daily earnings throughout the month of June, companies with different fiscal years usually report their numbers during this time frame.
Buy to open the June 22 calls (JBLU150619C00022000, $0.80, up $0.10) at current levels.
Take profits and sell to close the HILL September 7.50 calls at current levels.
Pre-Market Update: It was a beautiful Monday on Wall Street, as the bulls held court to push higher highs. The small-caps led the charge, but volatility ticked higher despite the positive session.
Buy to open the UPS June 105 calls (UPS150619C00105000, $0.57, down $0.03) at current levels.
Buy to open the UPS July 105 calls (UPS150717C00105000, $1.08, down $0.07) at current levels.
Mid-Market Update: With the month of May winding down, the bulk of first-quarter earnings season has come and gone. Wall Street is already looking ahead to July, however, which is when the market will get second-quarter earnings. Although there will be daily earnings throughout the month of June, companies with different fiscal years usually report their numbers during this time frame.
The Stop Limit of $6.81 has triggered on Dot Hill Systems (HILL) common stock.
The importance of the Transports holding their recent lows has a lot to do with Dow Theory. Old school traders like to see both the Dow and the Dow Transports making new highs in tandem in an overall bullish market. Obviously, this is not happening with the blue-chips near all-time highs while the Transports are planted below their 200-day moving average.
Pre-Market Update: The market traded sideways throughout last week before making a break toward the top of its trading range. The good news is that most of the major indices have cleared their range ceilings. The bad news is that the small-caps are still struggling.
Mid-Market Update: I have updated our current trades and I will be watching the action into the close like every Friday. There could Trade Alert ahead of the close, but, if you don’t hear from me, have a great weekend. I will be back Monday morning with a complete update.
Pre-Market Update: We have some nice pin action going with our current trades and I have moved up our Stop Limits to protect profit
Mid-Market Update: The bulls are once again pushing the tops of the trading ranges and are looking to hold their gains into the close. The action will likely stay heated into tomorrow’s trading session, which is May options expiration.
Pre-Market Update: The market traded in a tighter-than-normal range on Wednesday, with the bears getting the overall victory. The major averages finished mixed, and the small-caps disappointing once again. The transportation sector was weak, which is a possible bearish development that I’m watching carefully, but, overall, the bulls showed some strength.
