New Trade (RIGL); Profit Alert (OPK)
Buy to open the RIGL September 5 calls (RIGL150918C00005000, $0.50, up $0.05) at current levels.
Take profits and sell to close the first half of the OPK June 16 calls at current levels.
Buy to open the RIGL September 5 calls (RIGL150918C00005000, $0.50, up $0.05) at current levels.
Take profits and sell to close the first half of the OPK June 16 calls at current levels.
Mid-Market Update: The market has traded in a tight range today, with the bulls holding a slight lead heading into the second half of trading. Worries over retail sales have caused some concern, as the results came in weaker-than-expected.
Pre-Market Update: The major indices traded in negative territory for much of Tuesday’s session, although the bulls did make a run into greener pastures intraday. The bears made another attempt at cracking support, but it stuck like Chuck as the trading ranges continue.
Buy to open the DMND June 31 calls (DMND150619C00031000, $0.45, up $0.05) at current levels.
Mid-Market Update: The bears came out strong at the open this morning to push the indices’ major support levels, but the bulls have bounced back and are trying to get back to even. With tech stuck in the mud, there is a chance that Cisco Systems (CSCO, $29.27, up $0.06) could provide a catalyst for higher highs on the Nasdaq.
Pre-Market Update: Although there were some pockets of strength, the market looked sluggish on Monday, with the bears getting the overall win. There were signs of weakness as well, as the financial stocks pulled back and the VIX stayed elevated.
Mid-Market Update: Although the market is mixed heading into the second half of trading, the action appears to be favoring the bulls, as tech and the small-caps are showing strength. However, the bears are attacking the broader market and the financial stocks, so neither side has gained a clear advantage.
The bulls continued their May momentum, as they rebounded from a choppy week with a strong Friday to get the weekly win. The bandwagon-jumping could continue despite the indices closing in on the top of their trading ranges, as traders (and the Fed heads) continue to try to call a market top.
Pre-Market Update: The bulls continued their May momentum, as they rebounded from a choppy week with a strong Friday to get the weekly win. The bandwagon-jumping could continue despite the indices closing in on the top of their trading ranges, as traders (and the Fed heads) continue to try to call a market top.
Mid-Market Update: The bulls were betting on a “Goldilocks” nonfarm payrolls number, and they got it after the report showed that 223,000 jobs were added in April. The unemployment rate dipped to 5.4% from 5.5%, which is the lowest level since May of 2008.
Pre-Market Update: The bulls held on to Thursday’s gains and recovered resistance, for the most part, but the market is still lower for the week. This morning’s nonfarm payrolls report will have an impact on the open, although today’s close could play a bigger role in deciding next week’s trend.
Mid-Market Update: The bulls are following the same trading script they’ve used for the past three-plus months, as they are now trying to recover from a two-day pullback that pushed support. Today’s gains are helping to push resistance, and the bulls will try to hold those levels into the close.
Pre-Market Update: The bears continue to take advantage of the nervousness on Wall Street and the pending unemployment report to push lower levels of support. This has been the worst two-day stretch since late January, and yesterday’s action may have been fueled by Janet Yellen’s comments about an inflated stock market.
Mid-Market Update: The bulls tried to recover from Tuesday’s losses this morning, as the market traded higher on the open. However, the gains quickly faded, and the bears continue to push lower levels of support. One bit of good news is that the small-caps are showing some relative strength, but they are still struggling with resistance.
Pre-Market Update: The bears snapped a two-session winning streak on Tuesday as they made their first appearance in May. Their return was expected, however, as resistance and the top of the trading ranges continue to hold ahead of Friday’s nonfarm payroll report.
Buy Dot Hill Systems (HILL) common stock at current levels.
Buy Psychemedics (PMD) common stock at current levels.
Buy to open the WFC October 60 calls (WFC151016C00060000, $0.67, up $0.05) at current levels.
Mid-Market Update: Alibaba is expected to report earnings of $0.43 a share on revenue of $2.78 billion. The company beat expectations by six cents last time out and matched the previous quarter since becoming public in September 2014. Sentiment has been bearish on the stock and the company will need to impressive quarter to change investor’s minds about getting back into the stock.
Pre-Market Update: The market got off to a good start for the week, as the major indices made a run to the top of their trading ranges. Although the bulls failed to hold near-term resistance zones, the action kept the possibility for continued all-time highs into May alive.
Mid-Market Update: Earnings season has been a mixed bag, depending on who you have been listening to, but the market has been holding up well overall despite the hits and misses.
While May has a reputation for being a bearish month, it has been bullish in recent years. During the past 16 years, May has been split, with the bulls and bears getting eight wins apiece. The “sell in May and go away” theme started gaining steam on Thursday’s pullback but settled down on Friday’s rebound.
Pre-Market Update: The bears got the last Monday win, as all of the major indices closed lower to start the week. The small-caps led the way and gave the first clue that a rocky week would be forthcoming. The VIX held 13.50 on Monday but bubbled higher on Tuesday despite another blowout quarter by Apple (AAPL). Shares ran to an intraday all-time high of $134.54 but finished the session lower by $2.
Mid-Market Update: This week and the month of April have been busy for the portfolio, but I can’t wait to trade the nuances of May. While the recent pullback knocked us out of some really good bullish trades, making profits in a volatile market is what I thrive on.
Pre-Market Update: The catcalls for a full-blown market correction got louder again on Thursday. The bulls got the April win, but the action in the small-caps was concerning. The broader market and tech enjoyed gains of 1% overall, but the Russell 2000 fell nearly 3% for the month.
Sell to open the AKS September 6 calls (AKS150918C00006000, $0.40, down $0.05) at current levels.
Sell to open the DRYS September 1 calls (DRYS150918C00001000, $0.05, flat) at current levels.
Sell to open the BEBE September 4 calls (BEBE150918C00004000, $0.35, down $0.05) at current levels.
Sell to open the VVUS September 4 calls (VVUS150918C00004000, $0.10, down $0.05) at current levels.
Sell to open the ZNGA September 3 calls (ZNGA150918C00003000, $0.16, flat) at current levels.
Sell to open the GALE October 2 calls (GALE151016C00002000, $0.15, down $0.03) at current levels.
The Stop Limit of $11.10 has triggered on TiVo (TIVO) common stock.
Mid-Market Update: Shares of Sony (SNE, $30.25, down $0.45) are down nearly 2% and are testing $30 despite posting better-than-expected earnings. The company had been updating Wall Street that it would beat expectations, but maybe it should have just kept quiet. The company said it will return to profitability for the first time in three years but gave conservative guidance going forward.
The Stop Limit of $4.40 has triggered on Rigel Pharmaceuticals common stock.
The Stop Limit of $6.30 has triggered on Dot Hill Systems common stock.
I have updates on three of the current trades in the portfolio. I want to reduce our exposure if there is continued market weakness into the weekend.
Pre-Market Update: The Fed heads failed to inspire a rebound off of the lows on Wednesday, as the market closed at its near-term support levels. The dictionary word of the day is “transitory,” which is a word used by the zombies to describe economic growth. The Federal Open Market Committee (FOMC)’s meeting minutes also revealed that its “calendar-based” guidance was officially retired, as they remain cautious on inflation risks as well.
Buy to open the LLNW September 4 calls (LLNW150918C00004000, $0.35, down $0.05) at current levels.
Mid-Market Update: The latest meeting minutes from the Federal Open Market Committee (FOMC) are due out this afternoon, and another round of debate on interest rates will surely follow afterwards. I would love to see an interest rate hike today just to end the speculation, but bets are being taken on a rate cut in June, September or in 2016.
Pre-Market Update: Geopolitical concerns caused market ripples on Tuesday, as reports surfaced that Iran had seized a U.S. ship. I mentioned in Monday’s Pre-Market Update that the recent saber-rattling around the globe could cause some uneasiness, and the volatility seen yesterday will likely get worse if the world remains on fire.
Mid-Market Update: This will be an incredible week for earnings, as the heart of first-quarter earnings season begins to wind down and the month of April comes to a close.
$0.30 Stop Limit triggered on the second half of the RIGL June 5 calls.
The Limit Order to sell to close the first half of the FCX June 23 calls at $1.10 has triggered.
Pre-Market Update: The bears got a Monday win yesterday, which may have given us our first clue that this week could be a little rocky. The bulls held near-term support, but the action in the small-caps (and biotech) was concerning.
Mid-Market Update: With the Nasdaq coming into the week within spitting distance of its all-time intraday high of 5,132, it’s fitting that Apple (AAPL, $132.85, up $2.57) would be announcing its numbers today, which could help or hinder the bulls’ record run.
Buy to open the OPK June 16 calls (OPK150619C00016000, $0.50, up $0.05) at current levels.
Buy to open the FCX June 23 calls (FCX150619C00023000, $0.55, up $0.10) at current levels.
For this week’s clues, watch the action in the small-caps and the VIX. I predicted single-digits for the VIX last year, and there is a good possibility that another test to 10 comes at some point this year. Last year’s test to 10.28 came in July.
Pre-Market Update: Last week, I said to watch for four clues that would let us know if the bulls had more gas in their tank or if they were running on empty. The first bullish clue we got was last Monday’s win on the Dow, as the blue-chips recovered the 18,000 level and the 50- and 100-day moving averages.
Mid-Market Update: The market is mixed heading into the second half of trading, but the bulls are looking good for the weekly win. Tech earnings have helped the Nasdaq push new highs today, with Google (GOOG) and Amazon.com (AMZN) leading the way higher. However, the lack of action in the small-caps is a little concerning.
Pre-Market Update: The bulls continued their assault on the tops of the trading ranges and all-time highs during Thursday’s rally. The bears made a little noise at the open, but the higher lows held support and led to higher highs into the close.
Mid-Market Update: Following some early-morning weakness, the market shrugged off the slow start and is pushing fresh 52-week and all-time highs. There are a number of marquee names reporting earnings after the close that will help or hinder Friday’s action, but all signs are pointing towards higher highs.
Pre-Market Update: The bulls regained resistance for the most part on Wednesday, with the VIX continuing its push to fresh 2015 lows. The bears seem to be retreating, but we still need to keep an eye on them, as they can strike at any time.
Buy to open the SPWR June 38 calls (SPWR150619C00038000, $0.95, up $0.05) at current levels.
Mid-Market Update: The back-and-forth action and nearly-three-month-long trading range has been frustrating for Wall Street. The ones that don’t do homework are on pins and needles waiting for next major pullback so they can star nibbling on oversold stocks. They believe stocks are overvalued at current levels and have said that quarterly earnings would be lousy.
Take profits and sell to close one third of the SNE May 32 calls at current levels.
Pre-Market Update: The bulls tried putting a two-session win streak together but failed at holding Tuesday’s opening gains. Three of the four major indexes finished lower, but tech shined and the VIX stayed relaxed.
Take profits and sell to close the DSCO common stock position from November 2014 at current levels.
Mid-Market Update: Futures were strong throughout the night and into this morning’s open as the bulls got off to a strong start. The upper levels of resistance were pushed on the opening pop, but the enthusiasm has faded heading into the second half of trading.
The Limit Order to close the first half of the RMBS August 14 calls at $1.30 has triggered.
Pre-Market Update: The bulls recovered most of Friday’s losses and reclaimed resistance during Monday’s snapback rally. The bears are still lingering, however, and fresh support is just a sneeze away. The action should heat up throughout the week, with some of the larger blue-chip companies and a number of marquee tech names scheduled to report earnings.
Buy to open the HILL September 7.50 calls (HILL150918C00007500, $0.45, up $0.15) at current levels.
Mid-Market Update: First-quarter earnings season kicks into second gear this week, and I mentioned that there would be a number of marquee names reporting their numbers. Here is a quick peak at the companies that will be reporting this week.
I have said for over a year now, the Nasdaq hasn’t come this far not to trade at record all-time highs. It is also important to remember the Russell 2000 just hit another all-time high last Wednesday. The lack of follow through on Friday was disappointing but one-day doesn’t make or break a trend.
Pre-Market Update: I often say that the bulls like to take the stairs higher, while the bears prefer to take the elevator down. Last week’s action stayed bullish throughout the week, with the bulls building solid gains through mid-April.
Mid-Market Update: The bulls are trying to put a cherry on top of a good week while keeping their momentum going into the heart of first-quarter earnings next week. April option-expiration day has been bullish over the past two decades, as the Dow has finished higher 75% of the time. However, those odds went out the window at this morning’s open.
Pre-Market Update: The market finished lower on Thursday, but the losses were kept in check as fresh support held. The action was relatively mild, and the indexes stayed in a tighter range, with the bulls showing some strength late in the day.
Mid-Market Update: Shares of Etsy (ETSY, $28.90, up $12.90) are zooming higher by over 80% today following the company’s IPO (initial public offering). The offering was priced at $16 and raised $267 million on 16.7 million shares sold.
Pre-Market Update: The bulls regained their footing on Wednesday, as all of the major averages finished higher. The gains have pushed the indexes to or above the tops of their trading ranges, and the all-times highs are in play once again.
Mid-Market Update: Shares of Bank of America (BAC, $15.64, down $0.18) are down fractionally following the release of its first-quarter earnings results this morning.
Pre-Market Update: The market was choppy on Tuesday as the broader indexes showed strength, while tech and the small-caps pulled back.
Mid-Market Update: Shares of McDonald’s (MCD, $97.45, up $0.01) are on the verge of a major move, as earnings are due to be released on April 22. This could be the catalyst that drives shares to fresh 52-week peaks north of $103 or pushes MCD lower towards $90.
Pre-Market Update: The bulls were cruising during the first half of trading on Monday, with the small-caps testing fresh all-time highs. The bears started making noise during the second half of trading and used a final-hour growl to get nearly a clean sweep. The broader market and tech failed to hold their gains, but the Russell avoided a loss, and first-quarter earnings season is now officially underway.
Mid-Market Update: First-quarter earnings season kicks off this week, and the financial stocks will garner much of the attention. While I covered the low expectations for earnings, overall, this sector should perform well given the recent bank stress test results.
Take profits and sell to close the first half the QQQ May 110 calls at current levels.
$1.30 Stop Limit triggered on the second half of the CMCSA May 60 calls.
Last Friday’s win was the Dow’s third-straight up Friday along with an up Thursday ahead of Good Friday. Up Monday/Friday closes usually signal money is moving into the market while down M/F closes signal cash is moving to the sidelines. Mixed Monday/ Friday closes can indicate trading ranges.
Pre-Market Update: The bulls showed strength last week, as the Dow started with a win on Monday. The VIX closed below 15 but was stretched for the second-straight session as the bottom of the trading ranges were tested. Wall Street sold on the nonfarm payrolls report from the previous Friday, but, when support held, it was a good sign.
Mid-Market Update: The bulls are trying to nail down their second-straight weekly win as they continue their assault on the top of the trading ranges. With earnings season starting next week, Wall Street has been betting on a pullback, as they believe corporate numbers will come in below expectations.
Buy to open the JBL May 24 calls (JBL150515C00024000, $0.60, up $0.05) at current levels.
Buy to open the IWM May 128 calls (IWM150515C00128000, $0.90, up $0.05) at current levels.
Buy to open the QQQ May 110 calls (QQQ150515C00110000, $0.57, down $0.03) at current levels.
Buy to open the RMBS May 14 calls (RMBS150515C00014000, $0.38, up $0.03) at current levels.
Buy to open the RMBS August 15 calls (RMBS150821C00015000, $0.53, down $0.02) at current levels.
Pre-Market Update: The bulls showed their resiliency as they moved towards the top of the trading ranges on Thursday, and tech showed continued strength to lead the way. The small-caps struggled and failed to join the party, but the VIX dropped below 13.50 to confirm possible higher highs.
Mid-Market Update: Gold broke through $1,220 on Monday but slipped $6.00 on Tuesday and $5.50 on Wednesday to close at $1,202.70. While a rally back to $1,220-$1,240 could still come, a close below $1,200 today would be a bearish development and might confirm that a temporary top is in.
Pre-Market Update: The bulls returned to their winning ways on Wednesday, as the market closed higher for the third time in the past four sessions. The final hour of trading was a little choppy, but the closes above resistance were bullish.
Mid-Market Update: Although first-quarter earnings season doesn’t officially start until next week, former Dow component Alcoa (AA, $13.64, up $0.21) will announce its numbers after the bell today. The call options have been active this week, as bullish traders are betting on a move past $14.
Pre-Market Update: The bulls failed at getting their third-straight win following Tuesday’s late-day slide in the market. The action in the small-caps was a bummer, as the index failed to hold fresh support. The talking heads took notice of the pullback into the close, but no major damage was done.
Buy to open the RMBS May 13 calls (RMBS150515C00013000, $0.58, up $0.21) at current levels.
Buy to open the RMBS August 15 calls (RMBS150821C00015000, $0.47, up $0.17) at current levels.
Buy TiVo (TIVO, $11.00, up $0.10) common stock at current levels.
Mid-Market Update: Trading shares of Sony can be gut-wrenching, as the stock tends to make large price moves. Shares are up over 45% this year and set a fresh 52-week high of $29.58 on Monday.
Pre-Market Update: The bears did some damage on Monday’s open as Wall Street rushed to sell stocks at the start of trading. They wanted to sell first and ask questions later, and it made for the perfect rebound. The bottoms of the trading ranges easily held, with the Dow and S&P 500 recovering their 50-day moving averages.
Mid-Market Update: The day after Easter is typically the second worst post-holiday session according to the history books, but Friday’s nonfarm payrolls made for a splashier headline and caused a bit of a pullback at the open this morning. The talking heads are trying to explain the rebound off of the lows and the reasons for a higher market as we make the turn into afternoon trading.
Buy to open the SNE May 31 calls (SNE150515C00031000, $0.70, up $0.35) at current levels.
The goal is to stay calm this week and to let the dust settle from the two-month trading range that has been keeping both the bulls and bears at bay. Once the all-clear signs are flashed, we will take action. The first quarter was incredibly busy and profitable, so the last thing we want to do is to give away profits.
Pre-Market Update: Although the market was closed on Friday, the nonfarm payrolls report was released, and the results had a negative 1% impact on futures. The report came in much worse than expected, as just 126,000 jobs were added versus expectations for 250,000. The unemployment rate stayed flat at 5.5%, but more Americans are out of work. These results will certainly reheat the Fed’s interest-rate debate, but bigger concerns lay ahead if the bottoms of the trading ranges fail to hold.
Mid-Market Update: Shares of Microsoft (MSFT, $40.14, down $0.58) are on the verge of cracking $40, which is a level I have been watching like a hawk for a few months. A drop below this level would likely get the 52-week low of $38.51 and possibly the mid-$30s in play.
Pre-Market Update: The first day of April was foolishly spent worrying about a major correction, as the talking heads were in overdrive throughout the session. The bears were growling, but the bulls’ planned traps held them back. While there is always the chance of lower lows, the game plan we had coming into this week is rounding out perfectly. Today’s action could provide the clues we are looking for regarding how the next week or two and the rest of April may play out.
The $12.45 Stop Limit has triggered on Flextronics (FLEX) common stock.
The $0.54 Stop Limit has triggered on the FLEX July 13 calls.
Mid-Market Update: This Van Halen classic came to my brain after seeing futures last night and early this morning. It may feel like the bulls are walking the plank again, but let’s put things in perspective.
I have additional trade updates this morning for our positions in FLEX. Shares traded to another 52-week high yesterday, but I’m raising our Stop Limits to protect profits.
Pre-Market Update: The bears got a slice of the quarterly pie following a late-day pullback on the Dow. The blue-chips failed at holding their first-quarter gains, as they stumbled at the March finish line. However, the other major indexes closed the quarter with gains following the late-day reshuffling.
Buy to open the RIGL June 5 calls (RIGL150619C00005000, $0.25, up $0.07) at current levels.
Mid-Market Update: Futures were showing another weird opening after midnight, with the S&P 500 slightly lower, but the Dow and Nasdaq 100 futures were showing another strong opening. Usually, the futures market ahead of the overseas markets opening sways one way or another. Given the weirdness of March, it can be blamed on a couple of things.
I have an update on one of our current trades following a brokerage downgrade late in yesterday’s session. Shares made a fresh 52-week high on Monday and, while I totally disagree with the downgrade, I want to protect our profits.
Pre-Market Update: Wall Street blinked on Monday’s open and tried to get back on the bulls’ bandwagon as the market trended higher throughout the day. It was a great start to the week, as the bulls won their second-straight session and their fourth Monday session in the past five.
Mid-Market Update: Futures were up slightly after midnight and got progressively stronger ahead of Wall Street’s open this morning. This was a good sign to see for the bulls, and there were also a number of merger and acquisition deals announced today that added to the bullishness.
Buy to open the FLEX May 13 calls (FLEX150515C00013000, $0.32, up $0.08) at current levels.
Trade Updates: We were filled in both of the QQQ trades on this morning’s open, as both options I recommended opened at $0.65. I have now set the parameters for each trade.
Buy to open the QQQ April 108 calls (QQQ150417C00108000, $0.45, up $0.05) with a limit order at $0.65.
Buy to open the QQQ May 110 calls (QQQ150515C00110000, $0.60, up $0.05) with a limit order at $0.80.
History shows that when Wall Street and Main Street have been this bearish in the past, the S&P 500 has risen 98% of the time. Even more mind-blowing is that the average gain is more than 25% on the index. This would equate to the S&P trading past 2,500, but don’t tell this to the suits and ties.