Pre-Market Update: The market ended mixed to start last week, as the Dow’s Monday winning streak ended at three with the slight pullback. Biotech stocks were weak after Wall Street said the sector was “overvalued,” and transport stocks pulled back as well, which was a warning that trouble could lie ahead.
Mid-Market Update: I spent all of last weekend and this week researching, plotting, digging and doing some chart painting. It is always important to have a game plan, especially as Wall Street has been on Spring Break. I’ve been doing the grind, and the good news is that the hard work should pay off.
Pre-Market Update: The bears won their fourth-straight session, but they showed why the bulls have been champion for three years running.
Mid-Market Update: I talked about the major moving averages in this morning’s Pre-Market Update and, as I was doing the chart work, I wanted to see where the uptrend lines were following Wednesday’s close.
Buy to open the X May 21 puts (X150515P00021000, $0.60, up $0.03) at current levels.
I wanted to send out this quick Trade Update to protect profits in a couple of our current positions.
Pre-Market Update: The bears won their third-straight session and did some damage on Wednesday, as the major moving averages are now back in play. Wall Street threw the baby out with the bathwater, and the “selloff” continued right into the closing bell.
There is always a headline — good or bad — that tries to explain why the market traded higher or lower on any given session. Today’s excuse was weakness in the biotech stocks, as they are getting squeezed to a pulp. On a technical level, the pullback is presenting either another great buying opportunity or the opportunity to short the market with put options going into April.
Mid-Market Update: March has been a tough month to trade so far, as the back-and-forth action has been a little frustrating. The Dow and S&P were already showing losses for the month coming into today’s session, and the test to their 50-day moving averages has exacerbated the pullback.
Pre-Market Update: The bears won their second-straight session following another backtest to support on Tuesday. I mentioned coming into the week that the back-end of March could be a little bearish, but the damage has been minimal. The first waves of support are holding, but further weakness could lead to additional selling pressure.
Mid-Market Update: Semiconductor stocks have been on a roll this year, and Wall Street is wondering if further gains are ahead. There are a number of ways to play the sector, as stocks are still at attractive entry levels despite the worry.
Buy to open the HILL June 5 calls (HILL150619C00005000, $0.65, up $0.05) at current levels.
Pre-Market Update: The bulls lost sight of the finish line on Monday as the bears edged them out for the win. The market slipped in the final minutes of trading, with heavy selling into the close. The losses were minimal, but it was a sloppy start to the week.
Mid-Market Update: Futures were up ahead of the opening of overseas markets and were showing a strong start to this morning’s trading on Wall Street. However, futures turned negative in between, and the market opened slightly lower to start today’s trading session.
$13.75 Stop Limit triggered on shares of JDS Uniphase (JDSU, $13.83, down $0.07).
While it is easy to say that the market rallied following the Fed’s more dovish stance, the real reason was based on the technicals, which is why it is so important to track them each and every week.
Pre-Market Update: The bulls gave good clues that higher highs might be in store after starting last week off with their third-straight Monday win. The push to prior resistance and the top of the trading ranges was a tease, however, as Tuesday’s pullback continued to worry Wall Street.
Mid-Market Update: Shares of Nike (NKE, $102.56, up $4.24) are trading at fresh 52-week and all-time peaks despite reporting a mixed quarter.
Pre-Market Update: A slight pullback on Thursday was almost a given following Wednesday’s short-covering rally. Although the broader market fell, the Nasdaq kissed 5,000 again and continues to show signs of a breakout to new all-time highs.
Buy Limelight Networks (LLNW, $3.91, up $0.05) at current levels.
Mid-Market Update: Apple (AAPL, $127.98, down $0.49) is now an official “blue-chip” stock, as the company joined the Dow this morning after replacing AT&T (T, $33.30, down $0.29) on the index.
Pre-Market Update: I normally wait until Friday afternoons to spin an office classic to wind down the week. However, I was singing mid-week following the statement from the Federal Reserve. Talk about a sweet spot — I was betting on yesterday’s rebound, but it caught Wall Street totally off-guard.
Buy to open the VEEV April 29 calls (VEEV150417C00029000, $0.60, down $0.11) at current levels.
Buy to open the CY April 16 calls (CY150417C00016000, $0.40, down $0.15) at current levels.
Buy to open the CY June 16 calls (CY150619C00016000, $0.75, down $0.15) at current levels.
Mid-Market Update: The waiting is almost over, as Wall Street continues to count down the minutes until the Fed’s latest policy statement. Regardless of the outcome, I will be glad once Janet Yellen speaks so some dust can settle.
Pre-Market Update: The broader market continued its see-saw action on Tuesday, but tech and the small-caps showed some green on St. Patty’s Day. The slick-talking pros keep saying that volatility is “off the charts,” given the daily triple-digit moves on the Dow, but they can’t see the forest for the trees.
Buy to open the GOGO April 23 calls (GOGO150417C00023000, $0.55, up $0.30) at current levels.
Mid-Market Update: FedEx (FDX, $178.05, up $0.73) will be announcing its numbers ahead of Wednesday’s open. It is one of the pieces of this week’s market puzzle that I’ve been anxious to hear, as its results will likely influence the Dow Jones Transportation Average ($TRAN, 9,088, down 8).
Pre-Market Update: The bulls got another Monday win following a strong session to start to the week. The surge past resistance kept the top of the trading ranges intact, but the VIX stayed above 15.
Mid-Market Update: Earnings will be light from now until the first week of April, which is when first-quarter earnings season starts. There are a few notable companies worth watching this week, however, and I could trade one of these names if there is a good risk/reward setup.
Buy to open the NVDA April 23 calls (NVDA150417C00023000, $0.65, up $0.09) at current levels.
Buy to open the NVDA May 24 calls (NVDA150515C00024000, $0.65, up $0.05) at current levels.
I have been warning that any closes above 17.50 could lead to 20-22 but the bulls held this level throughout all last week. If the bulls can get below 15 to start the week, it would be a nice signal higher highs are in store.
Pre-Market Update: The market rebounded last Monday, but the bulls failed to hold near-term resistance, and the VIX stayed above 15. The bears followed up by doing damage on Tuesday and Wednesday, but the action in the small-caps mid-week went unnoticed.
Mid-Market Update: It’s Friday the 13th, so I thought I would show you some scary charts and possible trade setups.
Pre-Market Update: The bulls made a great recovery on Thursday, as the market cleared resistance and stayed strong into the close. Volatility slipped a bit but remains elevated heading into the last trading day of the week.
Mid-Market Update: The second part of the bank stress tests were released after Wednesday’s close, and they didn’t go as smoothly as the first round. The 31 banks that are in focus passed last week’s tests with flying colors, but some weren’t as fortunate this time around.
Take profits and sell to close the first half of the KKD April 20 Puts at current levels.
Pre-Market Update: The bulls tried their best to recover resistance, but Wednesday’s slight rebound that lasted for much of the session faded into the close. The bears made their best attempt at cracking additional support levels, but a rebound in the financial stocks, along with the small-caps, held them back.
Mid-Market Update: One of the main clues I said to watch for this week was the action in the financial stocks. Although there has been a little bounce today, the sector is starting to break down like a rented mule following Tuesday’s pullback in the Financial Select SPDR (XLF, $23.97, up $0.15). The talking heads were more worried about the overall market pullback, but the break below the 50- and 100-day moving averages was bearish.
Pre-Market Update: The bears showed up to ruin the Nasdaq’s 15-year anniversary of its all-time high on Tuesday, and they cracked key levels of support in the process.
Buy to open Rigel Pharmaceuticals (RIGL) at current levels.
Take profits and sell to close Array BioPharma (ARRY) at current levels.
Mid-Market Update: Fourth-quarter earnings season is slowly winding down as we head into the middle of March. A “quiet” period usually ensues in late March and into the first week of April as companies prepare Wall Street for first-quarter earnings.
Pre-Market Update: The bulls rebounded from last Friday’s drubbing to get a Monday win, but the bears made a little noise as they pressured tech and kept volatility elevated.
Mid-Market Update: One of the first things the bulls need to do this week is get a Monday win. That goal is still up in the air, as trading has been choppy throughout today’s session.
Take profits and sell to close BlackBerry (BBRY) at current levels.
The unemployment rate dropped to 5.5%, and the headlines immediately started asking when the Fed would hike rates. Although a quarter-point rate hike is now nearly a given by June, traders took profits, and the market had one of its worst days of the year. The damage gave the bears their first weekly win in five weeks and created the buying opportunity that the suits and ties have been waiting for.
Pre-Market Update: Last week got off to a strong start as the market continued its record rally from February. The Nasdaq recovered and closed above 5,000 on Monday for the first time in 15 years. However, the celebration was short-lived, as the index spent a total of just 45 minutes above this level.
$1.35 Stop Limit triggered on the second half of the GOGO May 20 calls.
Mid-Market Update: With all the hype focused on the “then and now” of Nasdaq 5,000, I thought it would be interesting to bring up and track one famous stock that went public during the Nasdaq’s heyday. I will talk more about the ridiculousness of this argument or debate in next Monday’s Pre-Market Update, but one company that has survived the “dot.com” bubble is Krispy Kreme Doughnuts (KKD, $21.35, down $0.30).
I have three Trade Updates for the Momentum Stocks Weekly Portfolio.
Pre-Market Update: The indexes traded in a tighter range on Thursday, with the bulls recovering from a two-session skid. The bias to the upside was a bullish sign despite the worries over this morning’s jobs report.
Buy Discovery Laboratories (DSCO, $1.68, up $0.02) at current levels.
Mid-Market Update: The bulls are trying to bounce back from a two-day drubbing, as they have shown strength throughout the day. The bears are still having trouble with the near-term support that has acted as a nice base over the past two weeks.
Take profits and sell to close half of the GOGO May 20 calls at current levels.
Pre-Market Update: The bears made another attempt at cracking support on Wednesday, as the indexes tested fresh lows for the week. However, the bulls continue to hold a strong base of support that has formed in recent weeks following the continued run to all-time highs.
Buy Dot Hill Systems (HILL) common stock at current levels.
Buy Limelight Networks (LLNW) common stock at current levels.
Mid-Market Update: Shares of TiVo (TIVO, $11.58, up $0.33) are up 3% today and have traded to a high of $11.92 following a better-than-expected quarter.
Buy to open the ATML May 9 calls (ATLM150515C00009000, $0.40, down $0.05) at current levels.
Take profits and sell to close the second half of the TIVO May 12 calls at current levels.
Pre-Market Update: The bulls took a breather on Tuesday as the market stayed weak throughout the session. Near-term support held despite the heightened geopolitical concerns, and there are several other big events that will come into play during the rest of the week.
Take profits and sell to close AT&T (T) at current levels.
Mid-Market Update: Shares of Smith & Wesson Holding (SWHC, $13.05, down $0.69) are volatile today and will likely be on the move again tomorrow, as the gun-maker will be reporting earnings following the close.
Take profits and sell to close the WU May 20 calls at current levels.
$0.85 Stop Limit triggered on the WU March 19 calls.
Pre-Market Update: The Nasdaq closed above 5,000 for the third time in its history on Monday. It was the first time Tech has closed above 5,000 in 15 years and is certainly this morning’s headline news. While many on Wall Street say they aren’t surprised by the close, hardly any of them predicted that it would happen. Needless to say, the most hated rally in the history of Wall Street continues.
Buy to open the GOGO May 20 calls (GOGO150515C00020000, $0.85, up $0.10) at current levels.
Buy Flextronics (FLEX) common stock at current levels.
Buy to open the FLEX July 13 calls (FLEX150717C00013000, $0.50, down $0.05) at current levels.
Mid-Market Update: Each Monday, I try to list companies that are reporting earnings during the current week. The announcements tend to move individual sectors, and the market in general, as sentiment grows bullish or bearish on a stock or outlook.
$1.30 Stop Limit triggered on the CHRW April 75 calls.
For the Wall Street pros who went short last month, they have to be worried, as hype of Nasdaq 5,000 gains (and loses) steam. February was an incredible month for the market, and the current momentum is being questioned heading into March.
Pre-Market Update: Wall Street was hoping for a pullback last week during, as the final trading week in February has traditionally been a soft one for the market. The suit and ties were trembling from January’s selloff and were hesitant to put fresh cash to work despite the rebound off of the lows to start last month.
Buy to open the TIVO May 12 calls (TIVO150515C00012000, $0.42, up $0.02) at current levels.
Mid-Market Update: The bears are trying to end the month on a high note, but that is a serious understatement given the market’s performance for February. The selling pressure coming into the month was extreme, and Wall Street was bracing for lower lows.
Pre-Market Update: The bears slept all through the month and will be glad when February is over. Thursday’s action was mixed once again, although Tech and the small-caps continued their climb to fresh record highs.
Sell to open the BBRY March 11 weekly calls (BBRY150306C00011000, $0.24, up $0.05) at current levels.
Sell to open the JDSU March 14 monthly calls (JDSU150320C00014000, $0.23, down $0.02) at current levels.
Buy to open the YHOO April 47 calls (YHOO150417C00047000, $0.80, up $0.05) at current levels.
Mid-Market Update: The market action today has played out much the same way that it has all week. Trading has been choppy as we wind down the last week of February.
Take profits and sell to close the AXP March 84 calls at current levels.
$0.55 Stop Limit triggered on the CHRW March 75 calls.
Pre-Market Update: Wednesday was another choppy day for the indexes, as the bulls and bears each got a piece of the market pie. The mixed close was slightly bullish despite the continued bearish sentiment on Wall Street.
Buy to open the WU April 20 calls (WU150417C00020000, $0.36, up $0.10) at current levels.
Buy to open the AXP March 84 calls (AXP150320C00084000, $0.75, up $0.19) at current levels.
Buy to open the AXP April 87.50 calls (AXP150417C00087500, $0.56, up $0.19) at current levels.
Mid-Market Update: Futures have shown lower starts each day this week, with the indexes testing support on the open before pushing new highs. This is usually a bullish signal, and today’s session is following suit.
Take profits and sell to close half of the GOGO March 18 calls at current levels.
Pre-Market Update: Fed Chair Janet Yellen gave all of the right comments on Tuesday to keep the bullish momentum going, with round two coming today. My “fluff” targets for February continue to come into play as the indexes blaze their way towards further record highs.
Buy to open the FLEX April 12 calls (FLEX150417C00012000, $0.67, up $0.12) at current levels.
Mid-Market Update: Wall Street has not been as “patient” as the Fed would like as the debate over interest rates continues. Janet Yellen is speaking today and told the zombies that when the Fed removes the word “patient” from its meeting minutes, that it would not automatically signal a rate hike.
The Stop Limit of $1.30 has triggered on the second half of the BSX March 15 calls.
Pre-Market Update: The blue-chips fell for the second Monday in a row, but there were pockets of strength that held together in what the experts are now calling a fragile market. I mentioned that the bearish talk would heat up this week, but the bulls are looking large and are still in charge.
Buy to open the CHRW March 75 calls (CHRW150320C00075000, $0.50, up $0.05) at current levels.
Mid-Market Update: I mentioned this morning that fourth-quarter earnings were entering their final stretch as we wind down the season. However, there are still plenty of names to watch this week and into March as companies with different fiscal years report their numbers. April marks the start of first-quarter earnings season, so the cycle will repeat itself into May and June.
The bears will be looking for revenge this week, as the last part of February is historically bearish. The bad news for the bears is that the bulls broke out of a four-month long trading range, and they have momentum.
Pre-Market Update: The bulls continued to push fresh all-time highs last week as geopolitical concerns and Greece’s debt struggles eased.
Buy to open GOGO March 18 calls (GOGO150320C00018000, $0.45, up $0.05) at current levels.
Buy to open GRUB March 45 calls (GRUB150320C00045000, $0.55, up $0.21) at current levels.
Mid-Market Update: Although the bulls have been looking good, I was expecting a slight pullback today, and possibly into next week, as February expiration day has been extremely bearish in recent years.
The Stop Limit of 60 cents has triggered on the second half of the SNE March 28 calls.
Pre-Market Update: The bulls had another successful session on Thursday despite the mixed action as the bulls continue to push fresh highs. Today is February option expiration, so the action could increase as traders square up positions.
Mid-Market Update: We have a couple of trades that will be in play after today’s close and on Friday with earnings. Given the risk/reward with these trades, I have decided to take half profits in a few other trades to reduce some of our exposure.
Pre-Market Update: The Fed minutes provided a little relief from Wednesday’s selling pressure, although the bears still got the victory.
Take profits and sell to close Limelight Networks (LLNW) at current levels.
Buy to open the MRVL May 18 calls (MRVL150515C00018000, $0.50, flat) at current levels.
