Mid-Market Update: I normally stay up just before the overseas markets open and rise-and-shine two hours ahead of Wall Street’s open. However, last night had some extra flavor, as the mid-term elections lasted well into the early morning, but the payoff was a higher futures market that led to a great night’s sleep.
Pre-Market Update The market ended mixed for the second-straight session on Tuesday, while the mid-term elections lasted late into the night. Although the Republicans were expected to win a majority in the Senate, the nervousness showed in another choppy session.
Trade Alert: Buy to open the QQQ December 5th expiration 103 calls (QQQ141205C00103000, $0.85, down $0.23).
Mid-Market Update: Futures were choppy throughout the night and into this morning’s open and were indicating another tight trading session for today. The bears have been a little more aggressive in pushing near-term support, but the bulls are responding well, as there are pockets of strength in the market.
Pre-Market Update The bears ended their two-session Monday slide by getting a rare victory on the first trading day of November. The losses were contained, however, as the bulls held fresh support that served as prior resistance while pushing higher highs. Tech was steady, but oil closed below $80 for the first time in nearly two years, which may have had an impact on the action.
Mid-Market Update: Futures were showing a slightly lower open this morning following disappointing data from China, but short-term support held following the dip. Tech has shown strength, and new all-times have been triggered on the Dow and S&P 500 as we head into the second half of trading.
Buy to open Psychemedics (PMD, $14.45, up $0.07) at current levels.
Sell to close the AMZN November 260 puts (AMZN141122P00260000, $0.30, down $0.20) at current levels.
November is historically a bullish month for the market. December is also a bullish month for stocks, and my year-end targets I gave in February 2014 could be back on the map on continued smooth sailing.
Pre-Market Update I mentioned that October is usually a “bear-month killer,” but the talking heads and suit-and-ties once again doubted the bulls’ resiliency and were surprised to see all-time highs reached on Halloween.
Mid-Market Update: Despite the negative sentiment and doubters of the current two-week rally, the bulls are showing nice gains for October and are putting the finishing touches on an incredible month.
Pre-Market Update: It was another choppy session on Wall Street Thursday before the bulls used a final hour rally to push another layer of resistance.
Shares of DSCO traded down to $1.79 and the Stop Limit of $1.80 triggered on the dip.
Mid-Market Update: Buy to Open the QQQ November 102 calls (QQQ141122C00103000).
Pre-Market Update: Trading was choppy on Wednesday as the bears controlled much of the action before and after the Fed minutes were released. To no surprise, the Fed heads ended quantitative easing, and now the debate begins on if it was the right move or not.
Mid-Market Update: Shares of Facebook (FB, $75.82, down $4.95) are down 6% today despite a stellar earnings report that was released after Tuesday’s close. I mentioned yesterday that the options market was pricing in a 10% move in the stock, and shares were near $72 in after-hours trading last night.
Pre-Market Update: The bulls didn’t want to wait for today’s Fed minutes to be released, as they made a decisive move above resistance on Tuesday. The bears were nowhere to be found, and the major indexes traded in positive territory throughout the session.
Mid-Market Update: Shares of Facebook (FB, $80.96, up $0.68) have reached a fresh 52-week peak ahead of its earnings report, which is due out after today’s close.
Pre-Market Update: The market finished mixed on Monday, as the action between the bulls and bears ended in a draw. The bears controlled much of the session, with the bulls holding support and showing some strength. Today could be much of the same, as I’m expecting another flat action session into the release of the Fed minutes on Wednesday.
Mid-Market Update: The bulls would like to get a Monday win to keep last week’s momentum going, but, after the first half of trading, they have a little catching up to do.
Pre-Market Update: Wall Street was caught flat-footed last week, as the suit-and-ties jumped back on the bulls’ bandwagon in quick fashion.
The chart work for 2014 has been incredibly accurate and while I prepared for a market pullback in mid-September, and nearly called exact bottoms, I still believe this is one of the riskiest markets I have traded in years.
I wanted to provide a quick update on one of the current trades ahead of the weekend.
Mid-Market Update: There was a little weakness on the open this morning, but the bulls powered through the sluggishness and are pushing higher highs to end the week.
The spending spree at Amazon.com (AMZN) continues at all costs, literally, as the company reported a wider-than-expected loss for the quarter. It was nearly a given that they would come in with heavier losses, but investors are starting to tire of its massive investments and disregard to become a consistently profitable company.
Pre-Market Update: The bulls are making Wall Street a believer following Thursday’s run to the 200-day moving averages.
Mid-Market Update: The bulls are enjoying one of their best days of the year and are making a run at the 200-day MA’s (moving averages) as well as the 10-year uptrend lines.
Pre-Market Update: Headline news — good or bad — can be used daily to describe why the market went up or down, but the technical picture allows you to ignore the noise.
I wanted to provide a quick update on our Amazon.com (AMZN, $315.47, up $0.14) trade from this morning ahead of the earnings announcement on Thursday, Oct. 23, after the close.
Mid-Market Update: The bulls were rolling in the first half of trading, but volatility has returned, as the bears are looking to take control of the action into the close.
Buy to open the AMZN November 360 calls (AMZN141122C00360000, $2.10, up $0.80).Buy to open the AMZN November 260 puts (AMZN141122P00260000, $1.95, down $0.60).
Pre-Market Update: The charts showed room for a 3%-5% snapback rally over the near-term. The bulls are doing their best to make that happen in a week or less. The bears will likely have something to say at some point, but the momentum to the upside is becoming just as impressive as the recent move to the downside.
Buy Flextronics International (FLEX, $9.12, up $0.17).
Mid-Market Update: Shares of Apple (AAPL, $101.87, up $2.11) are back over $100 after announcing another stellar quarter following Monday’s close.
Trade Alerts: Buy to open the BABA November 95 calls (BABA141122C00095000, $2.30, up $0.60).
Buy to open the TWTR January 67.50 calls (TWTR15011700067500, $0.90, up $0.10).
Trade Updates: Set Limit Orders to close half of the MCD November 85 puts at $1.40.
Set Limit Orders to close half of the APOL November 23 puts at $1.40.
Pre-Market Update: The blue-chips fell triple-digits on Monday’s open, but the bulls recovered by the close to end a four-session Monday losing streak, and they got a clean sweep across the board.
Mid-Market Update: I had a long Sunday that lasted into the early hours of this morning and, when I tried to get some shut-eye, futures were showing a positive open and the possibility of a continued bullish run to start the week. Things quickly changed after “Big Blue” pre-announced earnings, which weighed down the Dow by nearly triple-digits on the open.
There will be plenty of action to talk about during another busy week, and I have done my best to show you some of the first clues I will be watching. The bulls will be trying to continue their rebound, and a positive Monday close would be a good start to the week.
Pre-Market Update: The bears extended their Monday winning streak at the start of last week despite the historic odds that the bulls might slow the current downslide. They gave it a “college try,” but resistance was too much and the market folded like a cheap lawn chair during the second half of trading.
Buy Aruba Networks (ARUN, $19.24, down $0.20).
Sell to open the ARUN November 20 calls (ARUN141122C00020000, $1.20, down $0.15).Buy Bank of America (BAC, $16.23, up $0.15).
Mid-Market Update: October option expiration has been bearish over the past decade, as the Dow has fallen six-straight and in eight of the past 10 years. However, the bulls are looking to end the streak and possibly win the week with today’s gains.
Pre-Market Update: The mixed and volatile action on Wall Street continued on Thursday, with the bulls getting the overall win. The bears failed to make lower lows but are on track for their third-straight weekly win.
Mid-Market Update: The bears took another swipe at support following less-than-stellar earnings results from eBay (EBAY, $47.35, down $2.85) and a lowered forecast from Netflix (NFLX, $352.70, down $95.89).
Pre-Market Update: It was a ferocious Wednesday on Wall Street, as the bears pushed the lows from April, and they are now eyeing February’s trough. Volatility went through the roof, and the incredible comeback by the small-caps only added to the insanity.
Mid-Market Update: The bears are continuing their assault on a bloody Wall Street, as panic has officially set in. Today’s action is being blamed on a number of headlines, and the main three are Ebola, Europe and the economy.
Trade Alert: Buy to open the MCD November 85 puts (MCD141122P00085000, $0.70, up $0.18).
Buy to open the QQQ November 99 calls (QQQ141122C00099000, $1.40, up $0.17).
Pre-Market Update: The bulls ended a three-session skid, for the most part, on Tuesday after holding down another volatile and choppy session. The indexes still struggled with major resistance and, more importantly, holding Tuesday’s gains. The flat finish leaves us with a market that can’t be trusted.
Mid-Market Update: The current volatility has been challenging to deal with, as the whipsaw action has taken me out of a few good trades. I have focused more on put trades in recent weeks and, while it is always nice to make a profit, sometimes you feel jaded when your homework was right but the return could have been bigger.
Pre-Market Update: When I was a kid, my pops would let me stay up late to watch the Monday Night Football game, but the deal was that I had to hit the sack when broadcaster “Dandy” Don Meredith belted out the aforementioned Willie Nelson tune. Sometimes, it would be well into the fourth quarter before the game was decided, but sometimes he would sing it in the third quarter.
Mid-Market Update: Futures were down significantly last night and ahead of the European open when I was wrapping up my homework last night. In fact, Dow futures were showing a possible triple-digit loss at the start of trading here in the United States, but they improved dramatically and were green ahead of Wall Street’s open. They say it is always darkest before dawn, and the turnaround overnight was slightly bullish.
Pre-Market Update: The bears started the week with their third-straight Monday win, although the bulls kept the losses in check. The run at near-term resistance turned sour in the second half of trading, with the small-caps leading the way lower after falling back below 1,100.
If there is continued weakness today, there is a good chance the lower price targets I have given will come into play. If so, there could be an opportunity to add additional put option trades, but I am expecting a fight from the bulls at some point this week.
Trade Alert: Buy to open the QQQ November 100 calls (QQQ141122C00100000, $0.60, down $0.42).
Buy to open the QQQ November 99 calls (QQQ141122C00099000, $1.40, up $0.17).
Mid-Market Update: Futures were significantly lower after midnight and remained that way into this morning’s open. They were a good clue that the bears were going to make an attempt at the 200-day moving averages, and how the bulls respond will be crucial for how next week plays out.
Pre-Market Update: Wednesday’s best day on Wall Street for the year turned into one of the worst on Thursday, as volatility remained insane. The major indexes closed below their first waves of support and are still in danger of testing their 200-day moving averages following the pullback.
Stop triggered on QQQ November 99 calls (QQQ141122C00099000).
Mid-Market Update: Futures were slightly higher after wrapping up my homework last night but became choppy heading into this morning’s opening bell. Following Wednesday’s biggest advance of the year, a pullback in the market was to be expected, but the bulls need to hold the first levels of support to avoid further weakness.
Stop triggered on Vanguard Natural Resources (VNR).
Pre-Market Update: The market made a key reversal on Wednesday after taking out last week’s lows and recovering prior resistance. The rally started shortly after the Federal Open Market Committee (FOMC) minutes were released, and the dovish tone and global concerns were a surprise. The “global concerns” seem to be a new wrinkle the Fed is worried about, as they often refrain from making these types of comments. However, Wall Street loved the news, and buyers went bargain hunting.
Trade Alert: Buy to open the SPY November 200 calls (SPY141122C00200000, $1.25, up $0.20).
Buy to open the QQQ November 99 calls (QQQ141122C00099000, $1.40, up $0.17).
Mid-Market Update: The market has been in a punishing mode lately, and I mentioned this week could provide the perfect opportunity to go long on short with December or January call or put options once a clear trend emerges.
Pre-Market Update: The bears continued their assault into Tuesday’s close, as the major indexes finished below significant levels of support. Coming into the week, I mentioned another back test was a strong possibility, as I expected last week’s lows to get tested. The rest of the week could get challenging for the bulls if support gets stretched and a new trend emerges.
Mid-Market Update: The bears are making another push at last week’s lows following a downgrade by the IMF (International Monetary Fund) to its growth forecast for the rest of this year and 2015. The organization now expects global growth to come in at 3.3% for 2014 and 3.8% next year.
Pre-Market Update: The bulls gave a good effort but failed to keep last Friday’s momentum, as the bears won their third-straight Monday session. I mentioned this week could be a great clue for a pending trend, but getting through it could be volatile.
Mid-Market Update: Futures were showing a strong open for the market this morning, but, after a first-half rally, the bears have returned.
Pre-Market Update: Protests in Hong Kong and political instability in Spain and Italy, along with a number of other headlines, rattled Wall Street last Monday, as the market pulled back, tried to recover and ultimately finished lower. The small-caps actually showed strength along with Tech, but it was another back-test to resistance. The S&P Volatility Index ($VIX) also closed above 15 and signaled further weakness.
This week will be a good tell for the VIX. If traders are going to step up to the plate for a year-end rally, this week could be “the bottom” if the VIX can get back below 13.50 and hold 15. If not, there could be additional selling pressure for another week or so.
Mid-Market Update: Futures were strong throughout the night and into this morning and were a good signal the bulls would have a parade today on a good Non-Farm Payrolls report. The economy added 248,000 jobs, and the unemployment rate dropped below 6% for the first time since 2008. August’s dismal numbers were revised to 180,000 from 142,000.
Pre-Market Update: Although the bears split Thursday’s session with the bulls, the bear conspiracy theorists had to be upset with yesterday’s close, as the bulls technically avoided what would have been the first four-session slide on the S&P 500 all year.
Stop Limit triggered on Hercules Offshore (HERO).
Trade Alert: Sell to close half of the position in the CAT November 90 puts.
Mid-Market Update: The bears have momentum and are working on their first four-session win streak of the year. The technical damage has been profound this week, and the fireworks are just beginning with third-quarter earnings season starting next week.
Trade Alert: Buy to open the MCD November 90 puts (MCD141122P00090000, $0.90, down $0.06.
Pre-Market Update: The technical signals I have been covering intensively over the past few weeks have been flashing warning signs, and Wednesday’s breakdown was the payoff for the bears.
Mid-Market Update: The downside targets on the 10-year and near-term charts I showed a few weeks ago are in play. Today’s action either represents the start of an incredible buying opportunity for the rest of the year or the beginning of what could quickly become a 10%-15% correction.
Trade Alert: Buy to open the KKD November 16 puts (KKD141122P00016000, $0.40, up $0.05).
Trade Alert: Stop triggered on GM December 32 puts.
Pre-Market Update: The bears won their second straight session on Tuesday to wrap up a victorious September as Wall Street braces for October.
Take profits and sell to close Discovery Laboratories (DSCO) – Stock Trade
Mid-Market Update: I mentioned that the next few weeks could provide some major updates from companies that might be falling short of Wall Street’s earnings estimates for the current quarter, which ends today.
Pre-Market Update: Protests in Hong Kong, political instability over in Spain and Italy and a number of other headlines rattled Wall Street on Monday, as the market pulled back, tried to recover and ultimately finished lower. The small-caps actually showed strength mid-day along with tech and held last week’s low, so there were some bullish signs to take away from yesterday’s session.
Trade Alert: Buy to open the WAG October 56.50 puts (weekly) (WAG141010P00056500, $0.45, up $0.10).
Mid-Market Update: Futures were pointing towards a lower open throughout the night while I was wrapping up my homework and got progressively worse into this morning’s open. The bears were aggressive at the start of trading, as they pushed the market lower by 1%, but the bulls held support and are trying to bounce off of the bottoms.
Trade Alert: Stop triggered on APOL November 24 puts.
The “death-cross” I have said to watch for weeks also played out on the Russell 2000, with the 50-day moving average (MA) falling below the 200-day MA.
Pre-Market Update: The bears continued their pressure from the prior Friday’s opening pop and drop to start the week, as the Dow fell triple-digits and the small-caps fell below key support at 1,140.
Mid-Market Update: Betting on Nike (NKE, $88.49, up $8.74) to beat Wall Street’s estimates has been a profitable play over the past year, as the company has topped forecasts for four straight quarters.
Pre-Market Update: It only took a day, but the slick-talking pros quickly learned Wednesday’s rebound rally was a head-fake.
Mid-Market Update: Futures stayed in a tight range throughout the night — mostly negative — and into this morning’s open. Had they been strong, I might have trusted yesterday’s snap-back rally, but I warned there were a few bearish clues from Wednesday that were troublesome.
Trade Alert: Buy to open the ARUN October 23 calls and the SPLS December 14 calls at current levels.
Pre-Market Update: The bulls avoided their first four-session losing streak of the year following Wednesday’s rebound, and the stigma of the “death cross” was avoided, as the small-caps recovered resistance along with the rest of the major averages. Volatility fell 10% but remains elevated, as Wall Street did some dip-buying.
Mid-Market Update: Futures were showing a strong start this morning, and the bulls have done well holding their gains. There is still another half of the trading session to go, and it remains to been seen if today’s pop marks a bottom or is simply a back test to resistance that served as prior support.
Pre-Market Update: The bears are doing a good Van Morrison impression this week and took another step towards cracking major support following Tuesday’s drubbing. It’s been nearly three years since Wall Street has experienced a 10% pullback, and the law of averages will eventually catch up with the bulls. Although it is still too early to tell if the current pullback will be the one that ends the streak, the bears are getting aggressive and have momentum.
Mid-Market Update: The upcoming focus on third-quarter earnings is just weeks away, but companies announce earnings every day on Wall Street. Some companies have different fiscal year start and end dates depending on when they incorporated.
Pre-Market Update: The bears continued their assault on the market following Friday’s opening peak to fresh all-time highs and delivered a nasty bite to the small-caps in the process. The “death cross” that has been developing since August finally triggered on the small-caps’ tumble below key support on Monday, suggesting there could be further weakness over the near term.
Mid-Market Update: I mentioned that Friday was the “perfect storm” for the market and that the action pointed towards continued weakness this week. Futures were showing a nasty open when I was wrapping up my research last night but had improved significantly ahead of the opening bell.
Pre-Market Update: The see-saw battle between the bulls and bears reached a feverish pitch last week as the bears came close to causing panic on Monday, while the bulls held a parade by pushing fresh all-time highs on the Dow by Tuesday’s close.
I’m still cautious on the near-term outlook, as I do see a flat to lower market developing ahead of third-quarter earnings season, which is three weeks away. Trading ranges can be tricky, and I want to make sure I’m prepared for one until the next round of fireworks. Otherwise, continue to bet on the bulls as long as support holds.
