Mid-Market Update: Shares of Shake Shack (SHAK, $32.75, up $0.45) will be on the move in extended trading on Wednesday, as the company is scheduled to announce earnings after the closing bell. Shares recently tested a multi-month low of $30.90 but held the 52-week low of $30 that was set in January of this year. Below is a two-year chart that shows the IPO debut and the subsequent run towards $100 afterwards.
Pre-Market Update: The bulls registered their best session since March following Monday’s blowout rally, which put an end to a nine-session slide. The bears were caught off guard, and they gave back more than half of the losses over that time period, but they still hold an edge as additional layers of resistance come into play.
Mid-Market Update: Futures were showing a strong open this morning following the news over the weekend that the FBI would not bring any charges against presidential candidate Hillary Clinton regarding her email debacle. While I often say that market pundits like to attach a headline when the market goes higher or lower, my notes from the weekend focused on the market’s oversold condition and a possible rebound rally this week.
Pre-Market Update: The bears pushed lower lows to end last month, and November also started off weak, with a break below the October lows ahead of the Fed news mid-week. The zombies’ decision to leave interest rates unchanged was certainly not a shocker from a hand that has been read worse than a fish at a poker table filled with sharks.
Mid-Market Update: Futures were flat ahead of this morning’s non-farm payrolls report, but they improved following the news that 161,000 jobs were added for October, with the unemployment rate falling from 5% to 4.9%. Wall Street was looking for a print of 175,000.
Pre-Market Update: The nervousness on Wall Street went up a notch following Thursday’s continued pullback and ahead of this morning’s jobs report. Good or bad, the lower lows came on continued volatility, as another key level of resistance was cleared. The upcoming weekend and presidential election will make it hard for investors to stay long, and buying on weakness seems to have gone out of style.
Mid-Market Update: Wall Street will be cheerleading for Starbucks (SBUX) to announce better-than-expected earnings today, as they are due to be released after the close. Analysts are expecting the company to post a profit of $0.55 a share on revenue of $5.68 billion.
Buy to open the SBUX January (2017) 47.50 puts (SBUX170120P00047500) for a maximum price of $1.10.
Set a Limit Order to sell to close the LSCC December 7.50 calls at $0.90.
Pre-Market Update: The market pundits were accurate in predicting that the Fed would stand pat on raising interest rates, and the December meeting is now in focus. Still on the radar for this week is Friday’s unemployment report, which could come in weaker-than-expected based on another private sector jobs report released on Wednesday.
Mid-Market Update: The bears are trying to push fresh lows ahead of the Fed’s decision on interest rates today, which is due to be released at the top of the hour. Wall Street is nearly 100% certain that no rate hike will be announced, but I have taught myself to expect the unexpected when it comes to trading the stock market.
Pre-Market Update: The market pulled back on Tuesday, with the major indices falling below the previous October lows. The stretch below support and the lower lows could lead to further weakness, as Wall Street is finally noticing the spike in volatility.
Mid-Market Update: The market has traded on both sides of the ledger during the first half of the action and ahead of the Fed’s two-day meeting that starts today. The zombies will be sleeping through the get-together, however, as the upcoming presidential election is just a week away. There is no scheduled press conference afterwards, so risk may be limited.
Buy to open the MSFT December 57.50 puts (MSFT161216P00057500) for a maximum price of $1.00.
Pre-Market Update: Trading was extremely tight on Monday, with Wall Street still waiting for a major breakout or breakdown to occur. Although the bulls and bears offered no clues, the small-caps and the VIX traded higher after holding support and resistance, respectively.
Mid-Market Update: Shares of Microsoft (MSFT, $60.38, up $0.51) recently broke out to a fresh 52-week and all-time high of $61.37 following a better-than-expected earnings report. Earlier this month, the company reported earnings of $0.76 a share on revenue of $22.3 billion. Wall Street was looking for a profit of $0.68 a share on revenue of $21.7 billion.
Pre-Market Update: The bulls got their best shot at testing and possibly breaking out to fresh all-time highs last week, but the bears had other plans. The Nasdaq was within 1% of its lifetime high going into heavy-weight Apple’s earning’s announcement. The results failed to impress Wall Street, despite the company forecasting a strong holiday season for its products.
Mid-Market Update: Today is the 85th anniversary of the worst two-day stretch ever on Wall Street, in which the Dow lost a whopping 23% of its value. I was reminded of this 1929 nugget of history while I was doing my homework last week, and it’s one reason why I said it would be imperative the bulls clear resistance by the end of this week. So far, that hasn’t happened.
Pre-Market Update: The market pulled back on Thursday during another choppy session and a continued tight trading range. Although the bulls held support for the most part, the small-caps’ fall back below the 1,200 level was another bearish development.
Mid-Market Update: The Dow hasn’t made a triple-digit move in 11 sessions, and the lack of 1% moves in the overall market has confirmed the trading range that I warned about at the start of last week. I followed up those comments this morning by saying that the tight action could continue into the presidential election, but the lower lows, I warned, are concerning.
Buy to open the QQQ November 115 puts (QQQ161118P00115000) for a maximum price of $1.20.
Pre-Market Update: Although the bulls held support and the blue-chips finished the session higher on Wednesday, the lower lows for the week are a cause for concern. Additional weakness and a move below last week’s lows could lead to some end-of-month drama and provide more momentum for the bears.
Mid-Market Update: The market started off weak this morning following a number of disappointing earnings reports, but it has rebounded off of its lows heading into the final hours of trading.
Pre-Market Update: I know I have sounded like a broken record all month by continually hinting that the market could possibly return to all-time highs. Well, the bulls were almost there, and they were looking for Apple (AAPL) to help take them back to the promised land. However, a disappointing report has caused another “skip” in the record, and that has Wall Street preparing for another pullback.
Mid-Market Update: Shares of Six Flags Entertainment (SIX) could make a major move on Wednesday, as the company is scheduled to report earnings before the opening bell. The technical setup is bearish, and earnings have been choppy over the past year.
Take profits and sell to close the first half of the QQQ November 120 calls at current levels.
Buy to open the SIX November 50 puts (SIX161118P00050000) for a maximum price of $1.50.
Pre-Market Update: Tech came through in a big way on Monday, as the Nasdaq cleared major resistance. Merger and acquisition news stole the headlines, but the bigger development was the bulls’ ability to clear upper resistance across the board. Volatility continued to fall, but it is holding lower support ahead of a busy week for earnings.
Mid-Market Update: I covered a few companies that are scheduled to report earnings this week in this morning’s Pre-Market Update and, with this being the busiest week for third-quarter earnings, the slate is heavy.
Pre-Market Update: The bulls snapped a two-week losing streak as the market made slight gains last week. However, the technical picture has weakened, with the bears growling and a number of high-profile earnings due out this week. Volatility has been creeping lower, but it could come back into play in a big way if corporate earnings come in with sketchy results or if outlooks are lowered.
Mid-Market Update: Today’s action has been mostly flat, but the bulls are on track to get the weekly win. The bears have made several attempts to crack support, although it appears the recent trading range will carry over into next week.
Pre-Market Update:The bears made an appearance on Thursday, but they did little to disrupt my thesis of staying long. Volatility continued to fade, although it could get going again if October options expiration comes into play today. In recent months, the action has been less volatile on expiration days, and a VIX close below 13.50 would be a very bullish sign ahead of the weekend.
Mid-Market Update: The bulls are working to secure a three-session win streak today, and they are also trying to end a two-week losing streak that began at the start of October. Overall, trading has been choppy, as Wall Street is awaiting October options expiration tomorrow.
Pre-Market Update:The market trudged higher on Wednesday to push near-term resistance levels once again. Continued strength appears to be in the cards, but October options expiration is this Friday, so how we finish the week will be the more important part of the overall picture.
Mid-Market Update: E*Trade Financial (ETFC) is scheduled to announce earnings this Thursday, after the closing bell. The company is expected to post a profit of $0.40 a share on revenue just south of $471 million.
Pre-Market Update:The bulls recovered the losses from earlier in the week and pushed upper resistance on Tuesday following an all-day romp in positive territory. However, the failure to clear resistance remains a concern, and the bears are still holding the VIX above 15.
Mid-Market Update: The bulls are pushing higher highs today, and the market’s near-term resistance levels are being tested. Tech and the small-caps are leading the charge, although IBM (IBM, $150.52 down $4.25) is weighing down the Dow slightly following the company’s earnings update.
Pre-Market Update:The bulls held court for much of Monday’s session, while the bears pushed near-term support. Although the action was frustrating to follow, there were some bullish clues that suggest higher highs should be in play into the end of the month.
Mid-Market Update: The bulls are shooting to get their third-straight Monday win today, but they have been having trouble keeping the bears at bay since the opening bell. The losses have been contained, however, and a rebound off of the lows into the close would be a slightly bullish signal.
Buy to open the ETFC November 29 calls (ETFC161118C00029000) for a maximum price of $1.15.
Pre-Market Update:The bulls got off to a good start last week, but trading was choppy heading into the mid-week Fed minutes. Although the market closed with mixed results on the news, Thursday’s pullback was another reminder of how close the bears are to making this a nasty October. However, Friday’s rebound is keeping the bulls in the game, and earnings season will start to pick up steam in the coming weeks.
Mid-Market Update: As is true with most small-cap stocks, shares can be volatile. Lattice Semiconductor (LSCC, $6.03, down $0.03) has a market cap of $722 million, and the company is expecting to generate revenue north of $460 million this year. Theoretically, a $1 billion buyout offer for LSCC could provide the acquirer with a great company for under $10 a share.
Pre-Market Update: The bears are on track to score their second-straight weekly win this afternoon, as the bulls need to make up losses of 1%-2% across the board. While that is certainly possible, I’m more worried about the market’s down-trending resistance level ahead of the weekend.
Buy to open the QQQ November 120 calls (QQQ161118C00120000) for a maximum price of $1.20.
Mid-Market Update: With today’s push towards lower lows, the bears are in familiar territory, and the market’s support levels from September are now back in play. Today’s close should provide additional, crucial details as to whether the August lows will be tested or if current support levels hold and a rebound is in store for next week.
Pre-Market Update: The market was skittish on Wednesday, but stocks managed to hold onto their gains following the release of the Federal Open Market Committee (FOMC) minutes. Unfortunately, there were no major hints in the Fed update that a rate hike would come in November or December, as the zombies tiptoed through another meeting while leaving Wall Street and investors guessing.
Buy to open the LSCC December 7.50 calls (LSCC161216C00007500) for a maximum price of $0.40.
Mid-Market Update: The market has traded within a tight range and on both sides of the ledger today ahead of this afternoon’s Federal Open Market Committee (FOMC) minutes, which will be released at 2 p.m. EST. Anxiety over the next potential rate hike remains, and Wall Street will be digesting the news afterwards to get a better idea about what the zombies are thinking.
Sell to close the KR November 27.50 puts at current levels.
Pre-Market Update: The bears pushed monthly lows during Tuesday’s session, and the bulls struggled into the closing bell. Continued weakness today could get the September lows in play, but these levels will need to hold in order to avoid a possible selloff.
Mid-Market Update: While I was a little uneasy about a pullback today, I’m not too worried at the moment, providing fresh support levels hold and lower lows aren’t set versus those made earlier this month. It is too early to say whether a session bottom is in, but the major indices have shown signs that they are trying to stabilize.
Pre-Market Update: The bulls followed the game plan we drew in the sand ahead of Monday’s open, as the Dow halted its Monday losing streak at three. The major indices held most of their gains into the close, and volatility settled down despite the pop at the opening bell.
Mid-Market Update: This afternoon, I want to take a look at some of the companies that will be reporting earnings this week, as there could be an opportunity for a trade amongst these names. If I see an opportunity with a good risk/reward profile, I will send out a Trade Alert, so stay tuned.
Buy to open the FNSR November 31 calls (FNSR161118C00031000) for a maximum price of $1.45.
Pre-Market Update: The bears got their first weekly sweep in three weeks last Friday, as the major indices closed slightly lower. The damage was minimal, however, and the bulls held near-term support on the pullback, while volatility stayed relatively low.
Mid-Market Update: Shares of Rave Restaurant Group (RAVE, $2.84, up $0.06) continue to disappoint investors this year, as they have traded to a fresh 52-week low $2.72 this morning. This once-high-flying, small-cap stock came into the year at $6.39 and has since lost approximately 56% of its value at current levels. As you can see from the three-year chart below, shares reached an all-time high of $16.20 on March 12, 2015, but continued losses and changes in management have not been a winning formula for a higher stock price.
Pre-Market Update: The market could be on the verge of establishing a short-term trend, either bullish or bearish, as a result of this morning’s jobs report and the start of third-quarter earnings season next week. The recent action is suggesting that higher highs could come into play, but the market can turn on a dime, as we have seen throughout the year.
Mid-Market Update: Today’s choppy action seems to be par for the course considering that Wall Street is waiting for tomorrow’s nonfarm payroll numbers to cross the tape. The bears have controlled much of the session, but the bulls have touched green territory in some areas to keep things interesting.
Pre-Market Update: The bulls battled back on Wednesday to regain their momentum, as they spent the day in positive territory. While the bears took the day off, they haven’t gone away, and they still hold the weekly lead.
Mid-Market Update: I have always admired Under Armour (UA) and the fact that it is chasing the 800-pound gorilla in the space — Nike (NKE) — while building its own brand. However, on a technical level, UA shares could be headed towards a backtest to $35-$32.50.
Pre-Market Update: The bears got their second-straight win on Tuesday, and the market’s lower levels of support have now come back into play. If the bulls can’t rebound today, this week’s listless trading could last into next week, and there could be a continued pullback into the start of third-quarter earnings season.
Mid-Market Update: The market got off to a good start this morning, as the bulls looked motivated to regain resistance. However, trading turned choppy about an hour into the session, and the bears are still lingering.
Buy to open the KR November 27.50 puts (KR161118P00027500) for a maximum price of $0.60.
Pre-Market Update: The bears won their third-straight Monday session yesterday, although the bulls were able to hold during the pullback to support. The action was bearish throughout the session, but the bullish close offered some hope that higher highs could be made this week.
Mid-Market Update: While third-quarter earnings season doesn’t officially start until next week, there are a few major earnings announcements scheduled to be released over the next several days. The companies reporting this week have different fiscal years, but their results could be a primer for things to come.
Pre-Market Update: The bulls and bears survived a volatile September, and both sides seem to be feeling good about the action. Friday’s rebound gave the bulls the weekly win, and momentum is on their side heading into this week as well. The bears will be looking for some October magic, but, while this month has been known for some massive selloffs, it has been historically bullish.
Mid-Market Update: The bulls are trying to recover yesterday’s losses and are on track for the weekly win, providing current gains hold into the close. The monthly gains and losses will likely be split, with the bears holding the Dow and S&P 500 hostage.
Pre-Market Update: The bears slowed the bulls’ momentum on Thursday, as crude oil, the financial stocks and the small-caps led the way lower. I mentioned that the final trading day of September can be bearish, so the bulls desperately need to hold near-term support today. If not, next week could get rocky.
Mid-Market Update: Today’s pullback to support is keeping the bears in the game, and they are still trying to get a piece of the monthly win. Tomorrow’s action will be more important, however, as the bulls and bears will surely be battling as the month and quarter come to a close.
Pre-Market Update: Trading was choppy on Wednesday, but the market gained strength after a spike in the price of crude oil. News that major oil-producing nations had reached a deal to reduce production drove black gold higher and lifted the major indices. Additionally, the U.S. Senate cleared a bill to fund the government through the first week of December in order to avoid another possible shutdown.
Mid-Market Update: Investing in biotech companies with continued quarterly losses is always a risky endeavor, but the technical outlook and partnerships can play an important role in deciding when to get into a certain stock or option.
Pre-Market Update: The market held its gains on Tuesday, and the bulls recovered a significant portion of Monday’s losses. The monthly win is still up for grabs, however, and the bears are holding the lead with just three trading sessions left for September.
Mid-Market Update: The bulls are rebounding today to push the market’s near-term resistance levels, which previously served as support. Subsequently, volatility has settled back down, as the S&P 500 Volatility Index ($VIX, 13.19, down 1.31) is down 9% below the 13.50 level.
Buy to open the HALO November 13 calls (HALO161118C00013000) for a maximum price of $1.20.
Pre-Market Update: The bears got their second-straight Monday win on the Dow yesterday, making it two in a row following the pullback to support. Volatility ticked higher, although the bulls held resistance ahead of last night’s presidential debate. Both candidates will say they stole the spotlight, but Wall Street could care less, as money managers are just waiting for the next major market move.
Mid-Market Update: Although earnings season is still a few weeks away, it is always good to look ahead and do some early homework. I normally don’t take too many earnings trades, and I would like to be out of our current Goodyear Tire & Rubber (GT) trade ahead of its announcement, which is due to be released the last week of October. Nonetheless, I decided to take a look at the company’s numbers.
Pre-Market Update: The bulls were on a four-session roll, but they were sidelined by the bears during Friday’s market pullback. The bulls easily won the week and are trying to show monthly gains, as tech and the small-caps continue to work towards fresh 52-week and all-time highs. However, the bears are still holding the blue-chips and the broader market hostage heading into the final week of September.
Mid-Market Update: This week’s action has turned a shaky September into a mostly bullish month so far, providing the current gains hold into the closing bell. The Dow needs to recover the 18,400 level to turn green for the month, but, overall, the other major indices are showing gains.
Pre-Market Update: The bulls continued their run to prior resistance yesterday, with tech and the small-caps making new 52-week highs. Both indices outperformed the broader market as volatility fell below another key level of support.
Buy to open the GT October 33 calls (GT161021C00033000) for a maximum price of $0.80.
Mid-Market Update: Shares of Finisar (FNSR, $29.30, up $0.37) have been on fire since making a low of $15.21 back on May 19. The rebound can be attributed to back-to-back quarters of solid earnings reports, with the most recent quarterly results earlier this month coming in $0.08 ahead of estimates. Revenues were also higher at $341 million versus forecasts for a reading of $332 million. During the prior three quarters, earnings topped expectations by $0.04, $0.03 and $0.02.
Pre-Market Update: The market was flat ahead of the Fed’s decision on interest rates yesterday, but it rallied into the close after rates were left unchanged. Although the zombies gave no plausible excuse to raise rates, they did say in their meeting minutes that the case to raise rates had strengthened, and Wall Street is now looking for a possible hike in November or December.
Mid-Market Update: Today’s action has favored the bulls, as the major indices have traded in positive territory for most of the session leading up to the Federal Open Market Committee (FOMC)’s decision on interest rates this afternoon. However, the gains are slipping as we head into the second half of the action.
Pre-Market Update: While the gains were minimal, the bulls got the win on Tuesday, although the small-caps slacked for much of the session. The bears held resistance, but they are looking to do some damage today regardless of what the Fed decides to do about interest rates this afternoon.
Mid-Market Update: The bulls pushed the market to higher highs throughout the first half of trading today, but, heading into the closing bell, the bears are making another late-day appearance to keep the action close.
Pre-Market Update: The bulls showed strength throughout the first half of Monday’s session before the mid-day fade that extended into the closing bell. The bears did a little damage, but they were unable to contain the small-caps, which held positive territory throughout the entire trading day.
Mid-Market Update: Futures were forecasting a decent open this morning as I wrapped up last night’s research, but the major indices have faded heading into the second half of trading today. The biggest clues I’m looking for this week are for the bulls to get volatility below 15 and for tech and the small-caps to show continued strength.
Pre-Market Update: The bears took advantage of the quadruple-witching Friday last week, which is when index futures, stock index options, stock options and single stock futures expire on the same day. While these are normally bullish days, the selling pressure during the opening weakness carried over into the closing bell to keep the bulls at bay. However, despite the whipsaw action, the bulls got the weekly win.
Mid-Market Update: Today is September option expiration day, which is also known as a triple-witching session. Volume tends to be higher during these time periods, and trading has been bullish during these sessions 75% of the time over the past 15 years.
Pre-Market Update: The most hated rally in history marches on, as the bulls’ rebound efforts continued on Thursday. The bears were crying for a lot of fouls and, while they tried to hack away at the gains at the open, they eventually got blown out for the session. Like any five-game series, today’s action will determine this week’s winner, but the bulls have slightly more momentum heading into this morning’s open.
Take profits and sell to close the first half of the TMUS October 48 calls at current levels.
Mid-Market Update: Apple’s (AAPL, $114.90, up $3.13) surge past $113 to a nine-month high amid an otherwise bearish tape on Tuesday and Wednesday has helped the market hold at its support levels this week. Today’s push past $115 on continued momentum is also helping the bulls regain prior support levels.
Pre-Market Update: The bulls tried to hold down the fort on Wednesday following Tuesday’s bearish backtest, but they had trouble on some fronts, and the indices closed the session mixed. It remains to be seen if the back-and-forth action will continue or if one index will start to show more strength than the others. The bears haven’t gone anywhere, but they might be getting tired from the massive price swings we have witnessed this week.
Buy to open the TMUS October 48 calls (TMUS161021C00048000) for a maximum price of $0.90.
Mid-Market Update: This week’s see-saw action has continued through the first half of trading today, with the bulls rebounding from yesterday’s losses and pushing higher highs this morning. I mentioned previously that September option expiration day is this Friday and, with the FOMC meeting next week, traders should stay buckled up, as the whipsaw action will likely continue into next week.
Buy to open the CBI October 27.50 puts (CBI161021P00027500) for a maximum price of $1.30.
Pre-Market Update: The market moved more than 1% for the third-straight session on Tuesday and gave back all of Monday’s gains. Although the zombies are officially in a “quiet period” ahead of next week’s upcoming Federal Open Market Committee (FOMC) meeting, the slick-talking pros continue to chime in on interest rates and overall market conditions. The wacky action will likely continue throughout the week and into next, and the bulls need to hold Monday’s lows today or face further downside pressure.
Mid-Market Update: Although earnings season is right around the corner, I wanted to do some early research on Xilinx (XLNX, $52.86, down $0.26) while shares are near 52-week peaks.
Pre-Market Update: I often say that one day doesn’t make or break a trend, especially when one side battles back the following session. The bulls did exactly that during Monday’s rebound following another bearish attack at the open. The lack of follow-through by the bears and the recovery of prior support levels from last Friday’s pullback were bullish signs. Another pullback would likely lead to continued elevated volatility, but today’s action should provide better clues as to how the rest of the week will play out.
