Momentum Options

Pre-Market Update: I often say that the longer the trading range goes on, the bigger the breakout or breakdown will be. Following a tight trading range that lasted throughout the summer, the bears sent a chilling reminder to the bulls on Friday that they should not get too comfortable. The incredible run by tech, the small-caps and the overall market off of the late-June lows was begging for a pullback, and the one we saw on Friday caught Wall Street off guard.

Pre-Market Update: The bears spent Thursday roaming around Wall Street, while the bulls took a breather. The damage was minimal, but volatility picked up a notch, and today’s action will likely decide who gets the weekly win.

Pre-Market Update: The market was weak for much of Wednesday’s session, but it rebounded during the second half of trading to end mixed. The small-caps showed strength, while tech also closed in positive territory to offset the pullback in the other major indices.

Pre-Market Update: Tuesday’s action was choppy as traders returned from the three-day holiday weekend, but the bulls powered through the session to get the win. Tech led the action once again and closed at an all-time high. The small-caps slacked, but they showed resiliency by holding positive territory for much of the second half of trading.

Pre-Market Update: The market was choppy throughout last week as Wall Street anxiously awaited Friday’s nonfarm payrolls report. While near-term support and resistance was tested, the end-of-week action gave the bulls the weekly win, and it now appears that the odds of a Fed rate hike in September have lessened.

Pre-Market Update: I mentioned that the market could remain slightly volatile this week ahead of this morning’s jobs report, and the bulls did a good job of holding lower lows on the stretch below near-term support yesterday before the second-half rebound back into positive territory. The mixed close was not hard to imagine, but how the market closes ahead of this three-day weekend is much more important.

Pre-Market Update: The bulls and bears split the month of August, as the Dow closed lower by 32 points, while the S&P 500 dipped 3 points. Meanwhile, the Nasdaq gained 51 points, and the Russell 2000 advanced 20 points. I mentioned throughout last month that the small-caps were playing catchup and would need to lead the next leg higher. Despite Wednesday’s pullback, the bulls are still in charge.

Pre-Market Update: The bulls tried to rally the troops on Tuesday’s open, but the bears took over shortly afterwards and controlled the rest of the session. The late-day lows were blamed on weaker-than-expected economic figures and a rising dollar, according to the market pundits. However, the continued trading range is still the main theme of this market, although a possible breakout or breakdown could occur this week or next.

Pre-Market Update: Monday’s action brought some much-needed relief, as the bulls recovered short-term support and pushed prior resistance levels. The VIX showed a little nervousness on the open, but it settled down and recovered its near-term support levels. I often say that one day doesn’t make a trend, but the rebound from last Friday’s late-day weakness was a good sign for the few of us that are still long the market.

Pre-Market Update: The bulls are trying to wind down August with a victory, and they are slightly ahead of the bears with three trading days left in the month. Tech and the small-caps led last week’s rally to record highs before the market pullback later in the week. However, the subsequent damage to the blue-chips and the S&P 500 has given the bears renewed hope, as they are showing losses for August and are growling heading into September.

Pre-Market Update: The bears got their second-straight win on Thursday, although the bulls held near-term support. Volatility stayed elevated but held resistance. The financial sector traded higher ahead of this morning’s Fed comments and is holding slight gains for the week. Given the circumstances, today’s close should offer great clues as to how next week and the beginning of September might play out.

Pre-Market Update: The bears made some noise on Wednesday, with tech and the small-caps leading the move lower. Volatility also tested upper resistance, as Wall Street is preparing for Janet Yellen’s upcoming statements on Friday.

Pre-Market Update: The bulls pushed fresh record highs on Tuesday, but they gave back some of their gains into the close. The push past upper resistance was led by the small-caps, while the financial stocks also showed strength.

Pre-Market Update: The battle between the bulls and bears resulted in a Monday draw, with the major indices trading within another tight intraday range. This type of action could continue into Friday, but Fed Chair Janet Yellen’s comments on interest rates and the current state of the economy could lead to a possible breakout or breakdown.

Pre-Market Update: The bulls and bears split the wins last week, as the Dow and the S&P 500 struggled to hold their slight gains going into Friday’s session. Although the Nasdaq and Russell 2000 finished lower on Friday, they both ended the week slightly higher.

Pre-Market Update: The agonizing back-and-forth action continued this week, with the major indices making minor gains on Thursday. The weekly win is still up for grabs, as the bulls are only ahead slightly, but a Friday win would seal the deal.

Pre-Market Update: The market traded lower for the majority of Wednesday’s session leading into the latest Fed news. The minutes from July showed that there could be a rate hike in September or possibly December, but no action was taken yesterday. In the end, the rebound off of the lows and into positive territory gave the bulls the win.

Pre-Market Update: The back-and-forth action continued on Tuesday, as the bears held the bulls back from reaching higher record highs. The damage was minimal, but it raised some concern, as the VIX jumped 7%.

Pre-Market Update: The bulls finally had a strong Monday showing, as the blue-chips ended a four-week Monday losing streak with yesterday’s win. The other indices also performed well, and record highs and a major move above resistance were achieved. The VIX spiked a little on the open, but it was nothing serious, as the momentum continues to push the market higher.

Pre-Market Update: The market finished mostly higher last week, but the small-caps failed to pull their weight. The gains were slight, but they should keep the bullish momentum going. This week could produce much of the same push-and-pull action, and earnings will likely produce the biggest winners and losers on an individual basis. Overall, the bulls are trying to rally other sectors of the market, as retail stocks are starting to break out, and they will remain in focus this week.

Pre-Market Update: The bulls rebounded to push record highs on Thursday while clearing and holding key resistance levels. The major indices stayed strong all session long, and the small-caps are now the only group left waiting to join the party at all-time highs.

Pre-Market Update: The bears kept Wall Street confused on Wednesday, as the market traded within another tight range during the backtest to fresh support. The bulls tried to push higher highs and blue-sky territory, but they ran out of gas following the opening pop to fresh resistance.

Pre-Market Update: Add the Nasdaq to the club, as it was the latest index to tap record all-time highs in recent weeks. Although there was a little late-day weakness on Tuesday, the bulls showed some strength to get the win. The bears are looking for an opening, but they may have to wait for the small-caps to clear 1,300 before we can start looking for a possible near-term market top.

Pre-Market Update: The market pulled back on Monday despite some opening strength that allowed the S&P 500 to tap another all-time intraday high. The pullback in the Dow wasn’t too concerning, as a higher high than Friday was made. However, it was the third-straight Monday loss for the blue-chips that helped stall the rally from last week.

Pre-Market Update: While tech pushed higher highs, the “rounding top” on the Dow that I warned about coming into this month got worse last week. The lower lows and break below near-term support for the blue-chips on Tuesday helped speed up the selling pressure, and the bears cracked near-term support.

Pre-Market Update: The weekly battle between the bulls and bears comes down to today’s action as each side holds a piece of the pie. Given the current trading range, it’s doubtful a major move will come today, but it could, following the release of the jobs reports due out ahead of the open.

Pre-Market Update: All year long, the bulls and bears have walked the plank with each side only inches from falling into deeper peril before things suddenly get better. I often say one session doesn’t make a trend and the return of the longer-term one-year “trading range” is back still play.

Pre-Market Update: The bears gained additional supporters on Tuesday as more talking heads and slick talking pros abandoned the bullish vessel. While the waters are rocky, the bigger test for the bulls will be at the 50-day moving averages on continued weakness. I mentioned the start of August is historically weak and I’m neutral before getting aggressively short, for now.

Pre-Market Update: The market followed its most recent trading pattern with another mixed closed lead by Tech higher and the Dow lower. The biggest concern is that while the current divergence is happening in a widening trading range, the lower lows on the blue-chips remain a troubling sign.

Pre-Market Update: The bulls four-week win streak came to an end as the bears took a slice of the action. Despite the mixed action and three-week trading range, the technical outlook remains bullish. However, there are a few bearish signals, especially on the Dow, that are forming and something that remains a concern going into this week.

Pre-Market Update: Thursday’s session was choppy once again, and the major indices ended mixed after trading within another tight range. The Dow has been setting lower lows, while tech has been pushing higher highs. Today’s action could provide more of the same, but a higher close ahead of the weekend would be bullish for next week.

Pre-Market Update: It was another mixed session on Wednesday, as the bears stayed active and pushed the VIX past 13.50. The Federal Open Market Committee (FOMC) meeting was a non-factor, as it left interest rates unchanged.

Pre-Market Update: The bears are working overtime this week, as they managed to grab another slice of the Dow’s pie on Tuesday. The bulls were stingy and didn’t want to share, however, as they needed fuel to power to high highs. A good report from Apple (AAPL, $96.67, down $0.67) following the close should help keep the momentum in tech going following the $0.04 beat.

Pre-Market Update: The bears were a nag on Monday, as they took over the bulls’ camp for a day. The damage was minor, but volatility was slightly heightened on the backtest to fresh support. With second-quarter earnings heating up this week, the action should help sway the market to higher highs or possibly lower lows.

Pre-Market Update: The bulls have now extended their winning streak to four-straight weeks, and it has included records highs and a run to upper resistance. Tech showed strength throughout last week and helped pull the overall market into positive territory.

Pre-Market Update: Heading into today’s session, the bulls have a little wiggle room in their quest to get the weekly win. However, another negative close could give the bears a lift as the heat of the summer doldrums sets in. A split week wouldn’t be too bad, as it would still favor the bullish momentum, but we will have to watch out for any red flags going into today’s close to make sure higher highs are in store.

Pre-Market Update: The bulls made a strong statement once again on Wednesday following another run to record highs. The recent rally is the strongest in three years, and it is becoming more hated each day by those on Wall Street that have missed the train. While worries over a pullback persist, I have mentioned that July could stay strong all month long.

Pre-Market Update: The bears made a little noise on Tuesday, but they were unable to get a clean sweep, as the Dow closed higher for the eighth-straight session. The bulls held rising support, and they still look strong enough to push higher highs.

Pre-Market Update: The market edged higher on Monday ahead of a number of key earnings reports. International Business Machines (IBM, $159.86, up $0.08) should give the blue-chips a lift today, as the company posted higher revenue on an earnings beat after the close. Goldman Sachs (GS, $163.33, up $1.69) could help or hinder futures once Wall Street processes the company’s numbers, which are due out ahead of this morning’s open.

Pre-Market Update: The four-month trading range is officially over, as the bulls have put together a three-week winning streak for the first time since March. Volatility also flattened and is at its lowest levels of 2016, with 52-week lows in site.