Mid-Market Update: Futures were mixed throughout the night, but they turned positive ahead of this morning’s open. The bulls did well and pushed higher highs on better-than-expected economic news, but I warned that the bears like to show up on the day of July option expiration.
Buy to open the MGM August 24 calls (MGM160819C00024000) for a maximum price of $0.90.
Pre-Market Update: The bulls are on track for their third-straight week of gains following Thursday’s sweep of the major indices. The bears have laid low throughout the week, but they may come out of their caves today for July options expiration. However, volatility continues to sink and is forecasting that higher highs could be possible for a few more weeks.
Mid-Market Update: The bulls continue to push higher highs, and the “fluff” targets I listed previously for the Dow and S&P 500 are firmly in play. I have already started my weekend homework, as I believe that this week’s action could determine how long the current rally will last.
Take profits and sell to close the MS August 28 calls at current levels.
Buy to open the RMBS August 13 calls (RMBS160819C00013000) for a maximum price of $0.50.
Pre-Market Update: The bullish momentum the market has seen lately slowed on Wednesday, as the bears made an appearance during the overall lackluster day of trading. The good news is that volatility dropped below another key level of support, confirming possible higher highs.
Mid-Market Update: I mentioned in Monday morning’s Pre-Market Update that shares of Deutsche Bank (DB, $13.99, down $0.11) may be ripe for the picking. The stock came into the week just south of $13 after bottoming at $12.50 on Wednesday and Thursday of last week. I also mentioned that there could be a rebound to the mid-teens worth playing, and I wish I had gotten us into the call options I profiled.
Buy to open the RMBS August 13 calls (RMBS160819C00013000) for a maximum price of $0.50.
Pre-Market Update: The Dow and S&P 500 are garnering headlines this week following their moves to record highs, but the strength of the small-caps can’t be ignored. The Russell 2000 cleared major resistance, as did the Nasdaq, to give the bulls their third-straight win on Tuesday. However, volatility stayed slightly elevated for the second-straight session.
Mid-Market Update: The Dow was the latest index to break out to fresh all-time peaks following this morning’s run to 18,363. The other major indices are also showing strength, but volatility is slightly elevated as we wind down the final hours of trading.
Pre-Market Update: The bulls powered the major indices to fresh highs and all-time peaks during Monday’s push through upper resistance. Tech made a run past 5,000 before closing slightly below this level, and volatility rose slightly despite the bears’ non-showing.
Mid-Market Update: Futures were strong throughout Sunday night and into this morning’s open, and the S&P 500 has tapped fresh all-time highs at 2,141.22 today at the time of this writing.
Buy to open the CSCO August 30 calls (CSCO160819C00030000) for a maximum price of $0.62.
Pre-Market Update: The market was choppy throughout last week as Wall Street dealt with post-Brexit woes and Friday’s nonfarm payrolls report. Tech and the small-caps showed strength going into the end of the week, however, and that was a good clue that a continued rally would take place.
Buy to open the ACHN August 10 calls (ACHN160819C00010000) for a maximum price of $0.55.
Mid-Market Update: One of my favorite stocks is RAVE Restaurant Group (RAVE, $3.91, up $0.06), which is a company I have followed closely for four years.
Pre-Market Update: The bulls will be looking to get their second-straight Friday win today following this morning’s nonfarm payrolls report. Thursday’s results were mixed, as was the action for the week. While the bears are winning on some fronts, a solid session today would give the bulls the overall weekly win.
Mid-Market Update: The market is mixed this afternoon after pushing higher highs earlier this morning. Some of the nervousness can be blamed on tomorrow’s jobs report that is due out before the opening bell, although there have been a couple of reports that showed employment growth may have rebounded in June.
Buy to open the GDOT August 25 calls (GDOT160819C00025000) for a maximum price of $0.90.
Pre-Market Update: The bears tried to extend their winning streak to two-straight sessions, but they ran out of gas mid-day. On the other hand, the bulls pushed and cleared resistance into the close, with volatility falling below 15 again.
Mid-Market Update: Futures were forecasting weakness late last night, and they stayed under pressure into Wall Street’s opening bell this morning. The action turned positive mid-day, however, and the bulls are holding nice gains as we head into the close of trading.
Pre-Market Update: The market was weak throughout Tuesday’s session as a result of lower oil prices and concern about the Italian banks, according to the talking heads. The technical picture looked more promising, however, as support levels held before the rebound off of the lows into the close.
Mid-Market Update: Alcoa (AA, $9.21, down $0.34) shares tend to trend either higher or lower into the company’s earnings announcement and, while a nice pop usually occurs afterwards, the action after the news can be counterproductive depending on the results. The company has topped estimates during the past two quarters by $0.05 and $0.02, respectively, but it missed by $0.06 and $0.03 during the two previous quarters. This makes an earnings trade in the name risky.
Pre-Market Update: The bears tried their best to cause wide-spread panic on Wall Street last Monday, but a quick “double bottom” that went unnoticed by the suits-and-ties was made in the process. The rest of the week was controlled by the bulls, as the indices made average daily moves of 2% before relaxing on Friday ahead of the three-day weekend. With the first half of the 2016 action behind us, the next six months promise to be just as exciting, with continued whipsaw action and explosive volatility.
Mid-Market Update: I mentioned in this morning’s Pre-Market Update that the bulls had a little more work to do to get the month of June to turn green. The action has turned higher today following a sluggish start to the session, and the bulls are giving the bears all they can handle as they go for their third-straight daily win.
Pre-Market Update: The bulls have now recovered roughly 80% of the Brexit losses, and they will be looking to get back to even ahead of the upcoming July 4 U.S. market holiday. The bears are looking to get back into the game as well following three days of heavy losses for their side, and today’s close will likely set up the action heading into next week.
Mid-Market Update: I mentioned in this morning’s Pre-Market Update that the bulls had a little more work to do to get the month of June to turn green. The action has turned higher today following a sluggish start to the session, and the bulls are giving the bears all they can handle as they go for their third-straight daily win.
Buy to open the CSCO August 29 calls (CSCO160819C00029000) for a maximum price of $0.60.
Pre-Market Update: The bulls won their second-straight session in spectacular fashion yesterday to position themselves for what could be a positive June. The Dow and S&P need to generate gains of roughly 1% today to ruin the bears’ spirits, while Tech and the small-caps need to make up 2%. Traders will be jockeying for position today ahead of the monthly and quarterly close, so the action should remain elevated on the last trading day of June.
Buy to open the SWKS August 65 calls (SWKS160819C00065000) for a new maximum price of $2.55.
Mid-Market Update: The bulls are pushing session highs as we make the turn into the second half of trading today. The major indices have cleared another layer of resistance, and I would like to see the current levels hold into the close.
Buy to open the SWKS August 65 calls (SWKS160819C00065000) for a maximum price of $2.30.
Pre-Market Update: While Tuesday’s relief rally looked promising, it is too early to tell if Monday was “the” temporary bottom from the Brexit woes, as one day doesn’t make a trend. However, the oversold bounce cleared resistance, and volatility plummeted 21%. One famous talking head said yesterday that the VIX doesn’t tell investors anything, but the suits-and-ties certainly don’t know how to trade volatility.
Buy to open the WATT August 12.50 calls (WATT160819C00012500) for a maximum price of $1.60.
Mid-Market Update: I mentioned previously that this week could see some whipsaw action on lower volume as the dust settled from last week’s Brexit drama, and futures confirmed that a temporary bottom may have been made on Monday, as they were strong throughout the night and held into this morning’s open.
Sell to close the second half of the MSFT July 48 puts at current levels.
Pre-Market Update: While the market exhibited both bullish and bearish clues during Monday’s continued pullback, the losses incurred over the last two trading days have made for the worst two-day decline since last August. However, the mini “selloff” has been orderly by most standards. Surprisingly, volatility was lower yesterday, but I mentioned in Monday’s Pre-Market Update that a quick recovery could be in store based on this year’s past performance.
Mid-Market Update: To no surprise, the backup support levels I mentioned in this morning’s Pre-Market Update are now in play as a result of today’s 2% pullback. I also talked about the potential for another 3%-4% slide to make up for the overseas markets, but, interestingly, volatility has been calmer than it was on Friday, as the VIX has traded lower for much of today’s session.
Take profits and sell to close the first half of the MSFT July 48 puts at current levels.
Pre-Market Update: The bulls started last week off with a strong performance that pushed the market’s upper resistance levels and tried to establish fresh support, but the bears took advantage of the sketchy Fed-speak on Tuesday and Wednesday to keep the two-month trading ranges intact. This was expected, as the Brexit vote was also an overhang going into Thursday. However, what wasn’t expected was a push past resistance ahead of the news.
Mid-Market Update: The first word I got on the Brexit vote came nearly four hours after the market closed on Thursday, and the race was tight, with 51% of the U.K. electing to stay and 49% voting to leave. This was an early indication that a donnybrook would occur throughout the night. My initial reaction was that the vote was closer than the market expected and that a possible selloff was in play.
Sell to close the IRBT July 38 calls at current levels.
Sell to close the INO July 12 calls at current levels.
Pre-Market Update: The market stayed strong from the start of trading into the closing bell on Thursday as Wall Street took early bets on a “positive” outcome from the Brexit vote. There weren’t many bearish bets being made that Britain would leave the European Union ahead of yesterday’s vote, although I mentioned that there could be a sell-the-news event afterwards. The good news is that the Brexit wait is over, and today’s action will most likely influence next week and possibly July.
Buy to open the MS August 28 calls (MS160819C00028000) for a maximum price of $0.85.
Buy to open the VIAV September 7 calls (VIAV160916C00007000) for a maximum price of $0.55.
Mid-Market Update: The bulls are pushing fresh weekly highs today as voting on the “Brexit” vote winds down overseas. The polls will close at 5 p.m. EST, but the result as to whether Britain will leave or stay in the European Union won’t be known until 3 a.m. EST on Friday.
Pre-Market Update: The bulls tried to extend their winning streak to three-straight sessions yesterday, but they fell shy of doing so following the weakness that arose during the final hours of trading. The nervousness was to be expected, however, with the results of the Brexit vote pending ahead of today’s action.
The $1.10 Stop Limit was triggered on the WATT August 12.50 calls.
The $0.50 Stop Limit was triggered on the VIAV September 7 calls.
Mid-Market Update: Market participants spent the first half of today’s trading session waiting for and listening to Fed Chair Janet Yellen’s comments regarding last week’s Federal Open Market Committee (FOMC) meetings. After reading her prepared statement, she continued to stress caution about the jobs market and the potential “Brexit” in the Q&A session that followed.
Pre-Market Update: Despite continued “Brexit” worries and concerns relayed by Fed Chair Janet Yellen, the bulls held their momentum for most of Tuesday’s session to get the overall market win. Although some damage was done to the small-caps, the bears failed to gain any traction against rising support.
Mid-Market Update: Market participants spent the first half of today’s trading session waiting for and listening to Fed Chair Janet Yellen’s comments regarding last week’s Federal Open Market Committee (FOMC) meetings. After reading her prepared statement, she continued to stress caution about the jobs market and the potential “Brexit” in the Q&A session that followed.
Pre-Market Update: Wall Street woke up in a good mood on Monday following the overseas market action, and the rebound rally held into the close. Although the indices finished well off of their highs, key resistance levels were tested. The bears aren’t likely to go away quietly during of a week packed full of market-moving events, but they did lose some of their momentum.
Buy to open the IRBT July 38 calls (IRBT160715C00038000) for a maximum price of $0.65.
Mid-Market Update: Aside from this week’s events concerning the Federal Reserve and the “Brexit” vote, there are a few notable companies that are scheduled to report their latest numbers this week. Second-quarter earnings season officially starts in early July, but companies with different fiscal years will be reporting up until then.
Pre-Market Update: The bears wrapped up a volatile week of trading with Friday’s market pullback to get the weekly win. The bulls were caught backpedaling throughout last week as lower lows came into play, and this week promises more of the same volatility, with Fed news here in the United States and the “Brexit” vote overseas.
Mid-Market Update: Futures were choppy throughout the night, but they turned negative ahead of the opening of overseas markets. The action improved slightly ahead of the start of trading on Wall Street to open flat, but the bears have the lead at halftime.
Pre-Market Update: The bears pushed lower lows on Thursday, but the bulls refused to go away quietly. While the market did manage to make a trip into positive territory following the nasty open, the highs were lower than those that were made during Wednesday’s session. Lower lows and lower highs are usually bearish signals, but bullish clues are still in the mix as well.
Buy to open the WATT August 12.50 calls (WATT160819C00012500) for a maximum price of $1.15.
Buy to open the VIAV September 7 calls (VIAV160916C00007000) for a maximum price of $0.55.
Mid-Market Update: Shares of Nike (NKE, $53.27, down $1.04) have been in a downtrend since they peaked north of $65 in mid-March. The 52-week high is just above of $68, and the 50-day moving average looks nasty. Trouble started in mid-April when the 50-day moving average breached the 200-day moving average, which formed a “death cross.” This is usually a bearish setup, but I often mention that “stretch” levels can come into play, which is what we are currently seeing in the market.
Pre-Market Update: To no surprise, the Federal Open Market Committee (FOMC) held interest rates steady without an increase on Wednesday. Coming into 2016, Wall Street was factoring in up to three or four more rate hikes for 2016, but I have mentioned all year that the financial stocks would be lucky if they got just one.
Mid-Market Update: While I would have loved to have been able to trade the backtest to and breach of the 50-day moving averages, the gap-downs and whipsaw action this week have made it extremely difficult to open fresh trades. I warned coming into the week that I wouldn’t be able to get a good feeling about how the market would trade over the rest of the month until Wednesday rolled around.
Pre-Market Update: The Doobie Brothers are still touring, and they are coming to my home state in early July. Given the recent trading range, I feel that this morning’s headline — also the title of one of their albums — is appropriate, and it fits my mood this week. Watching the computer and looking at hundreds of charts has been a tedious task, but I see some big paydays in the weeks ahead.
Mid-Market Update: I spent the majority of last night and this morning looking for potential New Trades, and I have 15 serious candidates on my watch list. Wal-Mart Stores (WMT), Best Buy (BBY), Microsoft (MSFT), Energous (WATT) and Caterpillar (CAT) are in the top five for possible trades that look to be in play. However, the last thing I want to do is risk money when I’m unsure of market direction. With the S&P still within a massive trading range, anything could happen following Wednesday’s FOMC update.
Pre-Market Update: The bulls weathered Monday’s storm, but their home base at higher highs is being threatened once again. I mentioned that yesterday’s opening hour would be an interesting test for the bulls, and they did not fail to impress.
Mid-Market Update: Apple’s (AAPL, $97.61, down $1.22) Worldwide Developers Conference (WWDC) is set to kick off shortly, and the event has some on Wall Street bustling with enthusiasm. The talking heads are calling the WWDC a big deal and want to hear strong announcements. While some analysts have already come out to say that investors should “buy any dip” in the stock, shares look weak on a technical level and, personally, I would be running for the hills.
Take profits and sell to close the first half of the GLD July 125 calls at current levels.
Also, raise the Stop Limit from $1.60 to $1.85 on the second half of the GLD July 125 calls.
Pre-Market Update: The three-week winning streak for the bulls ended last Wednesday as the bears pushed the market’s backup support levels. “Brexit” concerns, oil and the financial stocks were the main culprits that were blamed for the pullback — at least, that’s what the talking heads were saying.
The Stop Limit at $0.55 was triggered on the QQQ July 112 calls.
Mid-Market Update: Futures were showing that a backtest to support would be in play today, and those levels have been stretched following this morning’s opening pullback. Going into the finals hours of trading, backup support levels are holding, but the close will be important.
Pre-Market Update: Thursday’s pullback represented a tug-of-war between the bulls and bears that left slight hints about how today’s action might play out. I don’t expect a breakout or breakdown from the mini trading ranges that are forming until maybe next week. However, today’s action could provide pivotal clues as to how we should prepare for new trades over the next few weeks.
Mid-Market Update: Although higher highs have been made this week, today’s sluggish action was being forecasted during the overnight session. Futures were showing losses of up to 0.5% throughout the night, and that’s pretty much where the major indices stand now.
Pre-Market Update: The bulls showed some follow-through on Wednesday and pushed key resistance levels in their bid to return to all-time highs. The bears are still lingering, but they seem reluctant to engage. I’m still expecting a strong surge towards the market’s upper resistance levels, and that could come this week or next.
Buy to open the GLD July 125 calls (GLD160715C00125000, $1.22, up $0.42) for a maximum price of $1.30.
Take profits and sell to close the first half of the TLRD July 15 calls at current levels.
Set a Stop Limit at $1.25 on the second half of the position.
Mid-Market Update: I mentioned in Monday’s Mid-Market Update that there were a few earnings trades I was looking at this week, and one of them was a bearish trade on VeriFone Systems (PAY, $20.69, down $7.54). I was also looking at taking a bullish position in Dave & Buster’s Entertainment (PLAY, $45.89, up $4.03).
Take profits and sell to close the first half of the TLRD July 15 calls at current levels.
Set a Stop Limit at $1.25 on the second half of the position.
Pre-Market Update: The bulls pushed higher highs on Tuesday, but the lag in tech spoiled the session, as most of the overall gains were lost into the closing bell. Volatility was calm until the final hour of trading, with the bears pushing resistance. The mixed action still looked bullish, but, as always, I’m watching the warning signs.
Mid-Market Update: Shares of Zillow (Z, $32.08, up $1.75) are surging today following the company’s $130 million settlement with News Corp’s Move Inc. and the National Association of Realtors. The two-year-long legal battle over trade secrets could have cost the company nearly $2 billion in damages. The fact that the company won’t have to pay the 90%+ difference between these two figures was a huge windfall, and it puts the issue to rest.
Pre-Market Update: The slick-talking pros spent some time debating why the market surged on Monday, with roughly half of them saying that the dovish comments by Fed Chair Janet Yellen were bullish for the market. Anticipation is building for the June Fed meeting that may or may not result in an interest-rate hike, but Yellen instead reiterated that gradual rate hikes are likely appropriate. The other half of the suits-and-ties were citing the spike in oil for the rally past resistance.
Mid-Market Update: I profiled a number of possible long and short trade setups on gold and the financial sector based on observable resistance and support levels in this morning’s Pre-Market Update. This afternoon, I also want to scan the week’s upcoming earnings announcements for a possible trade, although they are a little trickier to identify.
Pre-Market Update: The bears pushed lower lows almost every morning throughout last week, but the bulls powered back each afternoon to test higher highs, excluding Friday’s session. The Dow fell 66 points, while the S&P 500 eked out a slim gain. The Nasdaq added 9 points, and the Russell 2000 jumped 14 points, or over 1%, for the week.
Mid-Market Update: Futures were tight throughout the night and offered no clues about how the action at today’s opening bell might fare. However, the action turned slightly bearish following the release of this morning’s jobs report, as only 38,000 jobs were created in May.
Pre-Market Update: Thursday’s session showed signs of lower lows and higher highs, which kept Wall Street on its heels, and the action could continue to heat up with today’s jobs report and the other economic news that will hit the tape going into Friday’s close.
Mid-Market Update: After opening lower this morning, the major indices battled back into positive territory by the close. The S&P 500 spent the last several days pushing up against 2,100 level, but, each time it did, the bears were there to claw it back down again.
Pre-Market Update: Wednesday’s action carried over from Tuesday’s session, and the major indices traded within a tight range to give the bulls the overall market win. The bears did make some noise, however, as they pushed lower lows at the open before rolling over. The bulls then went on to test higher highs into the close after holding support, but it was another dead-money session.
Mid-Market Update: Futures were choppy ahead of the opening of overseas markets this morning, and they were mostly weak heading into Wall Street’s current matrix. However, the mixed signals from Tuesday’s session resulted in the market holding both support and resistance, as the major chess moves continue to unfold this week.
Pre-Market Update: Much of Tuesday’s drama was focused on the Dow’s 100-point gain in May and, while the bears tried their best to steal a slice of the pie, the bulls did enough into the close to get a clean sweep for the month.
Mid-Market Update: Although we are in a holiday-shortened trading week and first-quarter earnings season has come and gone, there are a number of high-profile names scheduled to report over the coming days that will be worth watching — and possibly worth trading.
Pre-Market Update: The bulls have weathered the storm in May, and they could come out of it smelling like roses. The “sell in May and go away” theme was bearish for much of the month, but it eventually turned into a buying frenzy. Today is the last trading day of the month, so the score still hasn’t been settled. However, I have a good feel for where there market could be going and how we are going to play the next few weeks of action.
Pre-Market Update: Thursday’s action was a little tighter following a bullish week and run to resistance. The bears are still lingering and looking to get aggressive ahead of the three-day weekend. The bulls will be looking to hold support.
Mid-Market Update: I am still traveling this afternoon, but I wanted to provide you with an update to our current trades, as our two remaining positions have been stopped out today.
Pre-Market Update: Due to some unexpected changes to my travel plans at the last minute, this will be an abbreviated update. The good news is that both of the Stop Limits for our current positions held into the close yesterday, and I do not have any adjustments to make to our trades at this time.
Mid-Market Update: The news concerning the Zika virus continues to grow, and I’m working on a refreshed bullish story, which I hope to have ready for you on Thursday.
Pre-Market Update: We tried our best to play yesterday’s rebound rally and the surge past resistance with iShares Russell 2000 ETF (IWM, $112.94, up $2.28) calls, but our orders ultimately went unfilled. The pros are now questioning whether the blast higher was a short-covering rally or a dead-cat bounce, which are fancy terms meant to confuse the rookies like you and I, but it is trouble playing ball with them sometimes.
Mid-Market Update: I got little sleep last night from the time I hit the pillow to the time I woke up, but, as I always say, “A dollar never sleeps,” and it has been a busy morning as well.
Pre-Market Update: The major indices traded within a tight range on both sides of the ledger on Monday before closing lower. However, the losses were held in check, as the continued trading range carries on.
Mid-Market Update: Futures were showing strength throughout the night, but the action at the opening bell this morning was much more subdued. Fed-speak and economic news have kept traders’ bullish emotions in check, as the market has shown some weakness so far today.
Pre-Market Update: The bears pushed fresh lower lows last week to crack levels last seen in late March and early April. However, the bulls once again showed signs of life on Friday, which has me feeling semi-bullish going into mid-June, although the six-week trading range I have been warning about is still in play to some degree.
Buy to open the INO August 11 calls (INO160819C00011000) for a maximum price of $1.30.
