Mid-Market Update: I was hinting this morning that today could be bullish, and the market is up with another half of the session to go. I mentioned that if today didn’t go the bears’ way, next week could be bullish. However, the way the following week plays out will have a major effect on our trades, as we are holding June expiration options.
The Stop Limit at $0.30 was triggered on the AAPL June 87.50 puts.
Sell to close the first half of the MYL June 35 puts at current levels.
Sell to close the MSFT June 47 puts at current levels.
Pre-Market Update: While today’s headline might be scary, it reflects my thoughts on the current market action. Thursday’s pullback can be tied to a variety of factors, but there was still some bullish action going on despite the negativity. The bears have controlled the week so far, and the lower trading ranges for the major indices are in play. However, if the bulls battle back today, next week will be interesting — to say the least.
Mid-Market Update: I mentioned previously that this week would be heavy on the news front and that major market moves were likely. My updates have been lengthy over the last few days because the trading action has been exciting to follow, but it has been much harder to write about and trade.
Pre-Market Update: I felt that the headline above was appropriate for this morning’s Pre-Market Update considering the action during yesterday’s trading session, which included wild price swings, mixed results among the major indices and some bullish and bearish signs. Obviously, the Fed minutes were in play, and volatility was heightened, so let’s go figure it out in simple terms, or at least try to do so.
Mid-Market Update: I have been talking about the weakness in retail stocks over the past few weeks, and one company that will face a crucial test after Thursday’s close is Gap (GPS, $17.07, down $0.26).
Pre-Market Update: The bears did some major damage on Tuesday, especially heading into the closing bell, and the continued trading range from mid-April is on the verge collapsing. Of course, the bulls have shown resiliency over the past month, but yesterday’s action may have confirmed that lower lows could be coming quickly.
Mid-Market Update: Futures were rising steadily throughout the night, and Dow futures were up by triple-digits at one point. However, they turned south ahead of this morning’s open. So far, the momentum pendulum has been swinging on both sides of the ledger, but today’s action has been a little more volatile given the price fluctuations before the opening bell.
Pre-Market Update: Apple (AAPL, $93.88, up $3.36) shares rallied nearly 4% on Monday following the news that Warren Buffett’s Berkshire Hathaway had disclosed a new position in the company. Berkshire reported that it owned over 9.8 million shares of Apple as of the end of the first quarter, or the end of March.
Mid-Market Update: First-quarter earnings season is winding down, but there will still be some major announcements throughout the rest of May and into June. Second-quarter earnings starts in early July, so the market will largely be driven by economic and geopolitical concerns as well as technical support and resistance levels over the next six weeks.
Pre-Market Update: The bears pushed lower lows on Friday despite opening slightly higher. It was the third-straight week of losses for the bulls, and the Dow and S&P 500 closed below their 50-day moving averages. Volatility also closed above a key level of resistance, and the “head-and-shoulders” technical pattern I warned about a few weeks ago has finally developed.
Mid-Market Update: Gold ($GOLD, $1,264, down $14) continues to push support at $1,250 and its 50-day moving average after tapping a high north of $1,300 earlier this month. The yellow metal has fallen in six of the past nine sessions, and it faces risk to $1,225-$1,200 on continued weakness.
Pre-Market Update: The market was choppy and somewhat subdued on Thursday following two back-to-back days of 1% moves. The major indices stayed within a narrow range yesterday, although they traded on both sides of the ledger.
Mid-Market Update: I am traveling this afternoon and am unable to write my regularly-scheduled Mid-Market Update. However, I want to update you on the two New Trades that I issued in this morning’s Pre-Market Update.
Pre-Market Update: The see-saw action on Wall Street continued on Wednesday as the bears rebounded from Tuesday’s drubbing to return the favor. Near-term support held, however, as the bulls played defense throughout the day before being saved by the closing bell.
Mid-Market Update: Gold ($GOLD, $1267.30, up $1.90) is trying to rebound today after falling in five of the past six sessions. The run towards resistance at $1,300 earlier this month was the result of a breakout from the previous March highs near $1,280.
Pre-Market Update: The bulls showed some moxie on Tuesday and regained some of their lost momentum as they pushed the market’s upper resistance levels. Volatility also slid to its lowest level in two weeks, although the bears held support. Lost in the shuffle was that the market could be on the verge of re-entering the upper trading range from early April that has limited upside.
Mid-Market Update: I’ve mentioned previously that shorting a strong stock is hard to do. However, when a Wall Street darling falls out of favor on weaker fundamentals and the technical picture starts to look weak, it gets me excited.
Pre-Market Update: The market moved within a tight range on Monday, and the major indices traded on both sides of the ledger following the pullback in the price of WTI crude oil. While there were other factors in play, the 2% drop in oil caught traders off guard, and it did not offer any real clues on how the current trading range might unfold.
Buy to open the POT June 15 puts (POT160617P00015000) for a maximum price of $0.60.
Mid-Market Update: One of my favorite stocks to trade, Krispy Kreme Doughnuts (KKD, $20.94, up $4.08), has entered into a merger agreement to be acquired by a unit of JAB Holding Company for $21 a share. The deal is valued at nearly $1.35 billion for the buyout.
Pre-Market Update: The bulls rebounded to get a clean sweep on Friday, as the market ended the week on a positive note. The bears still won the week, however, and they did some damage after forcing a lower trading range into play, which could become very volatile at some point this month.
Mid-Market Update: Heading into this week, I mentioned that there was a good chance that a fresh trading range could develop and that lower lows could be made. Today’s action was crucial in determining whether or not the market’s backup support levels would come into play following this morning’s jobs report and, while support is holding to some degree, it is getting stretched.
Pre-Market Update: The market traded within a tight range on Thursday ahead of this morning’s jobs report from the Bureau of Labor Statistics. Lower lows came into play, but today’s session should provide additional clues as to how next week is likely to play out.
Mid-Market Update: My watch list is full of bearish index option trades, including put options on the PowerShares QQQ ETF (QQQ) and the iShares Russell 2000 ETF (IWM), as well as call options on the iPath S&P 500 VIX Futures ETN (VXX). Additionally, I’m looking at bearish trades on Potash (POT) and Cisco (CSCO), but I’m bullish on Facebook (FB) as long as $115 holds.
Pre-Market Update: It was another bearish day on Wall Street yesterday, and the major indices retreated to their backup support levels. There wasn’t much of a rebound off of the lows either, as the bulls wasted their energy at the open.
Mid-Market Update: The back-and-forth action has continued this week, as the major averages have traded within a 1% range. However, the bears are looking to register their second-straight daily win with an hour left in today’s trading session.
Pre-Market Update: The bears did their part to keep the current trading range intact yesterday, as they recovered the bullish gains on Monday and then some. The lower highs and lower lows are becoming a fresh worry that is signaling additional weakness ahead.
Buy to open the MSFT June 47 puts (MSFT160617P00047000, $0.60, up $0.14) at current levels.
Mid-Market Update: Monday’s action was a good sign that a “right shoulder” was developing in the market as it rebounded off of Friday’s lows. At this point within the potential “head-and-shoulders” pattern, it is too early to predict how long it might take the right shoulder to form, but today’s pullback confirms that one is trying to take shape.
Pre-Market Update: The bulls rebounded on Monday to get the bears off of their backs, and they were able to regain key resistance levels for the market that had previously served as support. The higher close to start the week was bullish, as was the fact that the VIX fell back below 15. The rest of the week promises to be exciting as earnings season reaches its peak, and Friday’s unemployment numbers could cause some fireworks as well.
Mid-Market Update: Whole Foods Market (WFM, $29.00, down $0.08) will announce its latest quarterly numbers following Wednesday’s closing bell, and analysts are looking for a profit of $0.41 a share on revenue of $3.74 billion.
Pre-Market Update: The bulls were looking strong throughout April, but the historical end-of-month weakness helped the bears earn a slice of the pie. The bullish momentum has clearly been lost, and many of the suits-and-ties are now saying that they “predicted” the pullback.
Mid-Market Update: In this morning’s Pre-Market Update, I talked about stretch levels of support that were being tested, but it is crucial not to overreact to them. I also noted that one-day price movements do not make a trend, but, more importantly, I mentioned that there could be downside risk ahead.
Pre-Market Update: Thursday’s action started off bearish before it turned slightly bullish, and then things got a lot worse into the closing bell. The lower lows were a negative development, and volatility broke above key levels of resistance.
Take profits and sell to close the first third of the position in the INO May 10 calls at current levels.
Mid-Market Update: The bulls are working on a continued rebound today and, this time around, tech stocks are joining the ride higher. Monster earnings results from Facebook (FB, $118.95, up $10.06) have propelled shares to fresh 52-week and all-time highs. The company beat Wall Street’s estimate by a whopping $0.15 with earnings of $0.77 a share. Revenue came in at $5.38 billion versus expectations for $5.26 billion.
Buy to open the BAC June 15 calls (BAC160617C00015000, $0.54, down $0.04) at current levels.
Pre-Market Update: The bulls weathered another bearish storm on Wednesday with help from the blue-chips, although the market closed mixed. Financial stocks showed some strength following the Federal Open Market Committee (FOMC)’s decision to leave interest rates unchanged yesterday, but they gave back most of their gains by the close of trading. This also helped the market salvage the pullback in tech, but the action remains choppy.
Mid-Market Update: Earnings season always results in big moves in various stocks, either to the upside or the downside. I mentioned a couple of stocks in this morning’s Pre-Market Update that got crushed after announcing their numbers, and there are a number of other wild price swings happening elsewhere in the market as well.
Sell to close the HALO May 13 calls (HALO160520C00013000, $0.15, down $0.15) at current levels.
Pre-Market Update: The bulls tried to regain their footing on Tuesday, but they were once again dragged down by tech. The financial stocks showed strength, although the bears could get aggressive today following the disappointing quarterly numbers from Apple (AAPL, $104.35, down $0.73) and Twitter (TWTR, $17.75, up $0.66).
Mid-Market Update: I talk about the S&P 500 Volatility Index ($VIX, 13.98, down 0.10) daily because it is one of the technical tools I use to analyze the market. There are many others indicators I use to gauge market direction in addition to the VIX, but I want to cover a possible trade that is on my watch list this afternoon.
Pre-Market Update: The bears were aggressive on Monday, but their attempt to crack support failed once again. The bulls did a mighty job of battling back, although they ran out of time before they were able to see green.
Mid-Market Update: I mentioned previously that the earnings flow would be heavy this week, as a third of S&P 500 companies are scheduled to report their latest results. While companies in other sectors will be announcing earnings as well, tech will be my main focus given the technical setup on the Nasdaq.
Pre-Market Update: The bulls pushed higher highs and showed some signs of continued momentum last week. However, the bears are starting to wake up from a mid-February nap, which should keep things interesting. The major uptrend lines are showing that the action remains bullish, but another mini trading range has developed heading into the last week of April.
Mid-Market Update: Futures were forecasting a mixed open when I went to press this morning despite a number of high-profile earnings misses following Thursday’s close.
Pre-Market Update: The bears had one of their better days of the month during Thursday’s market pullback. On the other hand, the bulls have been trying to build upon last week’s momentum, but they have fallen shy of short-term resistance. The earnings that were released after the close yesterday were disappointing, and backup support could come into play as the news weighs on the major indices.
Mid-Market Update: The market was a little choppy for the first hour or so this morning, but, with fresh support holding, the bulls are making a move towards higher highs.
Pre-Market Update: The first half of Wednesday’s action was slightly choppy despite futures showing a positive open. The bears’ attempt to mount any momentum and make lower lows stalled ahead of Wall Street’s lunch break, as rising support held. The bulls controlled the second half of the action while pushing higher highs, but they continue to struggle with near-term resistance.
Buy to open the HALO May 13 calls (HALO160520C00013000, $0.65, $0.05) at current levels.
Mid-Market Update: The market was a little choppy for the first hour or so this morning, but, with fresh support holding, the bulls are making a move towards higher highs.
Pre-Market Update: Despite the negative tone, the bulls performed well on Tuesday’s open and went on to push higher highs. The bears made a little intraday noise and took a stab at fresh support before rolling over to play dead. Today’s action could provide good clues as to whether higher highs are in store the rest of the week or if the market has reached a short-term peak.
Mid-Market Update: In yesterday’s Mid-Market Update, I talked about International Business Machines (IBM, $143.11, down $9.42) and Goldman Sachs (GS, $162.55, up $3.53). While these two behemoths are trading in opposite directions today, there are a number of other high-profile companies that are scheduled to report their quarterly results this week.
Pre-Market Update: The Dow got all the headlines on Monday, as the index closed above 18,000 for the first time since last July. I’m more focused on other things, however, and I mentioned that International Business Machines (IBM, $152.53, up $0.81) could slow the market’s momentum if the company disappointed Wall Street with its quarterly results. While the company absolutely surprised analysts with a beat on the top and bottom lines, a tempered forecast sent shares tumbling 5% in after-hours trading.
Buy to open the WFM May 33 calls (WFM160520C00033000, $0.48, down $0.10) at current levels.
Mid-Market Update: Futures were forecasting a weak open throughout the night while I was wrapping up my weekend research, and global markets were in the red. Much of the weakness was due to the drop in the price of oil, as the zombies across the world decided against a production cut in their latest meeting. To make a long story short, the bulls have blown off the negative reaction and the drop in oil prices today to push the market higher.
Pre-Market Update: The bulls showed their usual April strength last week as the market broke out to fresh highs for the year. Friday’s slight pullback in the major indices caught all the media attention following another tight session. However, what was missed, or not reported, by the talking heads was the strength in the small-caps and the deflating VIX.
Mid-Market Update: I talked about Halozyme Therapeutics (HALO, $11.98 up $0.16) on a technical level in today’s Pre-Market Update, but I wanted to profile the stock’s fundamental story for you this afternoon as well.
Pre-Market Update: The battle between the bulls and the bears ended in a draw on Thursday, as the market seesawed within a tight trading range before ending pretty much flat. Although it was a boring session overall, the consolidation going into today’s session was a good sign following a strong week. With regular April monthly options expiring after the close today, there could be some movement in what has traditionally been a bullish day for the market.
Buy to open the HALO May 13 calls (HALO160520C00013000, $0.60, up $0.05) at current levels.
Mid-Market Update: Following Wednesday’s big move past major resistance levels, the market has traded in a tight range for much of today’s session. This is a bullish sign, as the levels that were cleared yesterday now represent fresh support.
Pre-Market Update: The bulls registered back-to-back wins for the first time this month following Wednesday’s surge past resistance. The slicking-talking pros were betting against the financial stocks coming into first-quarter earnings season, but I had a more favorable view. The group has let the market down in the past, but the two-day rally has been a relief following a tight trading range.
Buy to open the WATT May 12.50 calls (WATT160520C00012500, 0.50, up $0.05) at current levels.
Mid-Market Update: JPM’s blast past $60 today is a great sign that the market could be breaking out of its two-week trading range — as long as the financial stocks can hold their momentum going forward.
Buy to open the NUE May 52.50 calls (NUE160520C00052500, $0.43, up $0.17) at current levels.
Buy to open the INO May 10 calls (INO160520C00010000, $0.60, up $0.05) at current levels.
Buy to open the NUE May 52.50 calls (NUE160520C00052500, $0.26, up $0.06) at current levels.
Pre-Market Update: Like a broken record, the bulls made another run at the market’s major resistance levels on Tuesday, but they fell shy of clearing those hurdles. The repeat process looked a little brighter yesterday, however, as the financial stocks led the rally alongside a continued rebound in metals.
Mid-Market Update: While I’m anxious to get us into new trades, the outlook for the rest of April remains unclear, although it has historically been a bullish month. The last thing I want to do is rush into our next batch of trades with only mixed signals to work with.
Buy to open the WMT May 65 puts (WMT160520P00065000, $0.70, down $0.20) at current levels.
Pre-Market Update: The bulls tried to rebound on Monday following last week’s losses, as they made another push at resistance. However, the bears held court to keep the market’s mini trading range intact, and first-quarter earnings season is now underway.
Mid-Market Update: This afternoon, I want to quickly cover the homebuilder sector of the market. One of the easiest ways to follow the sector is by tracking the SPDR S&P Homebuilders Index (XHB, $34.17, up $0.27). The index has made a strong recovery off of its February low of $27.72, and it is challenging its 200-day moving average on today’s pop past $34.
Sell to close the HTZ May 11 calls at current levels.
Pre-Market Update: Last week was a rocky, choppy one for the market, which was to be expected ahead of the start of first-quarter earnings season. I mentioned last week that there could be a tight trading range with some downside weakness, but the good news is that the market’s backup support levels held.
Mid-Market Update: One of my favorite sectors to trade is biotech, but it also one of the riskiest. Small biotech companies can be strapped for cash without many promising drugs in their pipelines. Larger biotech companies struggle with growth and generic copies once patents run out. However, the hunt for winners and pitfalls for losers is what makes the sector so dynamic to trade due to the wild price swings in the stocks.
Pre-Market Update: The bears continued their push towards lower lows on Thursday, as they kept the bulls underwater throughout the session. Volatility also exploded to levels not seen since mid-March, but the VIX held resistance. Today’s session could go a long way in determining how next week’s action might play out as earnings season begins.
Mid-Market Update: The gains the market registered following yesterday’s Federal Open Market Committee (FOMC) minutes have been erased today, and the financial stocks are leading the pullback. All 10 sectors in the S&P 500 are trending lower, as are the transportation stocks, and the VIX is back above 15.
Pre-Market Update: Following some early-morning weakness on Wednesday, the bulls snapped themselves out of a two-day funk to push the market’s prior resistance levels. However, the bears’ stalled attempt at pushing support has kept a tight trading range in play that could continue into earnings season, which starts next week.
Buy to open the INO May 10 calls (INO160520C00010000, $0.55, up $0.10) at current levels.
Mid-Market Update: The bulls are enjoying today’s rebound, but one area of the market that is flashing a warning sign is the transportation sector. I have been mentioning the Dow Jones Transportation Average ($TRAN, 7,740, down 32) in recent weeks, and I’ve explained how the blue-chips in the Dow Jones tend to mirror the transports.
Pre-Market Update: The bears have been challenging the first layers of support this week, and they continued their assault on the market’s key technical levels on Tuesday. Volatility also spiked, which was a warning sign, but the VIX hasn’t given the red light to start loading up on bearish positions.
Buy to open the MRK May 57.50 calls (MRK160520C00057500, $0.33, up $0.04) at current levels.
Mid-Market Update: While next week marks the start of first-quarter earnings season, there are a few names reporting earnings this week that are worth watching for possible bullish or bearish trades.
Pre-Market Update: The bears snapped a four-session Monday slide with yesterday’s win and backtest to support. The bulls made a little noise on the open, but they struggled to get back to even for the remainder of the day.
Mid-Market Update: Friday closes on the Dow have been strong over the last month, as the blue-chips were up during three of the last four Friday sessions. The bulls will likely extend that streak this week as long as today’s recovery holds into the close.
Pre-Market Update: The bulls ended March with their biggest win since last October, as the market rallied throughout the month following its stay in a tight trading range. Friday’s no-joke unemployment numbers were a relief to Wall Street, and the start of April showed additional follow-through.
Buy to open the HTZ May 11 calls (HTZ160520C00011000, $0.60, down $0.15) at current levels.
Buy to open the INO May 10 calls (INO160520C00010000, $0.40, up $0.10) at current levels.
Mid-Market Update: Friday closes on the Dow have been strong over the last month, as the blue-chips were up during three of the last four Friday sessions. The bulls will likely extend that streak this week as long as today’s recovery holds into the close.
Pre-Market Update: The bears made an appearance at the start of Thursday’s session and basically finished it off as well, as the bulls withdrew into the close. The major indices did push higher highs before fading, although volatility rose ahead of the release of this morning’s jobs numbers.
Mid-Market Update: I mentioned previously that the market could stay in a tight trading range today ahead of Friday’s unemployment report. With tomorrow being April Fools’ Day, anything could happen, but I’m expecting higher highs into next month.
Pre-Market Update: The bulls made a “follow-through” statement on Wednesday as they pushed towards the market’s upper resistance levels. The bears made a dent in the gains, and the major indices finished off of their intraday highs, but they are now dealing with fresh support and higher highs.
Mid-Market Update: Shares of Energous (WATT, $10.36, down $0.66) surged nearly 14% on Tuesday to close in double-digit territory following its stay a tight trading range.
Pre-Market Update: Fed Chair Janet Yellen used just the right words to please both Wall Street and Main Street, as the broad market closed at its highest level of the year on Tuesday. The trading range that lasted for about a week felt like an eternity to some traders, especially in today’s fast-paced world. However, this morning’s headline sums up exactly what we have been doing while we build out our next batch of winning trades.
Buy to open the ORCL May 42 calls (ORCL160520C00042000, $0.55, up $0.03) at current levels.
Mid-Market Update: The market has been trading in a tight range for much of today’s session as investors await Janet Yellen’s speech this afternoon. The assumption was that the markets would be quiet ahead of the Fed Chair’s upcoming comments on interest rates and the economy, and that has played out like spades.
Pre-Market Update: It wasn’t pretty, but the bulls successfully registered their fourth-straight Monday win as the blue-chips closed higher. Tech slacked, but the other major indices tackled positive territory following a scrum that lasted for much of the session. The bears got a small victory of their own, as volatility closed above a key level of resistance.
Buy to open the RMBS May 14 calls (RMBS160520C00014000, $0.45, flat) at current levels.
Mid-Market Update: Futures were forecasting a slightly higher open throughout the night and into the morning as the bulls tried to regain last week’s lost momentum. The action has been choppy, however, and the major indices have traded on both sides of the ledger so far today as we head into the second half of the session.
Pre-Market Update: The bulls rebounded to get the overall win last Thursday following a final-hour push into positive territory. The bears still got the weekly win, which snapped a five-week slide, and they appear to have a little more momentum, as the S&P 500 closed lower. Volatility spiked to its highest level in nearly two weeks, but it still stayed below key resistance levels.
