Momentum Options

Pre-Market Update: The market showed signs that it was trying to form a bottom on Monday despite the continued pullback in the small-caps and transports. After enduring the early selling pressure, the major indices gained strength into the close as volatility edged slightly lower. The bulls held support, while the bears struggled to hold resistance to keep the current trading ranges intact.

Pre-Market Update: Last week, the market suffered one of its worst runs in months, as the bears took advantage of tax-loss selling season, tumbling oil prices and a nervous Fed. The bulls tried to maintain the bottoms of the mid-October trading ranges, but they were stretched as selling pressure picked up steam into Friday’s close.

Pre-Market Update: The bulls snapped their three-session losing streak to test resistance on Wednesday and, while the bears made a little noise on the open, they looked tired following their week-long binge. The market has a lot of ground to make up today or it could face a losing week inside of the continued trading range that has lasted since mid-October.

Pre-Market Update: The bears got their third-straight win on Wednesday, although the bulls were able to hold the market’s lower levels of support. The major moving averages were slightly stretched, but they are still in bullish setups despite the worries on Wall Street. However, the bulls need to make a stand today or the action could get a lot worse due to panic-selling.

Pre-Market Update: The bulls spent Tuesday’s session defending key support levels, which ultimately held for the second-straight day. The bears are showing strength, but much of the losses have come as a result of the backtest to support after Friday’s rebound rally. Volatility spiked to higher levels than we saw on Monday, which indicates that we still need to be cautious, as the “fear gauge” cleared resistance.

Pre-Market Update: The market sputtered from the start of trading on Monday until the closing bell, but the major indices were able to finish the session off of their intraday lows. There was some buying activity into the close, as support held on the pullback, but volatility stayed elevated. I mentioned that the whipsaw action could continue going into next week, but that could be the perfect opportunity to add new bullish or bearish trades.

Pre-Market Update: The bulls rebounded on Friday get the weekly win following a backtest to support. Fed-speak, economic news, overseas stimulus shenanigans and geopolitical tensions all worried Wall Street, and the bears took advantage of the weakness. However, the bears could be ready to roll over once the current trading ranges are resolved, as the charts remain bullish.

Pre-Market Update: The bears did some technical damage on Thursday, as the market’s key technical support levels came into play. The bulls held the 50-day moving averages, but the Dow and S&P 500 failed to hold their 200-day moving averages. However, this morning’s jobs report could either cause additional selling pressure or a possible relief rally.

Pre-Market Update: The back-and-forth action continued on Wednesday, as the market closed lower following a backtest to support. Volatility picked up slightly during Fed Chair Janet Yellen’s speech yesterday, and Wall Street seemed to be a little nervous ahead of tomorrow’s nonfarm payrolls report.

Pre-Market Update: The market cleared its major resistance levels on Tuesday despite the release of weaker-than-expected economic news after the open. The ISM manufacturing index reading came in at 48.6 for November, which was its worst level in six years. This was well below expectations for a print of 50.5, and it may have spooked some of the Fed heads. However, the bulls brushed the bad news off to push higher highs into the closing bell.

Pre-Market Update: The bulls lost their second-straight Monday following an opening push to near-term resistance. The bears controlled the majority of the session, but they did little damage, as near-term support and the current trading range held.

Pre-Market Update: The bulls got the overall market win last week despite the slight pullback in the blue-chips. The small-caps and tech have led this month’s rally, but the bears are within striking distance of getting at least a market split for the month, with today being the last trading session of November.

Pre-Market Update: The Dow is lower by 10 points for the week, while the S&P is down less than a point. The Nasdaq is up a twelve-pack while the Russell is up 23 points, or 2%.

As a reminder, I won’t be publishing the Mid-Market Update this afternoon due to today’s shortened session. The market will close at 1 p.m. (EST). I could have a New Trade or Profit Alert but, if you don’t hear from me by noon EST, have a good Black Friday and weekend!

Pre-Market Update: The S&P 500 Volatility Index ($VIX, 15.93, up 0.31) was a hot potato on the open with the hotness reaching 17.21 on the opening weakness. The bulls stayed cool, however, as they held the 17.50 level for the third-straight session and for the fifth-straight close. A close above 15 would confirm higher near-term highs.

Pre-Market Update: It was a see-saw battle on Monday with the bears ultimately getting the overall market win to start the week. The losses were limited as the bulls battled back into the closing bell while holding near-term support for the most part. Today’s action will likely heat up with a number of high-profile companies reporting earnings.

Pre-Market Update: This week historically favors the bulls but volatility could remain slightly elevated in a shortened holiday week. Volume could also dry up and lead to wilder price swings as the suits-and-ties take extended vacations around the U.S. Thanksgiving holiday.

Pre-Market Update: The S&P 500 Volatility Index ($VIX, 16.99, up 0.14) spiked to a high of 18.26 on the opening weakness before holding 17.50-17 throughout the session. A move above 17.50 into the weekend would be a slightly bearish development. A close below 15.50-15 are the confirmation levels we are looking for to confirm possible higher market highs

Pre-Market Update: The bulls reclaimed resistance on Wednesday despite the release of the latest Federal Open Market Committee (FOMC) minutes, which showed that a possible December interest-rate hike is still in the cards.

Pre-Market Update: The bears held resistance and the indices’ major moving averages into Tuesday’s close, as the market pulled back to finish flat for the day. The bulls are holding support, however, and they are trying to regain momentum, but volatility remains elevated.

Pre-Market Update: The bulls got the win on Monday despite new geopolitical concerns, while the VIX fell back below 20. One day doesn’t make a trend, but the action looked bullish following a weak attack by the bears at the open.

Pre-Market Update: The bears snapped their six-week losing streak last week while cracking several layers of support on the major indices. The damage was severe, and the Dow and S&P 500 fell back into negative territory for the year. This week promises to be just as volatile, as geopolitical events are likely to come into play.

Pre-Market Update: The bears made a statement on Thursday, and the market took one step forward before taking two steps back. The action worsened into the closing bell, as speeches by various Fed Heads indicated that they seem split on a December rate hike. Some of the zombies are still hawkish, while others remain dovish despite the recent babble and worry over an almost certain quarter-point hike.

Pre-Market Update: The bears returned to their winning ways on Wednesday, as the market pulled back for the fifth time in the last six sessions. The losses were limited, however, as near-term support held, while volatility stayed elevated.

Pre-Market Update: The bulls snapped a sloppy four-session losing streak with Tuesday’s mixed win, although tech closed slightly lower on the day. Apple (AAPL, $116.77, down $3.80) weighed heavily on the sector, as shares dropped 3% and fell back below their 200-day moving average on concerns that the company’s supply chain has weakened.

Pre-Market Update: The bears controlled Monday’s action from start to finish, as the major indices pulled back by 1% each. The bulls made a final-hour rally off of the lows, but they failed to hold the market’s key support levels, which got slightly stretched. One day doesn’t make a trend, but volatility is rising, and more Fed officials are scheduled to speak later this week.

Pre-Market Update: The bulls stretched their winning streak to six-straight weeks despite a sloppy finish last Friday. Volatility stayed slightly elevated amid the “Fed-speak” and mixed earnings, and the bears will try to hold near-term resistance this week.

Pre-Market Update: The bears tried once again to crack fresh support on Thursday, but the small-caps saved the day by closing slightly higher. The bulls showed some strength off of the morning lows to keep the action respectable, but both sides have been waiting for this morning’s nonfarm payrolls report.

Pre-Market Update: The market pulled back on Wednesday following more rhetoric from the Fed about a possible rate hike in December. The zombies wanted to sound tougher in their stance on interest rates and to make their smoke-and-mirror show less predictable. However, it remains to be seen whether Fed Chair Janet Yellen was crying wolf again or if her words will be the real deal come December.

Pre-Market Update: The market shrugged-off some early morning weakness on Tuesday to push the market’s next layers of resistance. Although the major indices faded from their intraday highs into the closing bell, continued momentum is setting the market up for a run towards all-time highs.

Pre-Market Update: The bears got a rare Friday win, but the bulls won last week overall to cap off a fabulous October. However, the recovery from the late-August lows wasn’t enough to get all of the major indices back into positive territory for the year. The blue-chips and small-caps are still slacking, but they are making higher highs and higher lows nonetheless. This is a positive sign for the bulls, but there are other concerns that need to be addressed, as volatility is still slightly elevated.

Pre-Market Update: The bears got a rare Friday win, but the bulls won last week overall to cap off a fabulous October. However, the recovery from the late-August lows wasn’t enough to get all of the major indices back into positive territory for the year. The blue-chips and small-caps are still slacking, but they are making higher highs and higher lows nonetheless. This is a positive sign for the bulls, but there are other concerns that need to be addressed, as volatility is still slightly elevated.

Pre-Market Update: The bulls tried to keep their momentum going on Thursday following Wednesday’s test to the market’s upper resistance levels, but the major indices ultimately pulled back amidst a lack of buying conviction. The bears didn’t do much damage, however, as the fresh support levels that had served as prior resistance held, and the VIX stayed below 15.

Pre-Market Update: The bulls were testing the market’s upper resistance levels ahead of Wednesday’s Federal Open Market Committee (FOMC) statement, but the initial rally faded following the news that the Fed elected to keep interest rates unchanged. The zombies said they want to see further improvement in the labor market and inflation move back towards their 2% target.

Pre-Market Update: The bears got their second-straight win after holding the bulls underwater throughout Tuesday’s session. The small-caps led the way lower, but they held key support, as did the VIX.

Pre-Market Update: The bears won their first Monday session in a month yesterday, although tech was showing a slight gain at the close of trading. The overall action stayed within a tight trading range as the VIX elevated slightly.

Pre-Market Update: The bulls got their third-straight weekly win, as the market cleared several layers of resistance throughout last week. The bears have rolled over in October, with volatility fading throughout the month. There is still a week of trading to go and another full slate of earnings before the month ends, but all signs are pointing toward a continued rally.

Pre-Market Update: The bulls bounced back in a big way on Thursday after clearing another layer of resistance. The major indices stayed strong throughout the session, with volatility collapsing below 15 again. Tech earnings after yesterday’s close came in better than expected and should help extend the rally into today.