Pre-Market Update: The bears got another victory on Wednesday but did little damage to the bulls, as near-term support held. With Wall Street on the sidelines, the tight trading range has been giving mixed clues. However, the market remains slightly bullish despite a disappointing earnings season overall.
Mid-Market Update: The bulls made a run to the market’s upper resistance levels during the first half of today’s session, but the bears are now making their move ahead of the close. The tight trading range the market has been in throughout the week will likely continue into Friday before we see a possible breakout or the start of a breakdown.
Take profits and sell to close the first half of the GM November 34 calls at current levels.
Pre-Market Update: The bears ended their three-session losing streak on Tuesday, but the bulls were able to hold the losses in check. The action stayed mired in another tight trading range, and volatility edged higher ahead of the rest of this week’s earnings news.
Mid-Market Update: Shares of Microsoft (MSFT, $47.65, up $0.03) have made a strong move this month ahead of Thursday’s earnings announcement. The move from $44 to roughly $48 has bullish traders betting on a push past $50, but we know what happens when too many people lean to one side of the boat.
The Stop Limit of $1.15 triggered on the QQQ November 110 calls.
Pre-Market Update: Despite Monday’s opening weakness, the market showed more bullish signs yesterday that higher highs might be in store this week. However, while the bears had trouble with near-term support, which continues to move up, they can still strike quickly.
Mid-Market Update: Futures were weak throughout the night and into this morning’s open. Much of the worry was over China’s gross domestic product (GDP) number, which showed that its economy grew at an annual rate of 6.9% instead of a number north of 7%.
The Stop Limit of $1.45 triggered on the QCOM November 60 calls.
Pre-Market Update: The bulls continued their hot October run last week and got another weekly win to clear the market’s major resistance levels. The bears tried to attack the small-caps and had a little success, as the index pulled back on Friday and finished the week slightly lower.
Mid-Market Update: October option expiration has been bearish over the past decade or so, as the bears have pushed the Dow lower on this day in eight of the past 11 years. The good news is that the bulls got a decent open today and are holding slight gains as we head into the finals hours of trading. One concerning sign is that the small-caps and tech are in the red, but the VIX is down to the 15 level. This sort of evens out the action and, overall, the market is looking slightly bullish today.
Buy to open the QQQ November 110 calls (QQQ151120C00110000, $1.10, down $0.03) at current levels.
Pre-Market Update: The bulls bounced back on Thursday to recover near-term resistance, as the VIX closed near a two-month low. However, expiration of the regular October options today could increase or decrease volatility heading into the weekend.
Mid-Market Update: Shares of Netflix (NFLX, $101.52, down $8.71) are down almost 8% today following its earnings announcement last night. The company reported a profit of $0.07 a share on revenue of $1.74 billion. The suits-and-ties were looking for $0.08 a share on revenue of $1.75 billion.
Buy to open the GM November 34 calls (GM151120C00034000, $0.83, up $0.01) at current levels.
Pre-Market Update: The bears got back-to-back wins for the first time this month following Wednesday’s market pullback. The bulls made some headway during the morning hours, but the close below key support levels suggests that there could be further weakness ahead.
Mid-Market Update: Shares of Walmart Stores (WMT, $61.08, down $5.65) are down over 8% after the company cut its sales guidance. Walmart said it expects its sales growth over the next three years to be between 3%-4% annually.
The Stop Limit of $1.30 triggered on the second half of the CSCO November 27 calls.
Pre-Market Update: Given the market’s rally this month, a slight pullback was to be expected at some point ahead of this week’s flood of earnings. The bears didn’t do much damage, however, as the bulls held near-term support after pushing higher highs early in yesterday’s session.
Mid-Market Update: Although the flow of earnings was light last week, there were two notable companies that missed Wall Street’s estimates. Former blue-chip stock Alcoa (AA, $10.09, up $0.01) made a nice run into earnings but disappointed after reporting a $0.07 miss and lower revenues. Domino’s (DPZ, $105.97, down $0.11) earnings also came in light by $0.07, and the company missed on revenue figures as well.
Pre-Market Update: The market traded in one of its tightest ranges since July on Monday, as traders treaded cautiously ahead of this week’s barrage of earnings announcements. Although the indices finished mixed, tech held up well following news of a merger between Dell and EMC (EMC, $28.35, up $0.49). The record tech merger between the two for $67 billion was rumored last week, but the official announcement was made just ahead of Monday’s opening bell.
Mid-Market Update: The bulls continue to show solid momentum, although today’s action has been a little sluggish. The Dow is looking to extend its current win streak to seven-straight sessions and, if successful, it would be the index’s longest winning streak for the year.
Pre-Market Update: The bulls got the Monday win last week and pushed the upper layers of resistance, while the S&P 500 Volatility Index (VIX) settled below 20. These were the first clues that an October rally could be brewing. The bears struggled to make lower lows throughout the rest of the week and failed to hold the upper downtrend channels of longer-term resistance.
Mid-Market Update: The bulls are looking to end a sweet week with another Friday win. If they’re successful, it will be their third-straight Friday victory and a good clue that higher highs are still in the mix.
Buy to open the QCOM November 60 calls (QCOM151120C00060000, $1.20, up $0.09) at current levels.
Pre-Market Update: The bulls are now grinning at the Negative Nancys that predicted a market crash coming into the month of October. While picking market bottoms and tops is never easy, trading ranges make timing even more difficult. However, following yesterday’s run past the market’s upper resistance levels, the bulls have shown that the late-August lows formed, for now, a temporary bottom.
Mid-Market Update: Futures were down overnight and stayed weak ahead of this morning’s opening bell. Fresh support has been holding, however, as Wall Street is anxiously awaiting the Federal Open Market Committee (FOMC)’s meeting minutes that are due to be released at 2 p.m. ET.
Pre-Market Update: The bulls continued their push towards the market’s upper resistance levels on Wednesday and appear to be closing in on a massive breakout. The bears are hoping to make one last stand before possibly rolling over, but they are becoming less scary as volatility continues to drop.
Mid-Market Update: Shares of Yum! Brands (YUM, $68.65, down $14.77) are down 18% today following yesterday’s dismal earnings announcement after the closing bell.
Buy to open the KSS November 42.50 puts (KSS151120P00042500, $0.95, up $0.05) at current levels.
Pre-Market Update: The bulls’ momentum was slowed on Tuesday, as the bears got wins on three of the four major indices. The gain in the Dow can be partially attributed to blue-chip stock DuPont (DD, $55.21, up $3.93), which gained nearly 8% after announcing that its CEO is set to retire this month.
Mid-Market Update: The bulls are trying to keep the momentum they have built up over the last two sessions, but the rally has stalled following an opening run to higher highs. Tech and the small-caps are leading today’s pullback, while a decline in biotech stocks is sending the major sectors lower.
Pre-Market Update: The bulls got the win on Monday, the VIX settled below 20 and the small-caps exploded to lead yesterday’s charge higher, all of which were positive developments. While it is still a little early to say that the bulls are all the way back, they are showing strength as the bears retreat.
Mid-Market Update: The bulls are showing continued Monday momentum following Friday’s turnaround rally, as they have cleared another layer of resistance during today’s session. The VIX is currently down 1.48 and below 20 at 19.46, and these bullish developments have the bears playing defense and the short-sellers covering.
Take profits and sell to close the first half of the CSCO November 27 calls at current levels.
Pre-Market Update: The market action was slightly bullish last week, although the trading range that began in September has now carried over into October. This month has been famous for scary crashes during the history of the stock market, but it has also been known as a “bear-killer” month.
Mid-Market Update: Futures were erratic throughout the night, and they continued to fluctuate ahead of this morning’s job report. Ultimately, they took a turn to the downside following the weaker-than-expected payroll numbers.
Pre-Market Update: The market ended mixed on Thursday after spending the majority of the session in negative territory. A late-day run by the bulls gave them a split, with tech leading the way. The bears pushed the VIX past 25, but volatility subsided on the rally off of the lows.
Mid-Market Update: I was bullish on Hilton Worldwide Holdings (HLT, $23.29, up $0.35) earlier this year, but I have stayed away from the iconic brand since February. We made 88% trading call options on the stock’s move from $26 to over $28 back then, but shares have suffered since.
Pre-Market Update: The bulls made a strong run past resistance on Wednesday and, for the most part, they were able to hold these levels into the close. The small-caps closed right on the 1,100 level, and the VIX closed below 25. The cross-current winds are still indicting that we are in a trading range, but the bulls showed some moxie that tilted the seesaw action in their favor.
Mid-Market Update: The major indices have stayed range-bound throughout September, but the backend of the month’s action will likely give the bears the monthly win. Today’s action is a different story, however, as the bulls are rallying off of the bottoms of those ranges. Although they were stretched during the pullback at the start of the week, significant support levels held, which was a slightly bullish sign.
Pre-Market Update: Trading was choppy on Tuesday, as the major indices stayed in a relatively tight range. The bears had some success testing support on the open, but the bulls made a run at fresh resistance before ending the session split.
Mid-Market Update: Next week is the official start of third-quarter earnings season, but there are a few noteworthy companies with offbeat fiscal years that are scheduled to report their numbers this week instead. One of them is spice-maker McCormick & Company (MKC, $80.68, down $0.82), which is scheduled to announce earnings on Thursday, Oct. 1, before the market opens.
Pre-Market Update: The bears made a run at the August lows on Monday, with tech and the small-caps leading the decline. The bulls are running out of time to save September from the bears, and they could be facing a rocky October as well, as volatility has picked back up.
Buy to open the SBUX November 50 puts (SBUX151120P00050000, $0.90, up $0.43) at current levels.
Mid-Market Update: I have talked previously about the new trading range that has been forming over the past few weeks following the late-August selloff. With today’s rebound, it is possible that the market will stay range-bound going into earnings season. This means that next week could stay choppy until we start to hear from corporate America the following week.
Pre-Market Update: The bears got the win last week despite the bulls’ best attempts to even the score on Friday. The weakness in the small-caps from the start of the session was a major concern, as was the late-day fade that dragged tech closer to a breakdown.
Mid-Market Update: I have talked previously about the new trading range that has been forming over the past few weeks following the late-August selloff. With today’s rebound, it is possible that the market will stay range-bound going into earnings season. This means that next week could stay choppy until we start to hear from corporate America the following week.
Pre-Market Update: The bears cracked another layer of support on Thursday, and they now have the bulls backpedaling. A knockout punch could be coming soon if the market stays wobbly into the weekend. The bulls rebounded off of the lows yesterday, but the action in the VIX turned bearish, with fear starting to rise on continued weakness.
Mid-Market Update: It’s never a good sign when a company’s stock is testing 52-week lows ahead of its earnings announcement. Shares of Pier 1 (PIR, $8.81, down $0.08) have tested a fresh 52-week low of $8.52 today, and the technical picture is a mess.
Buy to open the XLF November 22 puts (XLF151120P00022000, $0.66, up $0.15) at current levels.
Pre-Market Update: Wednesday’s back-and-forth battle was mainly controlled by the bears, as they continued their push towards the lower levels of support. The bulls battled back to keep the losses respectable, but they struggled to regain resistance.
Mid-Market Update: The bears are looking to do further damage and are challenging the second waves of support again today. I wrote previously that the two main clues we needed to watch for this week were the financials and transports, both of which are struggling.
Pre-Market Update: The bears controlled Tuesday’s session from start to finish following a break below the first waves of support. The bulls rebounded off of the lows late in the day, but the biotech bloodbath was too much to overcome. Recent price gouging on an AIDs drug that zoomed from $13.50 to $750 a pill caused a firestorm, and a mere tweet by a presidential hopeful slammed the sector.
Buy to open the SNE October 24 puts (SNE151016P00024000, $0.65, up $0.35) at current levels.
Mid-Market Update: Shares of Diamond Foods (DMND, $30.45, down $0.89) are down 3% and have fallen prey to today’s market pullback. The pullback broke the stock’s key support at the 50- and 100-day moving averages, and it is approaching $30-$29.50 and the 200-day moving average quickly.
Pre-Market Update: The bears were looking to wreak havoc on Monday to start the week, but the bulls held short-term support while making a run at the first waves of resistance once again. With just seven trading sessions left in September, the monthly win is still up for grabs, as both sides have taken a piece of the market pie.
Mid-Market Update: Futures were showing a strong start ahead of this morning’s opening bell, indicating the possibility that the bulls might push the first layers of resistance. Although higher levels were tested during the first half of today’s action, the bears have now joined the party, and the market is mixed in afternoon trading.
Pre-Market Update: The bulls lost another Monday session at the start of last week, but the market rebounded ahead of the Fed meeting to test the upper layers of resistance heading into Wednesday. The action looked bullish heading into the zombies’ decision on Thursday, but the market ended mixed as the Fed left interest rates unchanged.
Mid-Market Update: Futures were slightly higher after midnight, but they took a turn for the worse ahead of this morning’s open. I mentioned that September option expiration day has been bullish over the past decade, but the post-Fed market reaction is favoring the bears.
Pre-Market Update: The Fed disappointed some investors and pleased others on Thursday, as it left interest rates unchanged. The decision was disappointing to me because it leaves the debate open for the rest of this year and possibly into 2016.
Mid-Market Update: It has been nearly a decade since the United States stock market has felt the impact of an interest-rate hike. Within an hour or so, we will know if the Fed plans to keep everyone waiting for interest rates to rise or if they are still on standby.
Pre-Market Update: The bulls came within spitting distance of clearing the second layers of resistance on Wednesday ahead of today’s Fed decision on interest rates. The action continues to look bullish, and I’m hoping for the best of both worlds — a higher close today and a rise in interest rates. However, I realize most of the suits-and-ties are betting on a market pullback no matter what the Fed decides.
Buy to open the GLW November 19 calls (GLW151120C00019000, $0.60, up $0.11) at current levels.
Mid-Market Update: The market has traded in a tight, choppy range today ahead of tomorrow’s Fed decision on interest rates. The consensus is that the zombies will raise rates by either a quarter or an eighth of a point, and Wall Street is hoping that Janet Yellen says all the right things. She hasn’t spoken publicly in two months, so tomorrow should be interesting — to say the least.
Buy to open the CSCO November 27 calls (CSCO151120C00027000, $0.62, down $0.01) at current levels.
Pre-Market Update: The market regained some momentum on Tuesday following a rally that cleared the first layers of resistance. The action was steady throughout the session and into the closing bell despite a somewhat sluggish start. These were bullish signs, and they put the bears on defense. However, there are still multiple layers of resistance to clear before we can say that the market is healthy again.
Mid-Market Update: Although the Fed meeting on Thursday will garner the most attention, there are a few notable companies that will be reporting earnings this week. Third-quarter earnings season officially starts in early October, but companies with different fiscal years will be reporting before then as well.
Pre-Market Update: The bears won their third-straight Monday session, as they slowed the bulls’ momentum from last week. The losses held at support, with the market trading in a tighter range ahead of Thursday’s Fed announcement on interest rates.
Mid-Market Update: I was looking for continued momentum today following last week’s rebound by the bulls. Although the Dow snapped its Friday losing streak last week, the blue-chips continue to struggle in Monday sessions. Perhaps the action will change by the close, but it would be concerning if the market finishes in the red today.
Buy to open the PYPL January (2016) 40 calls (PYPL160115C00040000, $1.05, up $0.05) at current levels.
Pre-Market Update: The bulls got off to a strong start following the holiday weekend and pushed the first waves of resistance last Tuesday. Wednesday’s early-morning rally faded at the second levels of resistance before a late-day attack by the bears got previous support back in play.
Mid-Market Update: The Dow has fallen for three-straight days and in seven of the past eight Friday sessions. A win today might be a slightly bullish sign for the market heading into next week, and today’s close and the action in the VIX will be important as well.
Pre-Market Update: It is still too early to say if the bulls are building a floor of support, but Thursday’s action was a step in the right direction. The bears made an attempt to push lower lows late in the afternoon, but the market held its gains during the final hour of trading.
Mid-Market Update: Shares of Kroger (KR, $35.26, up $0.86) are making a run at their 200-day moving average ahead of the company’s earnings announcement tomorrow morning.
Pre-Market Update: The bears showed up late in the afternoon on Wednesday to push the major indices lower and get the market win. The bulls held the backup support levels that had served as prior resistance, but the failure to keep the momentum from Tuesday’s rally is concerning.
Mid-Market Update: The bulls made a run past the next layers of resistance this morning, but the bears have battled back, and the broad indices are now virtually flat on the day. The opening push looked promising, but a lower close today could keep the recent, volatile trading range in play.
Pre-Market Update: The bulls were ready to run following the long three-day weekend, as the market powered past several layers of resistance. The bears lost their grip on the VIX, but it’s too early to say if Tuesday’s rebound was the real deal.
Mid-Market Update: I know I covered a lot of information in this morning’s Pre-Market Update, but there is more to come as we get ready for the rest of September’s action. The charts and upside/downside targets for the major indices should prepare us to capture profits on the next major trend, but the gap-ups and gap-downs are really hard to trade when it comes to getting into the right option.
Pre-Market Update: August was a nasty month for the market, and the first week of September wasn’t much better. The bears won last month, as the major indices registered losses of 6%-7%. Last week’s losses averaged upwards of 3% across the board.
Mid-Market Update: I mentioned in yesterday’s Mid-Market Update that I would be profiling a number of directional and potential strangle option trades, so here is one I’m watching that I might take action on next week.
Pre-Market Update: The bulls did their best to get a clean sweep on Thursday and, while the broader market finished higher, tech and the small-caps gave back their gains. The technical clues were mixed as well, as both are showing that a breakout or breakdown will likely ensue in the coming weeks.
Mid-Market Update: Given the power of strangle option trades, and with the current volatility that may or may not settle down, I have been profiling a number of these type of trades in recent weeks.
Pre-Market Update: The bulls showed some moxie on Wednesday and got Wall Street excited again following a final-hour rally to fresh session highs. The impressive rally is still suspicious, but crucial pivot points are in play, and the rest of the week should end with either a bang or a bust.
Mid-Market Update: Futures were up ahead of this morning’s open as overseas markets rebounded somewhat, setting the stage for the bulls here in the United States. While the first-half bounce was a given, today’s close will be more important.
Pre-Market Update: The bears are feeling confident again as China’s economic woes worsen, while oil’s 8% drop to $45/barrel continues to whipsaw flip-flopping traders. The indexes finished below the first waves of support yesterday, and a break below last week’s lows could cause another round of panic selling.
Mid-Market Update: The nasty numbers for the month of August favored the bears, as the major averages sank 6%-7% on average, and September isn’t starting off much better.
Use a limit order and buy to open the MYL October 42.50 puts (MYL151016P00042500, $0.70, up $0.10) for a maximum price of $0.90.
Use a limit order to buy to open the KKD November 16 puts (KKD151120P00016000, $0.90, up $0.05) for a maximum price of $1.05.
Pre-Market Update: The bears were aggressive at Monday’s open, but the bulls fought back before losing the first out of five sessions this week. The small-caps showed strength, but they slipped below key support by the closing bell.
Mid-Market Update: The bears are trying to end the month with a bang, and the party started Sunday night while futures were showing a nasty open. However, the bulls held steady during the opening onslaught and managed to briefly push the small-caps into positive territory heading into afternoon trading.
Pre-Market Update: Panic selling hit Wall Street at the start of last week, as the major averages tested their October 2014 lows. The Dow breached its October low before holding crucial support into Monday’s close, while the S&P 500, Nasdaq and Russell 2000 all held their respective October 2014 lows.
Mid-Market Update: It is too early to tell if the V-shaped recovery off of Monday’s lows will continue into next week or if the current rally is a bear trap, but today’s action is slightly bullish.
Pre-Market Update: The market rebounded for the second-straight session following comments from one Federal Reserve official. New York Fed President William Dudley excited Wall Street after he said that the odds for a September rate increase seemed less compelling now than a few weeks ago. He added that the threat posed to the U.S. economy by the recent market turmoil was a concern.
Mid-Market Update: Shares of Smith & Wesson Holding Corp. (SWHC, $16.21, up $0.26) will be on the move in extended trading today following the company’s earnings release after the close.
Pre-Market Update: The bulls showed Wall Street why they can’t be given up on following Wednesday’s strong gains. Instead of folding in the final hour of trading, the market got stronger and enjoyed its best day in four years.
Mid-Market Update: The bulls are trying to clear resistance this afternoon following another strong open, but, again, the big concern is if the gains will hold into the close. Tuesday’s pullback off of the highs and the nasty finish served as additional reminders that we are still in a very fragile market environment.
Pre-Market Update: Wall Street was thanking China for cutting its interest rates again for the fifth time since November, as the talking heads stated this was the reason that the market was trading higher for much of Tuesday’s session.
Mid-Market Update: Futures were showing a huge gap-up this morning following Monday’s carnage, but there were concerns about whether or not the gains would hold. The first 30 minutes of trading were important, as the bulls showed strength and some follow-through. Although it’s still early in the day and there is another half of trading to go, the action looks bullish so far.
Pre-Market Update: Monday’s action was a test of will and nerves, as bullish and bearish traders took positions in a very volatile market. It is too early to say which side will be right, but the action has been both breathtaking and exciting. The wild price swings will likely be here to stay all week, so it is important that we remain patient until the dust settles.