Momentum Options

Pre-Market Update: The bears are getting greedy, as they stretched their winning streak to five-straight sessions and pushed another layer of support during Tuesday’s pullback.

Pre-Market Update: The bears continued their assault on Wall Street and did some serious damage during Monday’s pullback. Worries over the price of oil ignited fears of a continued decline, as black gold dipped below $50 for the first time in over five years.

Pre-Market Update: The market was volatile on Friday — the first trading day of 2015 — after finishing 2014 with solid gains. The S&P 500 Volatility Index ($VIX, 17.79, down 1.41) closed above 15 to start last week, which was perhaps an omen that support would get stretched.

Pre-Market Update: Volatility was elevated heading into the second half of trading on Wednesday, which was a good indication that the bears might show up. The bulls did manage to push another record high with the small-caps, but the late-day drubbing has near-term support in play.

Pre-Market Update: The bears made another appearance on Tuesday and stole the bulls’ lunch to get a clean sweep on the major indexes. Near-term support held, but the fading momentum needs to be watched for further signs of a possible decline.

Pre-Market Update: The bulls failed to get a clean sweep on Monday, as the bears won the blue-chip battle. Volatility was also back in play heading into the end of the year. Overall, however, it was a bullish session and fresh records highs were still pushed.

Pre-Market Update: Wall Street closed shop early last week for the holidays, and most traders took extended vacations on Friday instead of fighting with the bulls.

Pre-Market Update: The Christmas Eve rally on Wednesday produced another round of fresh highs, but the gains faded into the close of the holiday-shortened session. Despite the pullback, the bulls held positive territory for the most part.

Pre-Market Update: The bulls stretched their winning streak to five-straight sessions on Tuesday, but Tech was weak and biotech stocks weighed heavily on the Nasdaq. The broader market and small-caps showed strength, and volatility stayed subdued, both of which were good signs.

Pre-Market Update: The bulls ended a three-session Monday slide, as the blue-chips pushed all-time high territory again. The S&P recorded its 50th all-time closing high of the year, but the bigger story was the small-caps.

Pre-Market Update: The week of December option expiration turned out to be one of the most volatile and exciting of the year. The bulls and bears were tossing triple-digit blows on the major indexes with dizzying 2%-3% intraday swings.

Pre-Market Update: The bulls had jaws dropping on Wall Street on Thursday, as the V-shaped recovery has caught traders off-guard, just like I was hoping for. Even better, the market rally got stronger as oil tanked below double-nickels ($55).

Pre-Market Update: Low inflation is on the Fed’s list of worries, and the bulls climbed the wall of worry to clear resistance while holding their gains into the close. It was like a plot out of a Hollywood movie, as the Fed remained soft and kept rates unchanged.

Pre-Market Update: It has been a while since I have used the word “epic,” but it might be the best adjective to describe Tuesday’s action between the bulls and bears. The triple-digit moves in the Dow and the nearly 100-point swing on the Nasdaq provided enough drama to make matters worse for the bulls. The bears cracked another level of support and are now close to causing mayhem on Wall Street.

Pre-Market Update: The bulls wasted all of their energy on Monday’s open following a dead-cat bounce in oil overnight. The slide in crude led to a test to double-nickels ($55/barrel), which was a level not seen since the summer of 2009.

Pre-Market Update: On Fridays, I often play an office tune to reflect the current market sentiment as a way to wind down the week. I have spun some classic tunes over the years, and some of my favorites are “Squeeze Box,” “Jailbreak,” and this one, of course, “I’m Your Captain” from Grand Funk Railroad.

Pre-Market Update: The bulls showed some muscle on Thursday, but I worried about their fast start, as the monumental gains faded into the close. A good showing again today would be bullish for next week, but the bears still look hungry.

Pre-Market Update: The “Nervous Nellies” and talking heads were visibly upset with yesterday’s market pullback and once again jumped off of the bull bandwagon. I mentioned that this week’s action would shake out the weaker hands and encourage more Wall Street pros to take early vacations, but support was stretched, and that demands respect.

Pre-Market Update: The market went for a wild ride on Tuesday, as the bulls and bears exchanged blows in one of the more volatile sessions we have seen in weeks. The action was intense, which is why I prepared a detailed list of things to watch yesterday. It helped keep my emotions in check (and hopefully yours as well), as the game plan I covered is falling right into place.

Pre-Market Update: The bears made another appearance to start the week again, as the market fell for the second Monday in a row. The losses were less than 1%, overall, but the bulls need to be careful not to give back too much ground.

Pre-Market Update: The bulls extended their winning streak to seven-straight weeks, but tech lagged and finished lower last week. The Dow and S&P 500 showed strength, and the small-caps rebounded to end the week in positive territory.

Pre-Market Update: The market finished slightly lower on Thursday as Wall Street was waited for this morning’s Nonfarm Payrolls report. The indexes are mixed for the week heading into today’s session, with the weekly win still up for grabs. The bulls will be looking for a blowout number to signal further strength in the economy, while the bears are hoping for a number south of 200,000 jobs added.

Pre-Market Update: The bulls got their second-straight win following Wednesday’s trip into continued blue-sky territory. Small-caps led the way higher, but the rally was broad-based. Today’s session could be flat ahead of Friday’s Nonfarm Payrolls report.

Pre-Market Update: The bulls got back on track to push fresh all-time highs on Tuesday. Further choppiness is likely in store for the rest of the week with Friday’s nonfarm payrolls report in the mix. However, the blue-chips are on the verge of cracking 18,000, which could be the tide that lifts all boats.

Pre-Market Update: The Negative Nancy’s were back in force on Monday following the bears’ first Monday blue-chip win in a month. The other indexes struggled as well, with small-caps leading the way lower. The talking heads jumped back off of the bull wagon, but it won’t be long before the train leaves the station for higher highs.

Pre-Market Update: The bulls wrapped up their sixth-straight week of gains and dominated November’s action with all-time highs. The market clearly has momentum, and December is historically a bullish month. However, the Russell 2000 did finish slightly lower by less than a point and remains the wild card.

Pre-Market Update: The bears took three of the four major indices on Tuesday and got a rare win in November. The bulls kept the losses in check after tapping another fresh all-time high on the open, but the pullback to lower lows was a slightly bearish signal.

Pre-Market Update: The bulls continued their winning ways on Monday, as Tech and the small-caps led the way higher. The bears tried to make some noise, but their efforts stalled at fresh support.

Pre-Market Update: The bulls wrapped up their fifth-straight week of gains from the mid-October lows following Friday’s breakout to fresh all-time highs. The bears made an appearance after volatility became elevated on the Fed minutes, but the back test to support held throughout the week.

Pre-Market Update: The market rebounded on Thursday to test resistance and prior highs, as the momentum held into the close. The mini trading range from last week continued but with higher highs. Today’s close could offer clues on how next week will play out, though the action continues to favor the bulls.

Pre-Market Update: The bulls did well recovering from the lows on Wednesday, but the action in the small-caps was either a warning sign or the last time this year Wall Street might have been able to catch the train to higher highs.

Pre-Market Update: The market continued its historic run on Tuesday, as the bulls pushed fresh all-time highs and left Wall Street speechless while fund managers continue to wait for a pullback. The traders that took advantage of the October pullback, like us, continue to enjoy happy hour, but it’s important that we pace ourselves and continue to watch the action.

Pre-Market Update: The bears made some noise on Monday, but the result was another failed test at slowing the bulls’ momentum. The broader market rebounded to post slight gains, while Tech and the small-caps suffered losses and languished near short-term support.

Pre-Market Update: The bulls brushed back the bears’ feeble attempts to change momentum last week, as the charge to all-time and decade-highs continued. The major indices were higher for the fourth-straight week and are showing steady gains in a historically bullish month.

Pre-Market Update: The bulls looked good on paper following Thursday’s pop to new highs. However, the late day fade and rebound did some damage, as the small-caps failed to recover.

Pre-Market Update: The bulls continued to push fresh highs on Wednesday even as the market ended mixed. The bears got slight wins on the broader market, while the bulls took Tech and the small-caps. The strength in the Russell was the real story, as the small-caps finally cleared a key level of resistance.

Pre-Market Update: The lack of action in Tuesday’s session favored the bulls, as the major averages continued their record run into blue-sky territories. Wall Street is having a hard time buckling up with other suit-and-ties that are still waiting at the train station with the bears. The game of musical chairs is getting crowded, so it is still important to listen to the music.

Pre-Market Update: The bulls got back on a Monday win streak and continued to push fresh highs in yesterday’s session. The technical picture still points towards higher highs, but the small-caps and VIX keep teasing the scene.

Pre-Market Update: Stocks were tepid heading into last week, as mid-term elections and economic news played a major role in the direction of the market. The bulls were on the brink of revisiting all-time highs, while the bears were looking to get back on track.

Pre-Market Update The bulls kept their momentum by pushing new all-time highs on Thursday and are looking for another “breakout” on a good Nonfarm Payrolls report this morning.

Pre-Market Update Wall Street finished higher on Wednesday despite the bears’ best efforts to limit the gains. Another fresh all-time high was set by the bulls, but the choppy action was frustrating, as Tech failed at its second layer of resistance for the third session in a row.

Pre-Market Update The market ended mixed for the second-straight session on Tuesday, while the mid-term elections lasted late into the night. Although the Republicans were expected to win a majority in the Senate, the nervousness showed in another choppy session.