The chart work for 2014 has been incredibly accurate and while I prepared for a market pullback in mid-September, and nearly called exact bottoms, I still believe this is one of the riskiest markets I have traded in years.
I wanted to provide a quick update on one of the current trades ahead of the weekend.
The spending spree at Amazon.com (AMZN) continues at all costs, literally, as the company reported a wider-than-expected loss for the quarter. It was nearly a given that they would come in with heavier losses, but investors are starting to tire of its massive investments and disregard to become a consistently profitable company.
I wanted to provide a quick update on our Amazon.com (AMZN, $315.47, up $0.14) trade from this morning ahead of the earnings announcement on Thursday, Oct. 23, after the close.
Buy to open the AMZN November 360 calls (AMZN141122C00360000, $2.10, up $0.80).Buy to open the AMZN November 260 puts (AMZN141122P00260000, $1.95, down $0.60).
Buy Flextronics International (FLEX, $9.12, up $0.17).
There will be plenty of action to talk about during another busy week, and I have done my best to show you some of the first clues I will be watching. The bulls will be trying to continue their rebound, and a positive Monday close would be a good start to the week.
Buy Aruba Networks (ARUN, $19.24, down $0.20).
Sell to open the ARUN November 20 calls (ARUN141122C00020000, $1.20, down $0.15).Buy Bank of America (BAC, $16.23, up $0.15).
If there is continued weakness today, there is a good chance the lower price targets I have given will come into play. If so, there could be an opportunity to add additional put option trades, but I am expecting a fight from the bulls at some point this week.
Stop triggered on Vanguard Natural Resources (VNR).
This week will be a good tell for the VIX. If traders are going to step up to the plate for a year-end rally, this week could be “the bottom” if the VIX can get back below 13.50 and hold 15. If not, there could be additional selling pressure for another week or so.
Stop Limit triggered on Hercules Offshore (HERO).
Take profits and sell to close Discovery Laboratories (DSCO) – Stock Trade
The “death-cross” I have said to watch for weeks also played out on the Russell 2000, with the 50-day moving average (MA) falling below the 200-day MA.
I’m still cautious on the near-term outlook, as I do see a flat to lower market developing ahead of third-quarter earnings season, which is three weeks away. Trading ranges can be tricky, and I want to make sure I’m prepared for one until the next round of fireworks. Otherwise, continue to bet on the bulls as long as support holds.
Buy Vanguard Natural Resources (VNR, $29.43, up $0.37) at current levels.
Stop Limit triggered on Avanir Pharmaceuticals (AVNR).
I wanted to give a brief update on Monday’s new addition to the Weekly Wrap portfolio.
Buy AVNR stock at current levels with expectations on exiting in the mid-teens.
Full disclosure — I own shares of PZZI, so I made a road trip this weekend to Pie Five, one of Pizza Inn’s trademarked brands, to learn more about their story and, more importantly, try their pizza.
Wall Street is worried about September, but I’m more interested in October. I would love to get confirmation that a 5%-10% correction is coming, as I will use put options to make money for our portfolio. While some call options may pullback, I have used longer-term options to protect the positions from volatility.
The bulls looked strong throughout the week but the bears lingered around on the closes as the market faced two huge hurdles last week.
Actions: AAPL shares traded to a low of $98.58 on Wednesday and the Stop Limit of $99 triggered during the 4% pullback.
The Stop Limit of $7.90 triggered on the second PZZI position from early July after shares tested a low of $7.85 yesterday. Continue to hold the other 2 PZZI positions.
The market finished August with stellar gains and at all-time highs on Friday, as the last trading day of the summer came to a close. The summer doldrums were anything but, as Wall Street vacationed and missed an incredible rally like I predicted they would.
Close CUBE at current levels as it is time to move on.
The few analysts and talking heads that are left between now and the start of September scrambled for clues on why the market rallied. They had excuses but no answers as the suit-and-ties are not “students” of the market and don’t do homework. If they were, they would have seen the bulls clues dropped all week long by the higher highs bulls higher highs were on deck.
The bulls avoided their first 3-week losing streak in over a year after the market rallied throughout the week. Friday was a volatile session and is usually the case with option expiration day but geopolitical concerns also added to the mayhem.
Orders for El Pollo Loco (LOCO) filled, buy Pizza Inn Holdings (PZZI), and buy Huttig Building Products (HBP).
The bears gave Wall Street a scare last week as more slick-talking pros jumped ship that cumulated with Thursday’s test to the major moving averages (MAs).
The bulls went into July looking strong but left the month looking weak. Of course, everything in between was a range bound market that produced stair-stepping highs before the elevator drop on Thursday and follow through on Friday. The bulls had a decent lead entering the month but the bears managed to breakthrough several layers of support that has caused some serious technical damage.
Buy AAPL at current levels and I will wait until shares trip $100 before possibly selling a call option.
The market continued its run at record highs last week but Friday’s pullback gave the bears a split with the bulls for the weekly win. While the broader market held up well, the small-caps struggled with resistance and faded throughout the week.
The market rebounded on Friday following Thursday’s steep pullback to end the week on a positive note. The gains were enough to give the bulls the weekly win but the small-caps struggled as volatility has been elevated given the geopolitical events from around the world.
Close half the KOG December 16 calls at current levels.
Wall Street quickly turned jittery following the July Jailbreak and run to all-time highs to start the month. The musical chair analysts were spooked to start the week after raising their price targets for higher highs in June. Despite the prior confidence, the suit-and-ties were rushing for a seat ahead of the closing bells throughout the week.
I have another Profit Alert on a stock that has longer-term potential to DOUBLE.
The clues were there all week the market momentum from June would continue into July and I mentioned the suit-and-ties could be scrambling to play catch-up once they got back to the office.
Trade Alert: I have another Profit Alert for the Weekly Wrap on a stock that got a nice pop on Friday but has pulled back today. The trade made 10%.
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MomentumOptionsTrading.com Weekly Wrap New Trades (HBP, CUBE)/ Trade Updates/ Profit Alert (KOG) for 6/23/2014 3:45pm (EST) The Weekly Wrap continues
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MomentumOptionsTrading.com Weekly Wrap 2 New Trades (HERO, LLNW) for 5/30/2014 2:12pm (EST) I have 2 New Trades (covered calls) for
MomentumOptionsTrading.com Weekly Wrap for 5/26/2014 11:00pm (EST) 1. Market Summary 2. Weekly Wrap Portfolio Update 3. Week Ahead (To
MomentumOptionsTrading.com Weekly Wrap for 5/18/2014 11:30pm (EST) 1. Market Summary 2. Limelight Networks (LLNW) – Can the Court See
MomentumOptionsTrading.com Weekly Wrap for 5/11/2014 11:30pm (EST) 1. Market Summary 2. Huttig Building Products (HBP) Undiscovered but a Work
MomentumOptionsTrading.com Weekly Wrap for 5/4/2014 11:30pm (EST) 1. Market Summary 2. HomeAway (AWAY) Getting Attractive 3. Earnings 4. Weekly
MomentumOptionsTrading.com Weekly Wrap Trade Update (DSCO)/ Profit Alert (RFMD) for 4/30/2014 12:45pm (EST) We have an update for one
MomentumOptionsTrading.com Weekly Wrap for 4/27/2014 11:30pm (EST) 1. Market Summary 2. GW Pharmaceuticals (GWPH) – Smoking or Burning to
MomentumOptionsTrading.com Weekly Wrap New Trades (KO, KOG, NLY) for 4/24/2014 1:15pm (EST) We have a 3 New Trades for
2:40pm (EST) We have a 3 New Trades for our Weekly Wrap on three stocks we believe will easily return
2:40pm (EST) We have a 3 New Trades for our Weekly Wrap on three stocks we believe will easily return
MomentumOptionsTrading.com Weekly Wrap for 4/13/2014 11:30pm (EST) 1. Market Summary 2. Hercules Offshore (HERO) – The Power of Hercules
Momentum Options Trading Weekly Wrap for 4/6/2014 “We said the bulls needed to survive last week and while the bears did
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There are other bearish developments that will at some point derail the bulls and they could come this week depending on what the zombies do but let’s take a look at some other indicators we are watching.
The month of March has been bullish over the past 30 years with the S&P 500 trading higher in 20 of them with an average gain of 1.4%. There is usually strength mid-month followed by weakness near month end.
1:40pm (EST) We have another Profit Alert for our Weekly Wrap for one our current positions as our Stop Limit
1:40pm (EST) We have another Profit Alert for our Weekly Wrap for one our current positions as our Stop Limit
2:15pm (EST) We have a Trade Alert for our Weekly Wrap for one our current positions as our Stop Limit
MomentumOptionsTrading.com Weekly Wrap for 3/9/2014 11:30pm (EST) 1. Market Summary 2. EMC Corporation (EMC) is Intriguing at Current Levels
11:00pm (EST) Working overtime as usual… As a reminder, one of our current trades for our Weekly Wrap was stopped
1:10pm (EST) We have 2 New Trades we are getting into for our Weekly Wrap newsletter. One stock is at
11:30pm (EST) 1. Market Summary 2. 2014 IPO Market Will be Exciting 3. Earnings 4. Weekly Wrap Portfolio
12:05pm (EST) We have a New Trade we are getting into for our Weekly Wrap newsletter. We have followed the
12:05pm (EST) We have a New Trade we are getting into for our Weekly Wrap newsletter. We have followed the
12:35pm (EST) Special Notice: If you haven’t logged into our Members Area to look at the charts from the weekend,
MomentumOptionsTrading.com Weekly Wrap for 2/23/2014 11:30pm (EST) 1. Market Summary 2. Weekly Wrap 2013 Year in Review 3. Earnings
1:30pm (EST) Shares of Groupon (GRPN, $8.23, down $2.05) are down 20% today following the company’s earnings announcement after Thursday’s
12:35pm (EST) We have action to take on 2 trades in our Weekly Wrap newsletter that have returned us a
12:35pm (EST) We have action to take on 2 trades in our Weekly Wrap newsletter that have returned us a
1:20pm (EST) The market has traded in a tight range to start the shortened week following Monday’s day off as
MomentumOptionsTrading.com Weekly Wrap for 2/16/2014 11:30pm (EST) 1. Market Summary 2. Cytokinetics (CYTK) Trying to Right the Ship 3.
2:15pm (EST) The battle at Dow 16,000; S&P 1,825; and Nasdaq 4,200 continues with the bulls reclaiming and holding these
12:30pm (EST) We love our job. Although the market can be frustrating at times, the homework you do can make
3:35pm (EST) We have another New Trade for our Weekly Wrap on a stock that has been heavily discounted in
3:35pm (EST) We have another New Trade for our Weekly Wrap on a stock that has been heavily discounted in
1:30pm (EST) Futures were showing a slightly mixed open for Wall Street today when we were doing our chart work
MomentumOptionsTrading.com Weekly Wrap for 2/9/2014 11:30pm (EST) 1. Market Summary 2. Earnings 3. Weekly Wrap Portfolio Update 4. Week
1:05pm (EST) We had a good feeling Twitter (TWTR, $52.48, down $13.49) would beat Wall Street’s estimates but we knew
12:35pm (EST) Twitter (TWTR, $65.91, down $0.41) will report its first ever earnings numbers as a publicly traded company after
1:45pm (EST) The bulls are testing resistance that served as prior support and the big question will be if they
3:15pm (EST) We have action to take on a trade in our Weekly Wrap newsletter that returned us 41%. We
3:15pm (EST) We have action to take on a trade in our Weekly Wrap newsletter that returned us 41%. We
1:15pm (EST) The bulls tried to hold support at the open but a nasty ISM number sealed the deal for
MomentumOptionsTrading.com Weekly Wrap for 2/2/2014 11:30pm (EST) 1. Market Summary 2. Fresh Healthy Vending (VEND) Looking to Change
1:15pm (EST) The bears have been dropping hints for 2 weeks they are ready to come out of a long
12:40pm (EST) The futures market got a huge pop after the close on Tuesday after Turkey hiked its overnight interest
2:20pm (EST) We touched base briefly on Apple’s (AAPL, $507.23, down $43.27) earnings this morning and we said going into
MomentumOptionsTrading.com Weekly Wrap Profit Alert (BSX) for 1/27/2014 2:25pm (EST) We have action to take on a trade in
1:40pm (EST) It is always hard to time a market top but if the bulls can’t get off the mat,
MomentumOptionsTrading.com Weekly Wrap for 1/26/2014 11:30pm (EST) 1. Market Summary 2. GasLog (GLOG) Could be a Nice Natural Gas
12:30pm (EST) The bulls faced trouble at the open and the talking heads have been all jacked up on a