Sideways action turned to down action this past week driving some big profits on our latest position...
MOODY'S FELL OFF A CLIFF LAUNCHING OUR NEW PUTS TO A LIGHTNING FAST ONE-DAY THIRTY-ONE PERCENT PROFIT!
Of course our official position had a pretty tight trailing stop getting us out quickly--for those of you who hung on however open profits on those MCO Oct 23 puts are currently hovering around 200%--a strong testament to the momentum on this play.
We also got stopped out of our Caremark (CVS) calls Monday and never did get filled at our target price on BMC Software (BMC) so we are now all back to cash.
To find out where to put that cash for maximum profit let's take a good look at...
WHERE THIS MARKET IS HEADED
The SP-500 peaked at 1080 on Wednesday but the sellers were waiting to take profits immediately driving the index lower. Initial support at 1060 was quickly broken and Friday's intraday low of 1041 came very close to the next support level at 1035. With the index sitting right at support any move lower confirms a new downtrend--a confirmation we are liable to get on Monday.
The Nasdaq slammed into horizontal resistance at 2160 on Wednesday that dates back to March and July of 2008. The Nasdaq spent over a month in a range between 1950-2015 and that range could be where this index is headed. The SOX has declined to support at 320 which doesn't bode well for the Nasdaq. Dragging the SOX down is Intel, which is resting on support at 19.25. If Intel fails the SOX will fail pulling the Nasdaq deeper into the channel you see above.
The market slide extended to three days with a slightly negative close on Friday. Part of the problem was a drop in the sales of existing homes to 5.1 million from 5.24 million. That is an annualized rate and pretty normal as sales always decline as the summer ends. Home prices improved to only a -12.5% year over year decline and inventory fell to 8.5 months--the lowest level since April 2007. The 12-month average of existing inventory is 9.7 months. Sales declined for the month but were actually up +3.4% over the same period in 2008--an encouraging sign but it's all dependent on interest rates.
On Wednesday the Fed was upbeat suggesting the economy was moving out of the recession. They retained the comments about keeping rates under .25% for an extended period and also extended the time period over which they will buy Fannie and Freddie mortgage backed debt--all bullish for the markets.
However on Friday Fed Governor Kevin Warsh warned the Federal Reserve's need to raise interest will come before it becomes obvious and will need to be faster and stronger than "customary". Warsh said the Fed needs to be as aggressive on the way up as they were on the way down. He warned that the risk of a policy mistake remained high.
Warsh is an influential member of the Fed and his hawkish speech on Friday roiled the markets. The problem is the minute the Fed officially hints at raising rates the market trajectory will resemble that of an elevator with a freshly snapped cable.
Greenspan was widely criticized for removing the post 9/11 stimulus too slowly and allowing the economy to overheat producing the housing bubble--and subsequent burst we're all suffering from now. It took Greenspan two years to raise rates +4%. Warsh is suggesting the Fed not repeat that mistake and act aggressively once they start.
How long the Fed will be able to keep rates low though is a question--because the Treasury still apparently needs to sell a lot of debt to keep the Federal Government humming.
The government auctioned $112 billion in notes of various terms last week and half the debt was purchased by foreign central banks. U.S. primary dealers are buying less and less but so far the foreign banks have picked up the slack.
The bottom line is our fate in the hands of overseas debt buyers. If we make them mad with a sudden surge of dangerous moves they can and will stop. Famous money manager Julian Robertson said last week we were facing Armageddon because of our massively growing debt--and it's hard to disagree. There are some that predict interest rates could go back to double digits over the next several years if something is not done promptly. For those of you who remember the early '80s qualifying for a home loan at 14% was a bit of a challenge.
Next week is going to be a major week for economic reports and the markets should see some big movement. On Monday we get the last look at the Q2 GDP and it is expected to decline to -1.1% from the -1.01% in the last revision. This should not be a problem for the markets unless there is a major deviation from expectations.
On Wednesday the Chicago ISM is expected to rise slightly to 51.1 from 50.0 and will be a preview of the national ISM due out on Thursday. The national ISM for September is expected to rise to 54.0 from 52.9 in August. Again, this should not be a significant market event unless the numbers are a big surprise.
The biggest report for the week is the Non-Farm Payrolls on Friday. The consensus is for a loss of -188,000 jobs and less than the -216,000 jobs lost in August. Morgan Stanley believes the losses will be under 150,0000. It looks like most analysts have finally accepted the inevitable that the recovery may be jobless until early 2010.
This jobs report could easily ignite the market one way or the other. The Fed won't likely move off their "extended period" statement until we start adding jobs again. When we get a month of positive job growth the real worry over the Fed rate changes will begin so a lower jobless number won't always be seen as positive for the markets.
Initial Jobless Claims fell by 21,000 to 530,000 last week. That was the third consecutive weekly drop. This compares to a peak of 674,000 in March--so the rate of new job losses is definitely improving.
So we've got a market rolling over, a Fed Governor hawkish on rates, the jobs report coming up on Friday and a sixty percent gain since March that fund manager would really like to lock in before the end of the quarter on Wednesday--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two plays lined up this week and they are both bearish.
The first is on a company in the housing sector that has been whistling through the graveyard loudly proclaiming 'everything is all right'--up until they had to hold a fire sale this week to try and clear out their inventory. Investors smell a rat and have been dumping the stock but there's still a long way to go--a situation we'll be taking advantage of with the right puts first thing Monday morning.
Our next play is on an index that just rolled over and is now pointing due south. Fortunately this one won't have to move much to rack up some huge gains on the right puts.
We've got a market with a strong inclination toward profit taking and two excellent plays lined up to take advantage of it--so let's get going...
For more information on everything you receive with your Pearly Gates subscription click on www.cashflowheaven.com/pg
Monday, September 28, 2009
Friday, September 25, 2009
Relative Strength Forces a Stock Higher--Even in a Flat Market!
When trading straight puts or calls you HAVE to consider relative strength or weakness...
Relative Strength Forces a Stock Higher--Even in a Flat Market!
Two weeks ago on September 8th, we featured PCP as the "long of the day" because the stock was trading higher while the SP-500 continued to move sideways--a classic sign of relative strength. Subscribers could have purchased the October $105.00 calls for $.80---yesterday, the calls traded as high as $2.70 launching an $800 trade into an eye-popping $2700. That's a 238% return in less than 2 weeks!
Finding a stock that continues to surge higher even when the rest of the market is flat is the kind of relative strength you should look for. Ditto for relative weakness on puts.
Subscribe to the Daily Report to take advantage of moves on both sides of the market and then use the automatic orders from the Trading Package to create your own personal money machine. To learn more about a research report that gives you a new long and a new short each day and the Package to trade them with click this link now.
Market Commentary - Yesterday, the market rallied after the FOMC maintained their current policy. They will continue to support low interest rates and they did not outline an exit strategy. This is good news for businesses and consumers. Unfortunately, bulls ran out of gas and by the close, the market staged a key reversal. Technicians watch this price action very closely and that set us up for weakness today.
Before the open, initial jobless claims fell 21,000 to a seasonally adjusted 530,000. That was better than analysts had expected and the four-week moving average dropped to 553,000, the lowest since January 24th. This shows gradual improvement in the unemployment scene and it sparked a small rally. Shortly after the open, the market erased those gains and it moved to the downside with ease.
The selling pressure had already shown itself but then existing home sales were released at 10:00 am ET. Home sales dropped 2.7% last month but analysts were expecting a much better number given that sales had increased the prior 3 months. The market decline gained momentum after the release and it looks like we are setting up for a big round of profit-taking.
Apart from profit taking, there really isn't much of a reason for the decline so don't read too much into it. The market has rallied dramatically in the last two months and it needs to take a breather. Last week, the quadruple witching rally felt fabricated (expiration buy programs) and it's not surprising to see those gains taken back.
Next week, consumer confidence, the ADP employment index, Q2 GDP, Chicago PMI, personal income, initial jobless claims, construction spending, ISM manufacturing, auto sales, factory orders and the Unemployment Report are scheduled. These are major economic releases and they will drive the market.
We'll likely see nervousness throughout this week, but the market should find support at SPY 100. The “less bad” theme will remain intact and this dip will set up a buying opportunity. After next week, Q3 earnings season will be upon us. This recession is more than a year old and the comps should be easy to beat. That means we will actually see earnings growth and by comparison, revenues will start to improve. Interest rates are low, economic conditions are improving and earnings will exceed expectations. These factors will drive a year-end rally and there will be plenty of money to be made.
However the market won't rally in a straight line. The easy money has been made and we can expect dips like this along the way. The pullbacks we saw in August and September were sharp and brief. Each led to a higher low and a new relative high. As long as SPY 100 holds, this same pattern is likely to repeat itself.
Asset Managers are fearful that they will miss a year-end rally and they are eager to put money to work. This low volume decline is nothing more than profit-taking and we are likely to see the big money bid up stocks before support is tested.
In this market, you have to buy the dips and sell the rips.
It would be smart to take profits on long positions now and go to cash. Wait for support to establish itself next week and buy stocks with relative strength. This rally is in the 7th inning and there is still more upside to come and we've got some incredible picks to profit from it--click here for full access to our new buy list.
Trade well,
Pete
Important Note: Options Success provides two high-probability stocks set-ups every day the market is open but DOES NOT provide specific buy or sell recommendations relating to the options on those stocks--the specific option, strike price, month of expiration and other decisions are made by each trader individually based on the strategies they've selected---customer feedback shows the most successful subscribers use the strategy guidelines suggested in our Options Success Trading Package.
If you have not already purchased the Options Success trading package and signed up for our daily stock picks we highly recommend you do so now (your options account will thank you!) Click on this link to get started
Relative Strength Forces a Stock Higher--Even in a Flat Market!
Two weeks ago on September 8th, we featured PCP as the "long of the day" because the stock was trading higher while the SP-500 continued to move sideways--a classic sign of relative strength. Subscribers could have purchased the October $105.00 calls for $.80---yesterday, the calls traded as high as $2.70 launching an $800 trade into an eye-popping $2700. That's a 238% return in less than 2 weeks!
Finding a stock that continues to surge higher even when the rest of the market is flat is the kind of relative strength you should look for. Ditto for relative weakness on puts.
Subscribe to the Daily Report to take advantage of moves on both sides of the market and then use the automatic orders from the Trading Package to create your own personal money machine. To learn more about a research report that gives you a new long and a new short each day and the Package to trade them with click this link now.
Market Commentary - Yesterday, the market rallied after the FOMC maintained their current policy. They will continue to support low interest rates and they did not outline an exit strategy. This is good news for businesses and consumers. Unfortunately, bulls ran out of gas and by the close, the market staged a key reversal. Technicians watch this price action very closely and that set us up for weakness today.
Before the open, initial jobless claims fell 21,000 to a seasonally adjusted 530,000. That was better than analysts had expected and the four-week moving average dropped to 553,000, the lowest since January 24th. This shows gradual improvement in the unemployment scene and it sparked a small rally. Shortly after the open, the market erased those gains and it moved to the downside with ease.
The selling pressure had already shown itself but then existing home sales were released at 10:00 am ET. Home sales dropped 2.7% last month but analysts were expecting a much better number given that sales had increased the prior 3 months. The market decline gained momentum after the release and it looks like we are setting up for a big round of profit-taking.
Apart from profit taking, there really isn't much of a reason for the decline so don't read too much into it. The market has rallied dramatically in the last two months and it needs to take a breather. Last week, the quadruple witching rally felt fabricated (expiration buy programs) and it's not surprising to see those gains taken back.
Next week, consumer confidence, the ADP employment index, Q2 GDP, Chicago PMI, personal income, initial jobless claims, construction spending, ISM manufacturing, auto sales, factory orders and the Unemployment Report are scheduled. These are major economic releases and they will drive the market.
We'll likely see nervousness throughout this week, but the market should find support at SPY 100. The “less bad” theme will remain intact and this dip will set up a buying opportunity. After next week, Q3 earnings season will be upon us. This recession is more than a year old and the comps should be easy to beat. That means we will actually see earnings growth and by comparison, revenues will start to improve. Interest rates are low, economic conditions are improving and earnings will exceed expectations. These factors will drive a year-end rally and there will be plenty of money to be made.
However the market won't rally in a straight line. The easy money has been made and we can expect dips like this along the way. The pullbacks we saw in August and September were sharp and brief. Each led to a higher low and a new relative high. As long as SPY 100 holds, this same pattern is likely to repeat itself.
Asset Managers are fearful that they will miss a year-end rally and they are eager to put money to work. This low volume decline is nothing more than profit-taking and we are likely to see the big money bid up stocks before support is tested.
In this market, you have to buy the dips and sell the rips.
It would be smart to take profits on long positions now and go to cash. Wait for support to establish itself next week and buy stocks with relative strength. This rally is in the 7th inning and there is still more upside to come and we've got some incredible picks to profit from it--click here for full access to our new buy list.
Trade well,
Pete
Important Note: Options Success provides two high-probability stocks set-ups every day the market is open but DOES NOT provide specific buy or sell recommendations relating to the options on those stocks--the specific option, strike price, month of expiration and other decisions are made by each trader individually based on the strategies they've selected---customer feedback shows the most successful subscribers use the strategy guidelines suggested in our Options Success Trading Package.
If you have not already purchased the Options Success trading package and signed up for our daily stock picks we highly recommend you do so now (your options account will thank you!) Click on this link to get started
Monday, September 21, 2009
IN SPITE OF A BULLISH MARKET TOYOTA (TM) DIPPED WEDNESDAY DELIVERING A FOURTEEN PERCENT PROFIT ON OUR PUTS!
We had another good week in the markets with the indices continuing their seemingly never-ending climb higher...
IN SPITE OF A BULLISH MARKET TOYOTA (TM) DIPPED WEDNESDAY DELIVERING A FOURTEEN PERCENT PROFIT ON OUR PUTS!
PLUS CTRP JUMPED HIGHER LAUNCHING OUR NEW CALLS TO A QUICK TWO-DAY FORTY-TWO PERCENT PROFIT!
Those were some nice gains but we also got stopped out of Baxter (BAX) plus LMT and HOG expired on Friday.
The market continued to climb skyward but it's beginning to look ready for a pullback. To find out what we might be in store for and how to make money on it let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
As you can both indices hit their uptrend resistance lines Friday and even though this bull run probably has more fuel over the next few weeks it wouldn't be surprising to see a pullback in the next few days--in fact it would be healthy.
Helped by consumer staples, the S&P finished Friday up 2.81 at 1068.30 tacking on 25.57 for the week.
The Nasdaq Composite gained 6.11 points to close at 2132.86 on Friday up 51.96 for the week.
The Nasdaq has been on a tear jumping higher eight out of the past 10 weeks.
There was some positive news this past week and that helped. Building Permits rose 2.7 percent with a seasonally adjusted 579,000 permits marking the highest number since last November.
But the big news was the Philly Fed Manufacturing report's jump to 14.1 that launched the markets to new relative highs on Thursday morning. The 14.1 increase beat expectations of 8% and produced the first two-month consecutive gains since the end of 2007. Inventories continued slipping, pointing to a need to gear up to replenish inventory.
Also Thursday morning the initial unemployment claims report dropped to 454,000, but the Department of Labor revised the previous week's numbers higher, to 557,000. The insured unemployment rate also inched higher to 4.7 percent from the previous 4.6 percent. Continuing unemployed rose by 129,000.
So even though the employment report was mixed the markets rallied Thursday morning on more 'less bad' news--then they pulled back and then jumped again on Friday.
Unfortunately an awful lot of this rally is on the assumption that the US Treasury will be able to sell its ever-increasing amounts of debt.
Wednesday's TIC Long-Term Purchases for July was a major disappointment, at $15.3 billion versus the expected $65.3 billion. In the past, this was a little-watched indicator but it's becoming increasingly important. This indicator measures the international demand for long-term U.S. financial assets. The net foreign buying of long-term securities for the prior month had been $90.2 billion. The report indicates that foreigners sold a net $97.5 billion of long-term and short-term securities. This is a huge turning point as foreigners have turned from buyers to sellers of US debt.
China and Russia have been threatening a boycott of US debt as the dollar continues to suffer under massive dilution. And now this TIC report indicates they are serious. On Friday, Russia's Prime Minister Vladimir Putin again called for other currencies besides the U.S. dollar to be added as global reserves, concerned about the U.S. "uncontrolled issue of dollars".
Dollar futures broke-down below the 77 level back on September 11, then produced a number of potential reversal signals before slipping lower again earlier in the week. On Thursday afternoon, dollar futures began a climb that approached the 77 level again before pulling back into a consolidation zone just below that level.
If the US can't sell its debt interest rates will have to rise and when they do it will be time to get short in a big way. The problem of course is debt--and the government has determined that the solution to too much debt is more debt--but it's piling it on top of a system already collapsing.
FDIC Chairman Sheila Bair admitted Friday that the increase in bank failures had significantly drained the agency's funds. Although in the past Bair had thought it unlikely that the agency would ever have to tap into its line of credit with the Treasury Department, she said when the agency met at the end of the month, that option would be explored as a means to rebuild the depleted funds.
Chairman Bair went beyond replenishing FDIC funds--she also said that she didn't believe that mark-to-market accounting for bank loans should be further extended or that large financial entities should be led to expect further government assistance if they experience problems.
Friday evening's closure of Irwin Union Bank, F.S.B., Louisville, KY and Irwin Union Bank and Trust Company, Columbus, IN added two more financial institutions to the previous 92 banks closed so far in 2009 bringing the total this year to 94--compared to 25 in all of 2008.
A year ago, the FDIC's insurance fund had $45 billion available, but that's now been diminished to $10.4 billion minus the $850 million blow the FDIC estimates that Friday's closures will cost the Deposit Insurance Fund. That fund can't stand too many more Fridays at this rate.
The point of all this is even though the markets continue to rally--and we should bet that trend--there are serious underlying problems that haven't gone away. If the Fed can't keep interest rates low traders will have to kiss the rally--and any economic recovery-- goodbye. But for right now the markets looks strong although bumping up against resistance--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two stocks lined up this week--one bullish and the other bearish.
Our bullish pick is on a stock whose earnings and chart are both rising in tandem as traders flock to the few winners in an otherwise hard-hit economy. We'll use any dip on Monday to jump aboard this climber for what looks to be some very nice upside profits.
Our next play is on a financial stock that has really taken a beating lately. In spite of a rising market this stock just keeps tracing lower highs and lower lows--the classic definition of a downtrend. Now the stock looks ready for another spike lower and we'll be there to catch it with some well-placed puts.
We've got two great set-ups this week so let's get going...
For more information on everything you receive with your Pearly Gates subscription click on http://cashflowheaven.com/pg
IN SPITE OF A BULLISH MARKET TOYOTA (TM) DIPPED WEDNESDAY DELIVERING A FOURTEEN PERCENT PROFIT ON OUR PUTS!
PLUS CTRP JUMPED HIGHER LAUNCHING OUR NEW CALLS TO A QUICK TWO-DAY FORTY-TWO PERCENT PROFIT!
Those were some nice gains but we also got stopped out of Baxter (BAX) plus LMT and HOG expired on Friday.
The market continued to climb skyward but it's beginning to look ready for a pullback. To find out what we might be in store for and how to make money on it let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
As you can both indices hit their uptrend resistance lines Friday and even though this bull run probably has more fuel over the next few weeks it wouldn't be surprising to see a pullback in the next few days--in fact it would be healthy.
Helped by consumer staples, the S&P finished Friday up 2.81 at 1068.30 tacking on 25.57 for the week.
The Nasdaq Composite gained 6.11 points to close at 2132.86 on Friday up 51.96 for the week.
The Nasdaq has been on a tear jumping higher eight out of the past 10 weeks.
There was some positive news this past week and that helped. Building Permits rose 2.7 percent with a seasonally adjusted 579,000 permits marking the highest number since last November.
But the big news was the Philly Fed Manufacturing report's jump to 14.1 that launched the markets to new relative highs on Thursday morning. The 14.1 increase beat expectations of 8% and produced the first two-month consecutive gains since the end of 2007. Inventories continued slipping, pointing to a need to gear up to replenish inventory.
Also Thursday morning the initial unemployment claims report dropped to 454,000, but the Department of Labor revised the previous week's numbers higher, to 557,000. The insured unemployment rate also inched higher to 4.7 percent from the previous 4.6 percent. Continuing unemployed rose by 129,000.
So even though the employment report was mixed the markets rallied Thursday morning on more 'less bad' news--then they pulled back and then jumped again on Friday.
Unfortunately an awful lot of this rally is on the assumption that the US Treasury will be able to sell its ever-increasing amounts of debt.
Wednesday's TIC Long-Term Purchases for July was a major disappointment, at $15.3 billion versus the expected $65.3 billion. In the past, this was a little-watched indicator but it's becoming increasingly important. This indicator measures the international demand for long-term U.S. financial assets. The net foreign buying of long-term securities for the prior month had been $90.2 billion. The report indicates that foreigners sold a net $97.5 billion of long-term and short-term securities. This is a huge turning point as foreigners have turned from buyers to sellers of US debt.
China and Russia have been threatening a boycott of US debt as the dollar continues to suffer under massive dilution. And now this TIC report indicates they are serious. On Friday, Russia's Prime Minister Vladimir Putin again called for other currencies besides the U.S. dollar to be added as global reserves, concerned about the U.S. "uncontrolled issue of dollars".
Dollar futures broke-down below the 77 level back on September 11, then produced a number of potential reversal signals before slipping lower again earlier in the week. On Thursday afternoon, dollar futures began a climb that approached the 77 level again before pulling back into a consolidation zone just below that level.
If the US can't sell its debt interest rates will have to rise and when they do it will be time to get short in a big way. The problem of course is debt--and the government has determined that the solution to too much debt is more debt--but it's piling it on top of a system already collapsing.
FDIC Chairman Sheila Bair admitted Friday that the increase in bank failures had significantly drained the agency's funds. Although in the past Bair had thought it unlikely that the agency would ever have to tap into its line of credit with the Treasury Department, she said when the agency met at the end of the month, that option would be explored as a means to rebuild the depleted funds.
Chairman Bair went beyond replenishing FDIC funds--she also said that she didn't believe that mark-to-market accounting for bank loans should be further extended or that large financial entities should be led to expect further government assistance if they experience problems.
Friday evening's closure of Irwin Union Bank, F.S.B., Louisville, KY and Irwin Union Bank and Trust Company, Columbus, IN added two more financial institutions to the previous 92 banks closed so far in 2009 bringing the total this year to 94--compared to 25 in all of 2008.
A year ago, the FDIC's insurance fund had $45 billion available, but that's now been diminished to $10.4 billion minus the $850 million blow the FDIC estimates that Friday's closures will cost the Deposit Insurance Fund. That fund can't stand too many more Fridays at this rate.
The point of all this is even though the markets continue to rally--and we should bet that trend--there are serious underlying problems that haven't gone away. If the Fed can't keep interest rates low traders will have to kiss the rally--and any economic recovery-- goodbye. But for right now the markets looks strong although bumping up against resistance--the question is...
HOW DO WE MAKE MONEY ON IT?
We've got two stocks lined up this week--one bullish and the other bearish.
Our bullish pick is on a stock whose earnings and chart are both rising in tandem as traders flock to the few winners in an otherwise hard-hit economy. We'll use any dip on Monday to jump aboard this climber for what looks to be some very nice upside profits.
Our next play is on a financial stock that has really taken a beating lately. In spite of a rising market this stock just keeps tracing lower highs and lower lows--the classic definition of a downtrend. Now the stock looks ready for another spike lower and we'll be there to catch it with some well-placed puts.
We've got two great set-ups this week so let's get going...
For more information on everything you receive with your Pearly Gates subscription click on http://cashflowheaven.com/pg
Friday, September 18, 2009
1000% Profit in One Week--Relative Strength is Like Money in the Bank...
Combine a bull market with relative strength and the options profits can be huge...
1000% Profit in One Week--Relative Strength is Like Money in the Bank...
Last Thursday we featured Anadarko Petroleum (APC) as the "long of the day" for one reason--relative strength. Back then we wrote: "...natural gas jumped and that has this stock moving. It is strong relative to oil and it is breaking out to a new 52-week high. The dollar is also getting crushed and that is helping oil move higher."
Plus the chart looked great. Subscribers could have purchased the September $60.00 calls for just $.55 cents. Today those calls traded as high as $6.10. You could have had your own gusher by launching a $550 trade into a whopping $6,100 in just one week!
Subscribers are making a killing as the bullish stocks on our Watch List are absolutely rocketing higher---APC is just one example.
Subscribe to the Daily Report to take advantage of this amazing rally and get the Trading Package for maximum 'hands-free' profitability. To access an entire list of the kind of potential you see below Click Here Now.
Market Commentary - Last week we suspected that quadruple witching could play an important role this week. Once the upward momentum established itself, option expiration fueled the rally. The market convincingly made a new high for the year and prices closed right on their high of the day Wednesday. Option volume was very heavy and there is a speculative feel to the price action.
Many traders have been looking for seasonal weakness in September and they have been left behind. Likewise, Asset Managers who are under allocated have been scrambling to place money. They are getting more and more aggressive and that is why the two small dips in the last two months have been shallow and brief.
The market has all the ammunition it needs to move higher. Earnings beat expectations by a large margin last quarter and we are likely to see earnings growth in Q3 due to easy comparisons from a year ago. This alone could fuel a year-end rally if the market does not get ahead of itself. Interest rates have been drifting lower and the massive bond auctions have gone well. The Fed is also committed to keeping rates low. Inflation is not putting upward pressure on yields and this week the CPI and PPI were tame. Economic statistics continue to show gradual improvement and the numbers are “less bad”.
This morning, initial jobless claims were 545,000 and that was better than expected. The week-to-week numbers fluctuate and most analysts follow the four-week moving average. That average fell by 8700 this week and it now stands at 563,000. Housing starts rose 1.5% and building permits climbed 2.7%. The deep trough in the housing cycle may have hit bottom.
The economic releases next week include LEI, initial jobless claims, durable goods, existing home sales and consumer sentiment. All have shown gradual improvement in recent months. Durable goods orders should increase because of cash for clunkers, but traders will see through that temporary spike. The FOMC will also meet next week. Their comments have not changed much in the last few months and their policy should remain bullish as they are likely to keep rates low.
The option expiration rally this week is starting to feel a bit frothy. Prices are likely to move higher right into the close on Friday. However, if we rally another 30 S&P 500 points, we are likely to hit resistance and we could see a pullback early next week. This market has tremendous upside momentum and it would be wise to avoid trying to pick a top. If you have bullish positions, set targets and scale out on strength. Be patient and wait for a pullback to reenter. This strategy has worked very well since May.
Expect choppy trading with a bullish bias the rest of the week. The momentum is strong and the volume is returning. This will be an exciting fall season!
Trade well,
Pete
1000% Profit in One Week--Relative Strength is Like Money in the Bank...
Last Thursday we featured Anadarko Petroleum (APC) as the "long of the day" for one reason--relative strength. Back then we wrote: "...natural gas jumped and that has this stock moving. It is strong relative to oil and it is breaking out to a new 52-week high. The dollar is also getting crushed and that is helping oil move higher."
Plus the chart looked great. Subscribers could have purchased the September $60.00 calls for just $.55 cents. Today those calls traded as high as $6.10. You could have had your own gusher by launching a $550 trade into a whopping $6,100 in just one week!
Subscribers are making a killing as the bullish stocks on our Watch List are absolutely rocketing higher---APC is just one example.
Subscribe to the Daily Report to take advantage of this amazing rally and get the Trading Package for maximum 'hands-free' profitability. To access an entire list of the kind of potential you see below Click Here Now.
Market Commentary - Last week we suspected that quadruple witching could play an important role this week. Once the upward momentum established itself, option expiration fueled the rally. The market convincingly made a new high for the year and prices closed right on their high of the day Wednesday. Option volume was very heavy and there is a speculative feel to the price action.
Many traders have been looking for seasonal weakness in September and they have been left behind. Likewise, Asset Managers who are under allocated have been scrambling to place money. They are getting more and more aggressive and that is why the two small dips in the last two months have been shallow and brief.
The market has all the ammunition it needs to move higher. Earnings beat expectations by a large margin last quarter and we are likely to see earnings growth in Q3 due to easy comparisons from a year ago. This alone could fuel a year-end rally if the market does not get ahead of itself. Interest rates have been drifting lower and the massive bond auctions have gone well. The Fed is also committed to keeping rates low. Inflation is not putting upward pressure on yields and this week the CPI and PPI were tame. Economic statistics continue to show gradual improvement and the numbers are “less bad”.
This morning, initial jobless claims were 545,000 and that was better than expected. The week-to-week numbers fluctuate and most analysts follow the four-week moving average. That average fell by 8700 this week and it now stands at 563,000. Housing starts rose 1.5% and building permits climbed 2.7%. The deep trough in the housing cycle may have hit bottom.
The economic releases next week include LEI, initial jobless claims, durable goods, existing home sales and consumer sentiment. All have shown gradual improvement in recent months. Durable goods orders should increase because of cash for clunkers, but traders will see through that temporary spike. The FOMC will also meet next week. Their comments have not changed much in the last few months and their policy should remain bullish as they are likely to keep rates low.
The option expiration rally this week is starting to feel a bit frothy. Prices are likely to move higher right into the close on Friday. However, if we rally another 30 S&P 500 points, we are likely to hit resistance and we could see a pullback early next week. This market has tremendous upside momentum and it would be wise to avoid trying to pick a top. If you have bullish positions, set targets and scale out on strength. Be patient and wait for a pullback to reenter. This strategy has worked very well since May.
Expect choppy trading with a bullish bias the rest of the week. The momentum is strong and the volume is returning. This will be an exciting fall season!
Trade well,
Pete
Monday, September 7, 2009
SHANDA INTERACTIVE (SNDA) CLIMBED ALL THE WAY TO EARNINGS BAGGING US A SWEET FOUR DAY SEVENTY-PERCENT PROFIT!
Greetings Options Winners, Trade Spinners and Profit Getters,
This past Tuesday the markets fell out of bed but managed to climb most of the way back by the end of the week. All that volatility added up to some great profits...
SHANDA INTERACTIVE (SNDA) CLIMBED ALL THE WAY TO EARNINGS BAGGING US A SWEET FOUR DAY SEVENTY-PERCENT PROFIT!
We took half our position off the table the day before the announcement and the other half off the next morning for some excellent over-all profits. The stock reversed its initial spike higher Friday morning but with a 61% earnings increase SNDA is likely to keep climbing.
Meanwhile our two older put plays continue to trade sideways as the market swings both ways looking for direction. To try and determine the course over the next week let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
The SPX is still trending higher and dip buyers showed up exactly where you would have expected on the uptrend line at 992. That gives us a clear exit point for longs if that 992 level breaks. Resistance is at 1040--a failure there would trace an ominous 'double top' and of course a break higher is bullish. If the SPX can't break through resistance this week the incentive increases for funds to lock in profits. It is not impossible to have a bullish September but it's extremely rare.
The Nasdaq dipped to support on Wednesday before bouncing higher back into its uptrending channel. With chip stocks upgrading guidance almost daily you would expect the Nasdaq to start showing a trend higher but the month-long move has been sideways.
The big news last week was the Non-Farm Payrolls for August showing a loss of 216,000 jobs---slightly better than the -225,000 consensus estimate. However the two prior months were revised lower to show a loss of an additional 49,000 jobs which makes you wonder what the revised number for August will eventually be.
Even though the markets celebrated the number as being 'less bad' the report still has some worrisome undertones. All sectors lost jobs except for education and healthcare. Last month's losses jumped the unemployment rate from 9.4% in July to 9.7%--the highest unemployment rate since 1983.
Nearly 7 million people have lost their jobs since the start of 2008. A total of 15 million are officially unemployed. Temp agencies, usually the first to hire when recovery begins, cut 6,500 jobs.
After shrinking two months in a row, the number of "underemployed workers" rose 278,000, to 9.1 million. 'Underemployed' is what the government calls people forced into part-time work because they can't find a full-time job.
Then there are "marginally attached workers" - the unemployed who have given up looking for work but still want a job--that number now exceeds 2.3 million.
Put the officially unemployed, the "underemployed" and the "marginally attached" together and you get what the government calls the U6 measure of unemployment. That number jumped a whole half a percentage point in August, to 16.8% which many consider to be the real unemployment rate.
It's hard to imagine the economy staging the recovery the stock market is envisioning with that level of unemployment and a consumer saving every penny they can--which makes one wonder how long this current rally can last.
The economic calendar for this week is light with almost nothing of importance in the normal reports. The Fed Beige Book is the only event that may be of interest to the market. Everything else is either a weekly report where surprises are negligible or a lagging report for July. That makes the Treasury auctions for $128 billion in bills, notes and bonds a likely focal point. The auctions will start on Tuesday and go for three days.
For the entire week there will be $38 billion in three-year notes, $20 billion in ten-year notes, $12B in thirty-year bonds, $29B in 13-week bills and $29B in 26-week bills. Almost every auction week we are seeing a new record in new debt and it's surprising rates haven't increased. Talk of a double dip recession is growing and that is keeping auction interest high and yields low. Plus with the Fed continuing to take up any excess by buying the Treasuries bonds, rates will continue to be suppressed. How long rates can stay low however remains in question.
Just a few days ago, the U.S. Treasury Department revealed that China actually reduced its note and bond holdings by $25 billion in June. Although China did not sell shorter-term Treasury bills - and isn't expected to - it's still the largest amount of Treasuries China has ever sold in a single month. This news was ignored in the media but it's a huge development.
In 2006, China and Hong Kong accounted for more than 50 percent of the increase in the amount of Treasury debt sold to the public. Then in 2008 China's share fell to 22 percent as the U.S. government increased its public debt by a record $1.2 trillion.
Then in the first half of this year, China and Hong Kong acquired only 9 percent of the more than $800 billion worth of new Treasury bonds that were sold - and now in June, China became a net seller of U.S. Treasury notes and bonds.
This is a really big deal because Washington's most dependable source of loans to finance our out-of-control deficits is drying up, which means demand for longer-term Treasuries is softening--a fact you can see in the bump higher in the TBT last week.
Which means we can count on much higher interest rates in 2010 and beyond. The problem is rising interest rates make borrowing more expensive curtailing both business financing and retail consumption--in fact higher rates will crush any chance of a vigorous recovery. Rising rates will also reverse rapidly rising stock prices the instant the market becomes aware of them.
For now however traders are pretty content with what is perceived as bullish economic indicators and market uptrends are still intact--just not quite as powerfully as they have been--the question is...
HOW DO WE MAKE MONEY ON IT?
The key to making money in a market like this one is to trade relative strength and weakness--in other words go long on the strongest stocks and short the weakest. It's also wise to maintain tight stops in case of any sudden reversals.
Fortunately we've got two plays this week--one bullish and the other bearish--with VERY attractive charts and fundamentals pointing in their respective directions.
Our first play is bullish and it's on a company that sells products people HAVE to have--and they do it better than anyone else in their sector. Instead of besting super low estimates like many other companies--when this company reported they actually turned in a profit increase over last year--enough to get investors flocking to the stock. The chart looks great on this one and so do the facts for what look to be some outstanding upside profits!
Our next play is bearish and it's on a stock in an industry that is absolutely floundering. Fortunately for us the stock bumped higher last week providing a great entry point in what looks to be a fabulous put play!
We've got two great set-ups on a market ready to move so let's get going...
For more information on everything you receive with your Pearly Gates subscription click on http://rs6.net/tn.jsp?et=1102695591280&s=19347&e=001oO2n45LvpFQfVblv1SebD_FlDwHQY6q32VScTa2QN0VjNWUNMgMXOLGhMgh9g1FAC6l0oTZmoSMFTvaA96B0sHuGKBFwV-7_GepMOyDlAYf1xOQszxKUvBA0Qf0VvrEF
This past Tuesday the markets fell out of bed but managed to climb most of the way back by the end of the week. All that volatility added up to some great profits...
SHANDA INTERACTIVE (SNDA) CLIMBED ALL THE WAY TO EARNINGS BAGGING US A SWEET FOUR DAY SEVENTY-PERCENT PROFIT!
We took half our position off the table the day before the announcement and the other half off the next morning for some excellent over-all profits. The stock reversed its initial spike higher Friday morning but with a 61% earnings increase SNDA is likely to keep climbing.
Meanwhile our two older put plays continue to trade sideways as the market swings both ways looking for direction. To try and determine the course over the next week let's take a good look at...
WHICH WAY THIS MARKET IS HEADED
The SPX is still trending higher and dip buyers showed up exactly where you would have expected on the uptrend line at 992. That gives us a clear exit point for longs if that 992 level breaks. Resistance is at 1040--a failure there would trace an ominous 'double top' and of course a break higher is bullish. If the SPX can't break through resistance this week the incentive increases for funds to lock in profits. It is not impossible to have a bullish September but it's extremely rare.
The Nasdaq dipped to support on Wednesday before bouncing higher back into its uptrending channel. With chip stocks upgrading guidance almost daily you would expect the Nasdaq to start showing a trend higher but the month-long move has been sideways.
The big news last week was the Non-Farm Payrolls for August showing a loss of 216,000 jobs---slightly better than the -225,000 consensus estimate. However the two prior months were revised lower to show a loss of an additional 49,000 jobs which makes you wonder what the revised number for August will eventually be.
Even though the markets celebrated the number as being 'less bad' the report still has some worrisome undertones. All sectors lost jobs except for education and healthcare. Last month's losses jumped the unemployment rate from 9.4% in July to 9.7%--the highest unemployment rate since 1983.
Nearly 7 million people have lost their jobs since the start of 2008. A total of 15 million are officially unemployed. Temp agencies, usually the first to hire when recovery begins, cut 6,500 jobs.
After shrinking two months in a row, the number of "underemployed workers" rose 278,000, to 9.1 million. 'Underemployed' is what the government calls people forced into part-time work because they can't find a full-time job.
Then there are "marginally attached workers" - the unemployed who have given up looking for work but still want a job--that number now exceeds 2.3 million.
Put the officially unemployed, the "underemployed" and the "marginally attached" together and you get what the government calls the U6 measure of unemployment. That number jumped a whole half a percentage point in August, to 16.8% which many consider to be the real unemployment rate.
It's hard to imagine the economy staging the recovery the stock market is envisioning with that level of unemployment and a consumer saving every penny they can--which makes one wonder how long this current rally can last.
The economic calendar for this week is light with almost nothing of importance in the normal reports. The Fed Beige Book is the only event that may be of interest to the market. Everything else is either a weekly report where surprises are negligible or a lagging report for July. That makes the Treasury auctions for $128 billion in bills, notes and bonds a likely focal point. The auctions will start on Tuesday and go for three days.
For the entire week there will be $38 billion in three-year notes, $20 billion in ten-year notes, $12B in thirty-year bonds, $29B in 13-week bills and $29B in 26-week bills. Almost every auction week we are seeing a new record in new debt and it's surprising rates haven't increased. Talk of a double dip recession is growing and that is keeping auction interest high and yields low. Plus with the Fed continuing to take up any excess by buying the Treasuries bonds, rates will continue to be suppressed. How long rates can stay low however remains in question.
Just a few days ago, the U.S. Treasury Department revealed that China actually reduced its note and bond holdings by $25 billion in June. Although China did not sell shorter-term Treasury bills - and isn't expected to - it's still the largest amount of Treasuries China has ever sold in a single month. This news was ignored in the media but it's a huge development.
In 2006, China and Hong Kong accounted for more than 50 percent of the increase in the amount of Treasury debt sold to the public. Then in 2008 China's share fell to 22 percent as the U.S. government increased its public debt by a record $1.2 trillion.
Then in the first half of this year, China and Hong Kong acquired only 9 percent of the more than $800 billion worth of new Treasury bonds that were sold - and now in June, China became a net seller of U.S. Treasury notes and bonds.
This is a really big deal because Washington's most dependable source of loans to finance our out-of-control deficits is drying up, which means demand for longer-term Treasuries is softening--a fact you can see in the bump higher in the TBT last week.
Which means we can count on much higher interest rates in 2010 and beyond. The problem is rising interest rates make borrowing more expensive curtailing both business financing and retail consumption--in fact higher rates will crush any chance of a vigorous recovery. Rising rates will also reverse rapidly rising stock prices the instant the market becomes aware of them.
For now however traders are pretty content with what is perceived as bullish economic indicators and market uptrends are still intact--just not quite as powerfully as they have been--the question is...
HOW DO WE MAKE MONEY ON IT?
The key to making money in a market like this one is to trade relative strength and weakness--in other words go long on the strongest stocks and short the weakest. It's also wise to maintain tight stops in case of any sudden reversals.
Fortunately we've got two plays this week--one bullish and the other bearish--with VERY attractive charts and fundamentals pointing in their respective directions.
Our first play is bullish and it's on a company that sells products people HAVE to have--and they do it better than anyone else in their sector. Instead of besting super low estimates like many other companies--when this company reported they actually turned in a profit increase over last year--enough to get investors flocking to the stock. The chart looks great on this one and so do the facts for what look to be some outstanding upside profits!
Our next play is bearish and it's on a stock in an industry that is absolutely floundering. Fortunately for us the stock bumped higher last week providing a great entry point in what looks to be a fabulous put play!
We've got two great set-ups on a market ready to move so let's get going...
For more information on everything you receive with your Pearly Gates subscription click on http://rs6.net/tn.jsp?et=1102695591280&s=19347&e=001oO2n45LvpFQfVblv1SebD_FlDwHQY6q32VScTa2QN0VjNWUNMgMXOLGhMgh9g1FAC6l0oTZmoSMFTvaA96B0sHuGKBFwV-7_GepMOyDlAYf1xOQszxKUvBA0Qf0VvrEF
Friday, September 4, 2009
This Regional Bank's Stock Could Drop to Zero...
Everyone is clinking champagne glasses that 'the worst is behind us'--but all those folks could be in for a rude surprise as the next wave of bank failures hits...
This Regional Bank's Stock Could Drop to Zero...
Last Friday three more regional banks went bankrupt--and if you were holding puts on those banks you made a fortune. Last Friday we zeroed in on another bank that might not make it and even in this bull market the thing has been trading straight down. When we featured the trade subscribers could have purchased the September $35.00 puts for $1.75. Yesterday, those puts traded as high as $4.60 catapulting a $1,750 trade into $4,600 in just 4 days!
The thing is--by the looks of the chart this stock could go to zero turning even a modest investment into a fortune on the right puts.
After the kind of profits we've seen in just the past four days we'd normally give out the name of this stock so you could check it out for yourself--but the potential profits on this one are just too big and it would be a disservice to you to not encourage you to get ALL of our picks. If you got into this stock last Friday you could have made an easy $2,850--an amount that could have paid for your subscription for over three years if you got the Options Success Trading Package with your subscription.
Current banking analyst estimates are for 200 to 300 regional banks to fail within the next 12 months and when they do put buyers are going to rack up some outrageous gains--and you can start right here with the stock you see below. Heck the thing even popped higher today giving you a chance to get in for a song if you get in right away. Subscribe to the Daily Report, get the Package and get started shorting this bank teetering on a major meltdown. And the really inspiring news is--there are plenty more trades with this kind of potential where this one came from.
Market Commentary - The market feels like it’s running out of steam and we saw signs of that last week. Ben Bernanke was reappointed as the Fed Chairman and that should have provided a big boost to the market. Durable goods orders rose 2.4% (much better than expected) and Q2 GDP came in at -1% (better than expected). Dell posted better-than-expected earnings and Intel substantially raised guidance. With all of the positive news, the market was barely able to tread water.
Tuesday, ISM manufacturing increased more than expected to 52.9. That indicates economic expansion. Construction spending came in below estimates, but residential building was better-than-expected. Pending home sales rose 3.2% and that was also ahead of estimates. After an initial rally, the market quickly reversed. The market slipped into a nasty decline and by the close the S&P 500 futures were down 25 points. In the process, we fell below the breakout at SPY 101.
Unemployment is the focal point this week and nervousness ahead of tomorrow’s number sparked profit-taking on Tuesday. Initial jobless claims have been struggling the last four weeks and there is a chance that tomorrow’s number will disappoint. Today, jobless claims came in at 570,000 (560,000 were expected). The four-week average is a good indicator for the unemployment trend and 4000 jobs were shed from that calculation this week. Continuing claims rose 90,000 and it stands at 6.23 million. Yesterday, the ADP employment index showed that 298,000 jobs were lost in August. While that is a big improvement from the 360,000 jobs that were lost in July, analysts were looking for a much better number. I suspect that the unemployment rate will rise tomorrow and the number will be worse than expected. However, after Tuesday’s decline, much of the bad news might already be factored in.
This morning, retailers reported mixed results. Deep discounters fared the best as consumers continue to hunt for bargains. Overall, same-store sales dropped 2.9% in August.
ISM services came in at 48.4 today and that was better than expected. A number above 50 indicates economic expansion and we are close to seeing that. Almost 80% of our workforce is tied to services and this is a very important number. The market has had a decent reaction and stock prices are stable.
Overnight, the ECB said that it is seeing signs of an economic recovery. Their overall activity only dropped .1% in Q2. Next year, they project a .2% growth rate.
Light holiday trading has set in and we can expect that to continue into next week. Initial claims and consumer sentiment are the primary economic releases next week and they are not major market movers. The Treasury will hold 3-year, 10-year and 30-year bond auctions next week. Interest rates have been declining and the demand should be good. All in all, we are setting up for quiet trading.
September is the weakest month of the year and we saw some profit-taking this week. The news has generally been good and there is no other explanation for the decline. The path of least resistance is up and I suspect that we will see a pullback and a very sharp snap back rally. As long as SPY 96 holds maintain a bullish bias. We just posted two brand new trades designed to take advantage of this market choose your Package and Subscription term here.
Trade well,
Pete
This Regional Bank's Stock Could Drop to Zero...
Last Friday three more regional banks went bankrupt--and if you were holding puts on those banks you made a fortune. Last Friday we zeroed in on another bank that might not make it and even in this bull market the thing has been trading straight down. When we featured the trade subscribers could have purchased the September $35.00 puts for $1.75. Yesterday, those puts traded as high as $4.60 catapulting a $1,750 trade into $4,600 in just 4 days!
The thing is--by the looks of the chart this stock could go to zero turning even a modest investment into a fortune on the right puts.
After the kind of profits we've seen in just the past four days we'd normally give out the name of this stock so you could check it out for yourself--but the potential profits on this one are just too big and it would be a disservice to you to not encourage you to get ALL of our picks. If you got into this stock last Friday you could have made an easy $2,850--an amount that could have paid for your subscription for over three years if you got the Options Success Trading Package with your subscription.
Current banking analyst estimates are for 200 to 300 regional banks to fail within the next 12 months and when they do put buyers are going to rack up some outrageous gains--and you can start right here with the stock you see below. Heck the thing even popped higher today giving you a chance to get in for a song if you get in right away. Subscribe to the Daily Report, get the Package and get started shorting this bank teetering on a major meltdown. And the really inspiring news is--there are plenty more trades with this kind of potential where this one came from.
Market Commentary - The market feels like it’s running out of steam and we saw signs of that last week. Ben Bernanke was reappointed as the Fed Chairman and that should have provided a big boost to the market. Durable goods orders rose 2.4% (much better than expected) and Q2 GDP came in at -1% (better than expected). Dell posted better-than-expected earnings and Intel substantially raised guidance. With all of the positive news, the market was barely able to tread water.
Tuesday, ISM manufacturing increased more than expected to 52.9. That indicates economic expansion. Construction spending came in below estimates, but residential building was better-than-expected. Pending home sales rose 3.2% and that was also ahead of estimates. After an initial rally, the market quickly reversed. The market slipped into a nasty decline and by the close the S&P 500 futures were down 25 points. In the process, we fell below the breakout at SPY 101.
Unemployment is the focal point this week and nervousness ahead of tomorrow’s number sparked profit-taking on Tuesday. Initial jobless claims have been struggling the last four weeks and there is a chance that tomorrow’s number will disappoint. Today, jobless claims came in at 570,000 (560,000 were expected). The four-week average is a good indicator for the unemployment trend and 4000 jobs were shed from that calculation this week. Continuing claims rose 90,000 and it stands at 6.23 million. Yesterday, the ADP employment index showed that 298,000 jobs were lost in August. While that is a big improvement from the 360,000 jobs that were lost in July, analysts were looking for a much better number. I suspect that the unemployment rate will rise tomorrow and the number will be worse than expected. However, after Tuesday’s decline, much of the bad news might already be factored in.
This morning, retailers reported mixed results. Deep discounters fared the best as consumers continue to hunt for bargains. Overall, same-store sales dropped 2.9% in August.
ISM services came in at 48.4 today and that was better than expected. A number above 50 indicates economic expansion and we are close to seeing that. Almost 80% of our workforce is tied to services and this is a very important number. The market has had a decent reaction and stock prices are stable.
Overnight, the ECB said that it is seeing signs of an economic recovery. Their overall activity only dropped .1% in Q2. Next year, they project a .2% growth rate.
Light holiday trading has set in and we can expect that to continue into next week. Initial claims and consumer sentiment are the primary economic releases next week and they are not major market movers. The Treasury will hold 3-year, 10-year and 30-year bond auctions next week. Interest rates have been declining and the demand should be good. All in all, we are setting up for quiet trading.
September is the weakest month of the year and we saw some profit-taking this week. The news has generally been good and there is no other explanation for the decline. The path of least resistance is up and I suspect that we will see a pullback and a very sharp snap back rally. As long as SPY 96 holds maintain a bullish bias. We just posted two brand new trades designed to take advantage of this market choose your Package and Subscription term here.
Trade well,
Pete
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