We could hardly wait to get this morning’s news out. We have a lot of stuff we want to go over out here and in the Members Area.
The bulls tried their best to take the market higher on Wednesday but fell a little short by the closing bell. We talked a little about the “dollar trade” that was working on the market and despite the weakness the market spent most of the day in the red.
Gold and oil seemed liked the only thing that went up. Gold hit another all-time high of $1153/ ounce and settled at $1141 while oil managed to close at $79.52/ barrel.
By the end of the day, the market looked tired but the major averages still held key support levels. The Dow finished at 10,426, down 11 points, while the S&P 500 closed at 1,109, basically unchanged. The Nasdaq slipped 10 to close at 2,193.
Despite the lackluster day we had a few of our stocks that were on F-I-R-E! Here is what we said in our update yesterday afternoon (quotes are from Wednesday at 1pm):
“We were thisclose to pulling the trigger with a trade on Bunge Limited (BG, $62.16, up $3.27) this morning but we hesitated. We already have a trade on in Colgate-Palmolive (CL, $82.51, down $0.33) so we didn’t want two trades going in the same sector. Bunge is active in the agriculture and food business and have their fingers in a lot of pies worldwide. Agriculture has been HOT today…Monsanto (MON, $79.02, up $1.69) and Potash (POT, $114.11, up $3.51) are smoking green as both stocks are up over 2%.”
Folks, right before 3pm, Colgate zoomed and ended the day at $86! We just put out an option trade on this stock on Tuesday and yesterday’s nearly 4% jump has pushed our option return to nearly 200%! The call options we profiled on Tuesday morning were at $1.35 and closed yesterday at $3.90.
It would be nice to see the S&P 500 hold 1,100 as we head into Friday’s option expiration. If the index can hold or move higher we could start to see some real pressure on the bears. This is a key level and could give the bulls some momentum if we can push higher.
Current subscribers, check the Members Area for the updates…