12:50pm (EST)
There has been a slight battle between the bulls and bears today as both sides try to square up their positions for the week. There has been a ton of economic data so let’s get that out of the way, first.
The Consumer Price Index (CPI) was up 0.5% for March, less food and energy, CPI gained 0.1%. The consumer sentiment index level for April was 69.6 while the Empire State manufacturing survey for April came in at 21.7. Industrial production increased 0.8% for March.
The market got a pop after the University of Michigan Consumer Confidence reading came in at 69.6 but choppy trading returned soon afterwards. However, there could be a charge today into the close.
The Dow went into today’s session down 95 points for the week and the bulls are chipping away at the deficit. The blue-chips are up 70 points to 12,350 but it’s possible we see a triple-digit rally going into the close.
The S&P needed 14 points to get back to good and is up 7 points t0 1,321. The index broke below support this week at 1,325 and the test down to 1,300 has got our attention. However, we remain in this range between these two targets.
The Nasdaq needed a 20 spot to breakeven for the week and the drop below 2,750 on Tuesday did some technical damage. The index is currently up 5 points to 2,765 after touching a low of 2,743 so expect some see-saw action into the closing bell.
The domino effect over the past two weeks has now put the trend in the bears favor and we talked about the fundamental breakdowns we are starting to see. Earnings season hits second gear next week and we will be spending ALL weekend trying to find some of the best option trades that can return us triple-digit profits.
We will be updating all of our track records at the close of today’s trading. For our Daily 2011 track record, it looks like we will be at a 65%-70% win rate for our recommendations.
The Weekly Wrap 2011 Portfolio was started in late 2010 and is mainly used for finding undervalued stocks or ones with momentum for covered call candidates. We have profiled 7 stocks and 6 are showing profits. The one recommendation that is lower by 7% should rebound which is the beauty of writing covered calls. Since you own the stock, you get to collect the premiums from selling monthly (or WEEKLY) calls against your position while waiting for a bounce.
Folks, if you want to see a safe way we are trying to make 10%-20% or more a year for EACH trade by using call options, or selling put options, then we urge us to join our Weekly Wrap. We cover two in-depth stories a week on up-and-coming stocks or ones that we feel could breakout or are undervalued.
On average, the trades are up 10%-12% for the Weekly portfolio, but it has only been 4 months. If you times that by 3 then you are on track for annual gains of 25%+. If you are serious about learning more about our Weekly Wrap or how these stock and option strategies will help you, then please email us this weekend.
Next week will super exciting as we plan to get aggressive with the expiration of April options today. We took two on the chin but we are started to see a trend which means we may be playing WEEKLY options again as soon as next week.
If you would like the freshest copy of our 2011 Track Record, don’t forget to email us about that subject either. We have one last update inside our Members Area for today and we will be back Sunday night with the Weekly Wrap with two hot stocks that have made big moves this year.
Have a great weekend everyone!
]]>