It was a great day to be long as we were able to score our 11th straight winning option trade yesterday. The talking heads and fund managers keep telling you we are in a bear market but we told you back in August this would be one of the best times in a couple of years to trade options. We have also nailed the current trading range which has helped produce some massive profits for our subscribers and we are here to tell you – we are just getting started. Folks, we continue believe that the next 3 months, maybe longer, will provide some exciting opportunities so don’t miss the bus.
The Dow added 102 points, or 0.9%, to close at 11,518. The blue-chips traded to a high of 11,625 but were unable to close above our near-term target of 11,600. We said in our Weekly Wrap there was a chance at 11,800 on a close above this level but we also realize we are at the top of a trading range that has been ongoing since August. Support is strong at 11,350 and then 11,200 if the Dow fades from here.
The S&P 500 gained a dozen points, or 1%, to finish at 1,207. The index made a powerful move above our near-term target of 1,200 and traded to a high of 1,220. We said a run to 1,225 could be in the mix this week. Short-term support lies at 1,175-1,150 but the bulls could push 1,250 on short covering.
The Nasdaq advanced 22 points, or 0.8%, to settle at 2,605. We were hoping for a close above 2,600 as Tech traded to a high of 2,629 and we got it. We talked about this level on Sunday night and in our videos for the trading course and said this would be another bullish sign as they try to push 2,650 next while the bears take aim at 2,550.
We have also been talking a lot about the S&P 500 Volatility Index (VIX, 31.26, down 1.60) and the trading range it has been in just like the major indexes. The VIX has traded between 30 and 40 since August and has been stretched at times but we have said the index was headed below 30 which is…a bullish sign.
We have a lot to talk about in our Members Area and we have moved up some stops to protect our profits. There are a few trades on our Watch List we might put into action. Our Watch List has been just as hot as there have been a number of winning trades we have profiled over the last few months that weren’t official trades.
Oh, the other point we want to make is this. Our portfolio’s show money in and money out on all of our trades so here is the point we want to make. The 2011 portfolio shows an overall gain of 22% which is incredible in itself given the market conditions we have been through this year. However, if you started with $10,000 back in January you would be up nearly 250% if you have taken all of our trades. If you started with us 4 years ago you are should be halfway to a million if you started with 10K. This is how powerful options are. Seriously.
For those of you who have day jobs and can’t follow us all day long, remember, we have auto-trading partners that do the trading for you. When we send out a trade, they get the exact email you do and our trades are entered accordingly. The brokers we have are great at getting our limit orders filled and sometimes they even get better prices on the trades we enter. They also provide proof that our track records and trades are the real deal. The best part about auto-trading is that it doesn’t cost anything to sign up! To read more about our partners, click here.
Futures are pointing towards a slow start this morning. Dow futures are down 22 points, while the S&P futures are off 4 points. Nasdaq futures are up a point. Subscribers, check the Members Area for the updates and stay alert for a possible new trade today.