It was another mixed session on Wall Street Thursday as the bears took 2-out-of-3. On Tuesday, it was the other way around and the other two days this week have favored the bulls with Monday’s 3% pop and Wednesday’s break past resistance. Although the Financial stocks were a drag, the market was able to bounce off session lows as the bulls head into today’s session with a comfortable lead for the week.
The Dow fell a little over 40 points, or 0.4%, to finish at 11,478. The index traded to a low of 11,377 which was just above support at 11,350 and represented prior resistance. We are still looking for a close above 11,600 this week.
The S&P slipped 4 points, or 0.3%, to settle at 1,203. The index traded to a low of 1,190 and was held under 1,200 for much of the morning before bouncing back in the afternoon. If anything, the bulls need to hold this level today as they make a bid for 1,225 before the weekend.
The Nasdaq added 15 points, or 0.6%, and went out at 2,620. Tech traded to a low of 2,588 but managed to stay above this level and moved higher into the close.
We saw what looked like strength yesterday so we took advantage of the dip to open 3 new trades for our subscribers. Although we weren’t betting on Google (GOOG, $558.99, up $10.49) to beat earnings, we did take a flyer on a couple of Tech names that might benefit if the company beat expectations. That they did which we will talk about in our afternoon update. We will also go over the “chicken trade” on the options we profiled yesterday. In after-hours trading last night, shares were at $595, up $36. This morning in pre-market action, shares are at $600.
From the “One That Got Away” department…TriQuint Semiconductor (TQNT, $7.39, up $1.46) surged 25% yesterday after the market learned its chips are inside Apple’s (AAPL, $408.43, up $6.24) new iPhone 4S. The option pits exploded once Wall Street heard the news. The TriQuint October 7 calls (TQNT111022C00007000, $0.65, up $0.60) zoomed 1,200% after opening at 3 cents! The November 7 calls (TQNT111119C00007000, $1.00, up $0.85) surged 566% after closing at 15 cents on Wednesday. We certainly don’t want to chase but shares could be headed to $10 on strength and short-covering.
We may have missed this one but we were able to close out 2 more winning trades yesterday as we continue to ride a double-digit win streak. Some our phenomenal returns have come on both calls and puts with returns of 184%, 73%, 164%, 74%, 92%, 75%, 38%, 40%, 56% and 50% just to name a few.
We are hoping to stay hot for the rest of 2011 and into 2012 as we expect the market to continue to be volatile. If we said it once, we have said it 10 times since August…this is one of the best times to be trading the market and we want you in the game. We are doing all we can to profit from this incredible trading environment.
As we head to press, Dow futures are up 129 points to 11,521 while the S&P futures are higher by 16 points to 1,214. Nasdaq futures are showing a 25 point pop and are at 2,350.