Sometimes it is hard to go against the crowd even though what they are seeing can be believable. If you join the crowd, then you can say you were right or wrong with a lot of other people when something does or doesn’t work out but it won’t get you noticed or make you money. If you are wrong, you can look like an idiot, and the crowd will let you know. However, if you go against the crowd and you are right, then you look like a genius, but more importantly, you can make a lot of money.
When it comes to the stock market, it is important sometimes to not always follow the crowd, or in this case, the talking heads and the Wall Street analysts. Most of them don’t do homework, don’t read charts, and will flip-flop their statements on if the market or a stock is headed higher or lower. Nearly everyone was calling for a pullback this week but we just didn’t see it. Most of the clues we have been going over in our Weekly Wrap have been spot on and our homework continues to pay off.
The price action today has been beautiful which has helped the bulls regain their footing as the push our upper-end targets we outlined on Sunday night/ Monday morning.
Here were the week’s starting numbers followed by our targets and the current scorecard: Dow 11,644, S&P 1,224, Nasdaq 2,661. We said to watch for Dow 11,800; S&P 1,250 and Nasdaq 2,650-2,700.
Currently, the Dow is higher by 215 points to 11,757 while the S&P 500 is up 20 points to 1,235. The Nasdaq is showing a pop of 40 points and is at 2,638. Tech still has a little work to do but the market looks as though it will stay strong into the closing bell. We can’t call it much better than that, folks.
We also wanted to remind our Weekly Wrap subscribers that we will probably get “called away” from 3 more of our current trades today, possibly 4. This brings our 2011 Covered Call track record to a perfect 12-0 and today’s winners include Ford Motor (F, $12.15, up $0.45), Rambus (RMBS, $16.92, up $0.73) and Symantec (SYMC, $18.31, up $0.37). The returns are 7%, 16% and 4%, respectively.
The Weekly Wrap trades are what we consider “couch potato” investing, meaning, there isn’t a lot of watching that needs to be done. We look for strong companies that trade in a defined range or ones showing a lot of momentum. In addition to our 2 recent W’s, our subscribers have also cashed out gains for VVUS +18%, DNDN +9%, PCX +13%, SGEN +26%, TIVO +34%, REDF +11%, PCX +7%, GE +5% and CLNE +13%.
We will be back Sunday night, with the Weekly Wrap, and as we move closer towards the end of the month and into November, we continue to see explosive opportunities for option trades. We will also be doing a video, either this weekend or next, to show you more on how to read the market and charts. We will also show you some trades to consider as LEAPs for next year.
Remember, if you sign-up for a 1-year membership to either our Daily publication or our Weekly, you will receive a copy of our trading manual, How to Trade Options on Momentum Stocks, along with access to our ongoing videos. This is an $895 value that will cost you nothing just for making the dedication to become a better options trader. Shipping is also on the house. The yearly price saves you over 30% off our monthly membership. To read more about our option trading course, click here.
We are currently working on a 17-trade win streak for our Daily and we are 12-0 for our Weekly Wrap trades. If you are not a subscriber, you can email our support team to request our current closed trades Track Records.
Again, we will be back Sunday night with our next update so take us up on our 1-year deal. Until then, have an awesome weekend, everyone!