The bulls were able to finish Thursday’s session in the green despite spending much of the day in the red. We covered yesterday’s letdown on the U.S. economic news but the bears were unable to take advantage of the headlines as the market finished higher across the board.
The Dow added 22 points, or 0.2%, to close at 12,471. The blue-chips traded to a low of 12,385 before recovering to trade up to 12,483. It was a higher peak than Wednesday’s top but short of Tuesday’s run up to 12,514. We would give 50 cents to see a higher close than this going into the weekend, preferably, we would like to see 12,600 trigger today.
The S&P 500 gained 3 points, or 0.2%, to end at 1,295.50. The index touched a low of 1,285 at the open before making its way up to 1,296.82. Yes, we are rooting for a close above 1,300 or even a kiss on the cheek would be nice.
The Nasdaq advanced 14 points, or 0.5%, to settle at 2,724.70. Tech has shown the most strength this week, surprisingly, and will be key to a continued rally, along with the Financial stocks. After holding the 2,700 level, the Nasdaq reached a peak of 2,726.43 and fell just short of our 2,725-2,750 targets for the week but we still have today.
From the “one that got away” department…we listed a high-beta stock on our Watch List the other day and although it wasn’t an “official” recommendation, we got a ton of emails following yesterday’s close from some of our subscribers who did. Here is what the trade in cue looked like in our morning update (1/12/2012, 9am) before the market opened:
Polypore International (PPO, $47.37, up $2.27)
February 50 calls (LULU120218C00050000, $1.45, up $0.35)
January 50 calls (PPO120121C0050000, $0.35, up $0.10)
Thoughts: Shares appear headed for double-nickels ($55) if $50 is cleared which means the options would be worth $5. Obviously, the February calls have the better chance of making it but at $51 the January calls would more than double. (END)
Here are our thoughts this morning inside our Members Area:
Polypore International (PPO, $51.10, up $3.73)
February 50 calls (LULU120218C00050000, $3.45, up $2.00)
January 50 calls (PPO120121C0050000, $2.00, up $1.65)
Thoughts: Wow. We missed a golden opportunity to make some fast money yesterday. The January 50 calls opened at 40 cents and traded to a high of $2.05 which was 400% round trip! The February 50 calls opened at $1.60 and hit a high of $3.50. (END)
Although we have closed one triple-digit winner this year and working on others as we type, we missed a golden opportunity with this one but we are still watching Polypore. Sometimes our portfolio is full so we profile backup trades or ones we are watching so that we always have an opportunity to make some money.
Futures are showing a slightly lower open. Dow futures are down 19 points to 12,394 while the S&P futures are lower by 5 points to 1,286. Nasdaq futures are off 2 points to 2,377. Subscribers, check the Members Area for the updates.