The bears were going for a clean sweep this week but the bulls are pushing resistance, which was prior support, as they try to snap a week-long losing streak.
Much of the action can be attributed to JPMorgan Chase (JPM, $36.15, up $2.11) and Well Fargo’s (WFC, $33.96, up $1.11) earnings which we didn’t find impressive but Wall Street did. We said the over/under would be $4 billion on JP’s Whale trade and the loss was $4.4 billion. We haven’t listened to the conference call, yet, but we will this weekend. Apparently, there are a lot of smoke-and-mirrors with the earnings report, including language translators, so we aren’t sure what to think. JP makes a lot of money and we like the company but there just seems to be too many headline risks at the moment to make the stock a “safe” investment.
The Dow is surging 170 points to 12,744 and is pushing resistance just under 12,800 which was prior support. The S&P is up 18 points to 1,353 and is dancing around the 1,350 level. The Nasdaq is showing a 36 point pop and is at 2,902 and is teetering around the 2,900 level.
Next week should be super exciting as we have a number of events unfolding that could propel the market back to the top of its trading range or a continued selloff could resume.
Earnings season will shift into second gear and it will also be option expiration week which should bring added volatility. We have witnessed incredible price swings as the Dow has swing-traded a couple of hundred points, or 2%, intraday this week. Some of the heavy-hitters stepping up to the plate next week could produce the same volatility.
One day doesn’t make a trend and we expected a back test at some point for the market. We have been doing some early research on how next week might unfold and we talk a little about this in the Members Area today.
We also plan to release a trading video this weekend which will cover some possible earnings trades, where the market is headed, chart work, and other juicy tidbits. The video is for our subscribers who have purchased our option trading manual, How to Trade Options on Momentum Stocks.
The option course is designed to show you how we read the market and look for option trades so this will be a must see video considering where we are in the market. For those of you just learning options, these videos will improve your learning curve dramatically and they are included with the purchase of the trading manual.
When we do promotions, we often include the course at no charge (an $895 value) if you sign-up for a one-year membership to either our Daily or Weekly Wrap newsletter. For those of you who are current members, you can upgrade and we will add the extra year to your current membership.
You can read more about the course by clicking here.
Our Track Record for 2012 is 105-21 which is an astounding 83% win rate. Since we have been in business, our 5-year Track Record for all of our trades is a 75% win rate. You can also request our trade history by sending us an email and current subscribers can review our results in the Members Area.
The trading course will be shipped to you over the weekend (at no charge) and the promotion will end Sunday night at midnight. You will also receive an email with a link to watch all of our past videos as well as this Sunday’s invitation once you sign up. To get the course just signup for a 1-year membership to the Daily or Weekly Wrap and you do not need a code.
We don’t run this promotion often and we are getting ready to enter another possible explosive opportunity to make some serious profits. Many of you have been writing and asking about our next “deal” so here it is.
For those of you who want to learn how the markets works and how to find your own trades then here is your calling. Everyone should learn how to manage their money and these videos will help you understand everything we do.
We have a few last minute updates for our current trades so we have to roll.
We will be back Sunday night with our Weekly Wrap which is 20-0 for the year. We could be 22-0 by next Friday. Our next issue of the Daily will be published Monday morning. Until then, everyone have a great weekend!