MomentumOptionsTrading.com Midday Update for 7/2/2013
Another Push Higher Meets Resistance
The bulls are trying to push the blue-chips to their third-straight Tuesday win and are once again running into key resistance levels. Economic news continues to come in ahead of expectations and the global markets are also showing some green. Of course, all the chatter between now and Wednesday’s half day close is all noise as Wall Street prepares for Friday’s Nonfarm Payroll numbers.
We will talk about the numbers and what to expect more in-depth on Wednesday morning but the market seems like it is back in the bad news is good news mood. The taper talk will likely heat up at 8:31am on Friday once the news is released and we expect higher volatility and the VIX to be on the move.
As the indexes continue to churn in their expanded trading ranges, the Nonfarm Payrolls report and the start of 2Q earnings starting next week should play a major role on how July shapes up.
We are still winding down a few May and June option trades and we have gotten some nice pin action on a couple of our call options. We are still looking to close out a few more positions for profits as we continue our incredible hot streak from late April. We will be in a great position to play the market’s next major move so stay ready and be patient.
As we head to press, the Dow is up 32 points to 15,006 while the S&P 500 is advancing 5 points to 1,620. The Nasdaq is higher by 8 poinrs to 3,442.
Subscribers, check the Members Area for the updates and be sure to read our comments on Scientific Games (SGMS, $12.14, up $0.43) as it set a fresh 52-week peak earlier in the session. The call options we have open have zoomed 500% today and why we remind readers a trade isn’t over until it closes or expires.