12:30pm (EST)
The market is mixed as we head into the second half of trading as both the bulls and bears try to gain leverage ahead of tomorrow’s Presidential election. Although there will be volatility, we expect the indexes to remain in their current trading range until Wednesday morning.
We covered what the election could mean for the market in our Weekly Wrap and in this morning’s update as the race is too tight to call. The polls have Obama leading Romney 48% to 47% but there is a plus or minus margin of 3% so there it is super tight.
We mentioned this morning the market could also go either way but our best guess was lower then possibly higher into yearend on a Romney Rally. We still believe a test below the 200-day Moving Averages is coming but current support could hold and a relief rally could start on Wednesday.
We are positioned perfectly as we head into the back half of the week because our portfolios are getting lighter. We have closed 2 more winning trades ahead of the possible breakout or breakdown on the indexes and the gains were fabulous.
Shares of Taser International (TASR, $8.13, up $0.21) closed below $8 on Friday and we were hoping this level would hold as support following the huge move after they announced earnings. Shares zoomed from $6.39 to a high of $8.45 on October 26 and closed at $8.07 but the momentum was lost following Hurricane Sandy with the market being closed last Monday and Tuesday. Although shares are above $8, they traded to a low of $7.64 this morning, triggering our Hard Stops.
The 2 trades we recommended made our Weekly Wrap subscribers 25% in a little over 2 weeks while our Daily subscribers made a whopping 500% on call options playing the move. We did a lot of homework for these trades and we had a strong feeling they would do well and we urged you to get in on them.
We have the same feeling over the next 2 months on playing the market, up or down, because the volatility should mean continued huge profits.
As we head into the second half of trading, here is how we look: The Dow is down 14 points to 13,079 while the S&P is off 2 points to 1,412. The Nasdaq is up 4 points to 2,986.
Subscribers, check the Members Area for our latest recommendation and be sure to use limit orders to get the best fills. We are expecting a quick triple-digit return on the trade but it is an earning play so the risk level is a little higher. No guts, no glory.
We will be back in the morning but check the after-hours market for company’s results for our NEW TRADE!!! We will need shares to trip double-digits for us to hit triple-digits.