1:00pm (EST)
The market is a little mixed as we head towards today’s close but the bulls are winning the week so here is what we are watching:
The Dow currently up 7 points to 11,565 and started the week at 11,491. Our yearend target is 11,600-11,700 for the index and it looks like we might nail it. We are looking for a bullish run up until next Friday which is usually a bearish day as it is the last trading day of the year. So, if we can get into this zone next week (or today), we think there will be a run up to 11,700 with a slight pullback to end the year.
The S&P 500 is down 2 points to 1,257 and started the week at 1,243. In mid-October, we said the index had a shot at 1,200 and this level was cleared during the first week of November. We then said to watch for 1,220 to be the next level the bulls take out and that happened by the first week of December. We then targeted 1,250 and we said if this level was broken then we have a shot at 1,275 by the end of the year. So far, so good.
The Nasdaq is currently down 4 points to 2,667 after starting the week at 2,642. We mentioned back in mid-October we were watching the 2,500 level for a confirmed breakout and this represented strong resistance. The bulls made it look easy as they blew past this level by the end of October. We then said we expect the index to trade up to 2,600-2,700 area which is where we have been since the first week of December. We also said if 2,660 were cleared then the bulls could push 3,000 in 2011.
Again, we are expecting a continued run by the bulls though next Thursday while the last Friday of the year has historically been bearish. However, we could see less selling pressure as investors hold onto their gains and delay paying capital gains taxes until 2012. Either way, the bulls are showing incredible momentum.
The market has been good to us and Santa has delivered a ton of incredible winning trades, early. We also have quite a few current trades which are up triple-digits and we are looking to carry some of those gains into 2011 while closing one out today. We couldn’t have asked for a better holiday for our subscribers as today’s closing trade represents a 112% return for our subscribers.
We are also probably going to add a few NEW positions to our current portfolio next week as we close out a few more winners and look ahead to 2011.
We are currently running a special deal where you can get our option trading manual, How to Trade Options on Momentum Stocks, for FREE if you subscribe to a 1-year membership to the Weekly.
We also said on Tuesday, if you purchase a 1-year membership to our DAILY newsletter, we will give you a FREE copy of the option trading manual which includes a copy of our Momentum Stocks Watch List. This manual breaks down dozens of sectors and over 600 stocks and makes it easy to start setting up your own Watch Lists. Your subscription will include all access to our ongoing training videos as well. We are not “advertising” this deal and it will only be good through the end of the 2010 so please hurry and take advantage of this offer.
We will be back on Sunday with the Weekly Wrap and we may have a NEW TRADE for the newsletter as we take a look at an exciting up and coming Biotech stock. Shares are currently at $15 but we expect a double to $30 for this gem in 2011. You can also take a look at all of our closed trades for 2010 to see the incredible run we have been on.
As we head towards the close, we would like to take this time to wish everyone a Happy Christmas and that we appreciate all of the cards and gifts that have been sent our way. See you next week and be safe!
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