12:05pm (EST)
The bulls rebounded at the open to push resistance that was prior support but the bears are still hungry and have taken control of the market as we head into the second half of trading.
The bulls needed to hold their gains at the open and we were watching to see if there was heavy volume on the pop higher but neither happened. A classic bear trap.
There are a number of things we could talk about today; jobless claims, earnings, Greece, Spain, or Germany but today is all about our trades so we will skip the chitchat and have a full report in the morning for you.
For now, let’s go ring the register on HALF of another winning trade that is pushing a 32% gain. We opened the position back in late September and after 6 weeks of waiting, we are closing half of the trade to take a little risk off the table as the company reports earnings in the morning. We still believe they will have a terrible quarter but earnings are always tricky to trade. Either way, we still believe we can make triple-digit profits with the trade but by taking half off the table, we will limit any losses by taking the 32% profit now if there is an earnings beat. These are November puts that expire next week and another reason why we need to take action.
As we head to press, the Dow is down 29 points to 12,904 while the S&P is lower by 4 points to 1,390. The Nasdaq is declining 10 points to 2,927.
Subscribers, check the Members Area for the updates. Also, we may send out a NEW TRADE if the market continues to slide or a PROFIT ALERT if we close other trades.