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Weekly Wrap for 2/16/09

1. Commentary 2. Oil and Gold 3. Options Education 4. Credit Spreads 5. Current Trades 6. Earnings 7. Closing Thoughts ************************************************** 1. Commentary The market was under tremendous pressure last week and as the saying goes, pressure bursts pipes. Wall Street took a back seat to Washington as the stimulusRead more

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Bank of America Update

Yesterday morning before the marlet opened, I had mentioned a couple of March call options for Bank of America (BAC, $5.87, down $0.20). The March 6 calls (BYOCF, $1.15, down $0.15) and the March 7 calls (BYOCG, $0.78, down $0.09) had lost 50% of their value on Tuesday. We wereRead more

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Nasdaq Turns Positive

It has been a tough morning for the market as the three major indexes are mixed. Wall Street is still nervous on just how effective the stimulus plan will be but Tech has suddenly turned positive. The Nasdaq is up 2 points to 1,532 while the Dow is down 111Read more

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Spider Gold Shares Rally

Spider Gold Shares (GLD, $93.21, up $3.00) are finally rallying after a couple of weeks of doing nothing. Gold started to rally yesterday when the bank stocks started to fall and is up $30 today to $945 an ounce, a seven-month high. Gold bulls are buying the metal amid doubtsRead more

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Dow Plunges on Uncertainty

The market hates uncertainty and Tuesday all Wall Street could do was watch with despair as stocks were sent plunging. The market sat on the fence on Monday and traded flat and that was pretty much the deal until Treasury Secretary Timothy Geithner spoke. The more he spoke however, theRead more

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Amgen Stopped Out

Yeap, I jinxed us. In fact, I jinxed the entire market. I had mentioned Amgen’s (AMGN, $57.41, down $1.33) eight-day winning streak yesterday and that quickly came to a halt just like the rest of the market’s momentum. The March 60 calls (YAACL, $1.70, down $0.50) were recommended on FebruaryRead more

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Dow Dips Below 8,000

Yes, I’m working overtime today. But today is important and I wanted to make a few observations for those of you that are new to options trading. It is 11:30am and the Dow has lost nearly 300 points and is currently at 7,990. My last update was just a halfRead more

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Trade Updates: Google Stop Hit/ Akamai Technologies Pops Higher

Google (GOOG, $372.97, down $5.80) is trending lower this morning and the party is over for our February 370 calls (GGDBN, $13.10, down $3.90). We raised the stop yesterday to $15 and the call options were profiled last Monday at $2.30. The trade made 5x your money if you gotRead more

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Intel and Cisco Systems Planning for Future

Cisco Systems (CSCO, $16.50, down $0.35) completed a $4 billion debt sale on Monday raising speculation that the company is poised to make an acquisition. Cisco recently reported earnings that managed to beat Wall Street’s expectations by 6 cents although those estimates were lowered. The company generated over $3 billionRead more

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Locked and Loaded

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.