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Market Closes Below 8,000

The Dow fell 425 points yesterday to close below 8,000 for the first time since 2003 as economic news and worries over the fate of the big three automakers pushed the market lower in the final hour of trading. The selling really heated up in the final minutes and onlyRead more

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AutoZone Poised to Fall Below $100

Yesterday morning I mentioned the option activity in AutoZone (AZO, $100.48, down $6.68) from Monday’s trading session. The stock closed at $107 on Tuesday which allowed us to get into a couple of November and December put option plays at lower prices. Today’s 6% drop in the stock can beRead more

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Big 3 Testify

The big news today is the testimony of America’s car industry as CEO’s of General Motors (GM, $2.60, down $0.49), Ford (F, $1.45, down $0.23) and Chrysler are pleading their case for a $25 billion bailout before the House Financial Services Committee. The testimony is endearing and heated at theRead more

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Yahoo's CEO Steps Down

Jerry Yang might not be Yahoo’s CEO anymore but he did stay at a Holiday Inn Express last night. Shares of Yahoo (YHOO, $12.10, up $1.47) are up nearly 15% today on news that co-founder Yang will step down from his CEO duties once the company finds a replacement. InRead more

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AutoZone Gets "Buy" Rating

Let’s see how this one turns out. Citigroup (C, $8.89, down $0.63), whose stock has been in shambles recently, initiated coverage of AutoZone (AZO, $104.59, down $1.17) yesterday with a “Buy” rating on the stock. Citigroup blew its chance to close a deal for Wachovia (WB, $5.27, down $0.22) andRead more

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Baidu Gets Bitten

Baidu.com (BIDU, $134.09, down $44.80) took a pounding today as the China-based Internet search engine company saw its shares decline 25%. A report that Baidu sold paid listing links to unlicensed medical sites with unproven claims for their products weighed heavy on the stock. The news crippled an already weakRead more

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Abercrombie Continues Lower

Abercrombie & Fitch (ANF, $15.99, down $1.80) is trading lower again this morning following Friday’s disappointing earnings report. The company missed Wall Street’s expectations and offered a bleak outlook on holiday sales as it cut its fiscal-year numbers and sees results for the current quarter well below expectations. I mentionedRead more

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Option Expiration Week Could Bring Added Volatility

The market looks to have an uphill battle this week as it tries to break a two-week losing streak. After ending Friday’s session with a 338 point loss, the Dow is at 8,497 but bulls have to feel deflated after Thursday’s 550 point gain in the Dow did not carryRead more

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Retailers Hurtin' For Certain

If today’s earning reports are any indication for the retail sector’s Christmas shopping season then they are in t-r-o-u-b-l-e. Don’t shoot the messenger but Abercrombie & Fitch (ANF, $19.61, down $2.83) and JC Penney (JCP, $17.40, down $1.88) are getting walloped this morning after reporting disappointing earnings. Abercrombie profits fellRead more

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Before the Bell

Futures are trading lower this morning, which could lead to a potentially negative start this morning. The market rallied big-time on Thursday as the Dow managed to gain a little over 550 points, or nearly 7%, to finish at 8,835. The “snap-back” rally came on the heels of the marketRead more

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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.