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Fannie and Freddie: The Other Side of the Coin

Yesterday I mentioned that I couldn’t find a compelling reason to go long on Fannie Mae (FNM, $4.40, down $1.61) and Freddie Mac (FRE, $3.20, down $0.92) although the payoff could be huge. The problem was the risk. Even though the long call options were cheap, the fact that bankruptcyRead more

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Timing is Everything

The “timing is everything” quote couldn’t have had more meaning today with a few of our trades. The bears had thoughts on taking the financial sector lower until the bulls stepped in and took over. The earlier blog this morning couldn’t have come at a better time although it’s aRead more

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Yahoo Under $20

Yahoo (YHOO, $19.38, down $0.05) has dipped below $20 again and it may be time to start nibbling on a small position. The stock has taken a back seat to the financial sector right now and it may be a good time to take advantage of the drop below $20.Read more

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Financial Stocks Weaker

The ride for the financial stocks has accelerated to the downside over the past few weeks and some big names are trading near 52-week lows again. We all know that there are some trading opportunities that come with these names and we have played them both ways. The option gainsRead more

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Harley-Davidson Stopped Out

Harley-Davidson (HOG, $40.17, down $2.27) took a stab at $43 but folded like a cheap lawn chair when the market went south. The stock got as high as $42.98 on Monday and opened higher than Friday’s close of $42.56. The push to $43 was too great and in the endRead more

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Home Depot Falls After Earnings Announcement

Home Depot (HD, $26.20, down $0.76) reported a 24% drop in profits and reiterated its downbeat outlook for the rest of the year. The weak housing market that shows no signs of recovery continues to plague Home Depot but once again, in the scheme of things, their earnings report wasRead more

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More on Oil

We might as well get accustomed to talking about oil on a regular basis, as if we haven’t already, right? There are so many things that oil effects right now that change has become inevitable to find cheaper, alternative fuels. That’s a good thing as far as trading oil goesRead more

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Lowe's Beats Street

In a day that saw the Dow drop 180 points, Lowe’s (LOW, $24.54, up $0.04) reported 2Q earnings that beat Wall Street’s estimates and its stock held steady. We all knew the housing market would still have an affect on Lowe’s but considering the circumstances, Lowe’s earnings report was actuallyRead more

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Harley-Davidson Revs Higher

Harley-Davidson (HOG, $42.56, up $1.21) ended the week on a high note, closing at its high for the day on Friday. It’s a pretty good sign going into the weekend that investor demand is still strong. If the market hadn’t closed, the stock was on its way to $43. ARead more

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Weekly Recap

The market ended another week mostly higher as oil continued its decline and the dollar once again had another strong showing. The finance stocks continue to be volatile but there were no major surprises as most of them held steady despite the debate that continues on what is their fairRead 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.