1:00pm (EST)
And your hands upon the wheel…we’re going to the roadhouse and we’re going to have a real..good time…
Folks, the market will get its first big test tomorrow when the unemployment news hits the wire. The Dow is currently up 4 points 10,577 and the S&P 500 is up a half-point to 1,137. The Nasdaq is off by 9 points and is at 2,292.
We have mentioned how tight of a range the market has been in but that should loosen up on Friday and starting next week. There is no clear signal as we way the market is headed so we have built our portfolio with calls and puts. Some of our call options are longer-term because we are lacking direction and the put trade is a guard against a downturn from here.
Next week 4Q earnings report will start to hit Wall Street and all eyes will be on Alcoa (AA, $16.48, down $0.48) which reports earnings on Monday. Next week is also option expiration week and there is a boatload of action in the January option pits.
Alcoa just set a 52-week high of $17.06 yesterday and got slapped with a downgrade this morning. Option expiration week offers the opportunity to make upwards of 300% on the right call or put options so we are keeping Alcoa and others on our Watch List.
As we roll out of some profitable trades and into news ones, we still have to be careful with market direction so some trades could get caught in the mix. Overall, we know the stories that will drive these stocks higher or lower and we can’t wait until earnings roll in.
We still think there are some safe pockets in the market and we look at another new trade today in our Members Area. We think the stock could jump 50% by summertime and possibly double by year-end. If you are not yet a subscriber, we think you owe it to yourself to check out the story.
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