1:10pm (EST)
The market has traded in a tight range following yesterday’s breakout but the action is on the upside as the major indexes are showing slight gains. Economic news has been mixed but hasn’t been much of a factor and the “high profile” earnings reports are already out of the way for the week. Strength has been in the Financials which has kept the bears at bay.
As far as the boring stuff, the Commerce Department said gross domestic product rose to 2.6%, which was a small increase from its earlier estimate of 2.5%, but below Wall Street’s expected rise to 2.8%. Elsewhere, the National Association of Realtors said that the sales of existing homes rose 5.6% in November to 4.6 million which was also slightly below estimates.
Currently, the Dow is up 12 points to 11,545 while the S&P 500 is up 3 points to 1,258. The Nasdaq is showing a 4 point pop and is at 2,671.
One stock that has been on fire this week is Patriot Coal (PCX, $18.58, down $0.13) which jumped another 7% yesterday following Monday’s 7% pop on an upgrade. Although shares are slightly lower today, they did make a run past $19 in early morning trading.
If you recall, this was our featured covered call trade for the Weekly Wrap before it went to a subscription based service and we recommended buying the stock while at the same time, selling a call option for every 100 shares you purchased.
We also profiled another covered call trade for our daily service which is showing a profit as well and will be included in the Weekly. Folks, covered calls are an easy way to learn options and participate in a stock that has the potential to go up.
We only look for premium trades that are going to make you money and although these types of trades are “boring”, they are also safe AND they let you enjoy any dividend payouts – providing shares aren’t “called” away from you by the expiration date on the options you sold.
Remember, we are currently running an incredible deal right now which includes our option trading manual, “How to Trade Options on Momentum Stocks” and “Momentum Stocks Watch List”, for FREE when you purchase a 1-year subscription to either our daily or weekly newsletters.
We honestly feel this is one of the very best and easiest options trading manuals that you will find on the internet and includes ongoing videos.
We are offering this deal because we want you as long-term subscribers and we want to teach you how to find incredible trades by using solid fundamental and technical analysis. We have been on a roll since October as we have nearly a 90% win rate on our trades since then. Folks, it has been a choppy year but we told you when the market broke out of its range and a trend developed then it would be easier to trade the market and options.
After 6 months of a trading range from hell we tried to stay even with the market and our portfolio is showing a gain for the year as we have hit on nearly 65% on our trades overall. We have profiled 5 triple-digit winning trades since the breakout but we see even better opportunities in 2011.
We aren’t sure if the trend will continue to be as strong as it is now to start 2011 but we are expecting a bullish run through April. Of course, there will be volatility along the way but a lot of investors are buying the market and money flow is strong.
We are offering these special deals because we don’t want you to stay with us just for a month. We want you with us for the entire year so you can learn how the market works and we want you to realize that trading is for the long haul. We have down months just like everyone else but we always look at the big picture which is how you did for the year.
Most newsletters or option services will not show you there track record or don’t even have one. There is a reason for that. We don’t roll that way. Our track records are updated and posted on our website Weekly and our OPEN positions are covered TWICE a day.
In fact, many option services are shutting down shop until the New Year and are only providing an update if something happens to your position. Some option newsletters only provide an update every few days or once a week. This is crazy.
The market changes daily, weekly, and monthly which is why we update our positions twice a day and we will keep working to find new trades this week and next.
We seriously believe if you purchase our option trading manual, read our updates, and follow our videos, you will become a successful option trader. Remember, this deal is only good through the end of 2010 and is the perfect gift to yourself to learn how to trade options. If you have questions, email us.
We will be back in the morning with a fresh outlook but current subscribers can check the Members Area for the latest trade updates.
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