9:00am (EST)
“Although the indexes are still in a “trading range”, Thursday’s 2+% pullback was a wakeup call for the suit-and-ties who were in the “risk on” mood. It seems now that the same talking heads and slick talking pros are in a “risk-off” state of mind which we told you will limit your possibilities on making money in the market.
We are watching the 100-day moving averages and a break of the upper channel downtrend lines as clues the bulls haven’t given up but the momentum appears to be favoring the bears. This is the last week of June so we could also see some “window dressing” as fund managers lock in any gains for the quarter by Friday. It will also be the last week corporations can try to meet or beat their quarterly results so we could see some more pre-announcements if they are going to miss expectations.
Another market moving headline this week could be the final verdict on the Affordable Care Act. The Supreme Court should announce the ruling by Friday as this will be the last week they are in session for a few months and have run out of time. We mentioned last week this event could impact Healthcare stocks and there will be an important FDA announcement this week on obesity drugs.
Economic news will also play an important role in which way the market trends this week and all of these elements will cause added volatility. We have outlined key areas of support and resistance so we will need to stay focused until we get the all clear sign.” (from 6/24/2012 Weekly Wrap/ Monday Morning Outlook)…
The market took Wall Street on a wild ride last week but finished strong to close out the month of June with solid gains. The bears got off to a good start on Monday as the major indexes fell 1.5%, on average, and pushed support but they failed to keep any momentum as the world awaited word from the European Summit.
Futures were showing a nasty open shortly after Thursday’s close as Nike (NKE, $87.78, down $9.11) and Research In Motion (RIMM, $7.39, down $1.74) disappointed the suit-and-ties with their earnings report cards but turned on a dime late that night when word spread the European Union had come up with a resolution to help stem the debt crisis.
This led to massive short-covering all session long on Friday as the bulls enjoyed their best day of the year. The major indexes were up 2.5%, on average, and cleared resistance.
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