Top of the morning friends.  It’s hard to believe it’s already humpday.  Yesterday the bullish push produced some very nice gains for me but it’s a shame they were not able to hold on to the daily highs.  At the end of the day the bears were gaining control but until support is breached I’m not going to worry about it.  And though I’m not going to worry about I’m going to plan to take profits on trades faster than normal.  A stock that gaps up or down in my trade direction will be considered a gift and I will quickly ring the register.  Keep that in mind as we continue to chop in this range.

We have an oil status report this morning at 10:30 eastern and a Fed speaker in the early afternoon.  Oil futures are currently pointing higher but keep in mind a surprise build in supply will not only affect oil but also the market as a whole.  A surprise decline in supply, on the other hand, could prove to be bullish overall.

RWO room will be open today but I will have to take it slow.  Between the fits of coughing and a weak voice it may have several starts and stops but I will muddle through the best I can.

Trade Wisely,

Doug

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Good Morning and sorry I was not able to get anything out prior to the open.  Although I was in the hospital overnight I am feeling much better and should be back on my feet tomorrow.

I am severally handicapped this morning using an iPad to look at charts for there are a few things that I wanted to share.  First, I sold my FCX position on the gap up this morning, I also sold my SQ position collecting nice profits on both.  If you have not sold the short calls in MSFT I suggest doing so today.  If you have not sold the BMY short calls that’s okay but just know that I have suggested that they should be sold.  We will be waiting for both stocks to get a move higher to sell additional calls.

A few positions that you may want to consider; PBR is looking really good after breaking the wedge and pulling back.  Consider the APR 10 calls because of the great price and nice open interest.

BABA gaped up to much to chase so we will have to wait on it.

NFLX broke out and is holding nicely keep a close eye on it for an entry.  Earnings will be coming soon but often stocks like this will rally toward the earnings date.

AIG may be setting up keep a close eye on it.

CVS is set up.  It reports on 2/9/17.  The April 75 calls are okay but the better volume is in in the May 75 contracts but either should work.  If you want to lower the cost of the trade consider selling the April 90 strikes for a debit spread.  Just keep in mind the earnings date.

I will post this to the website but if someone could please post in the room that I had sent this out that would be very helpful.  Thank You!  FYI, There is no video attached.

Trade Wisely,

Doug

Good morning!

Last Friday I felt like I was coming down with a cold and by Saturday morning it hit me really hard.  This morning I’m still really sick and due to all the coughing I have no voice.  Because of that, there will be no video attached and I will have to cancel the RWO room today.  I will, however, be around all day motoring trades and looking for new entries.  Please understand any new entries will have no video but I will put together a text version.  Sorry for the inconvenience I don’t expect ti to last long.

This morning the Dow futures are pointing to a slightly bearish open and I think it is time to watch closely for the potential of a rollover.  Let me be clear, I am not expecting a rollover but the failure to breakthrough 20K makes me want to watch closely for signs that the bears are taking over.  Let’s keep in mind that the QQQ is looking very strong so it’s not the time to run for the doors just yet.

We have a couple Fed speakers today and some bond auctions but other than that the economic calendar is quiet and pretty much remains so until Friday when we have several big reports.

The positions in BMY and MSFT are both in very good shape. With earnings approaching I will be working out plans on how we will handle this positions this week.  As you know I hold several stock positions holding modest gains a couple positions holding modest losses.  Such is the nature of a consolidating market if it could breakout I would likely have some very nice profits but if it breaks down I will need to capture some small gains and avoid letting the losers get out of hand.  As always the first and foremost thing to do is manage the positions that you are in!

There is no video attached.

Trade wisely,

Doug

Good morning and Happy Friday!

This morning’ market is all the Employment Situation report that will be out one hour before the market opens putting us retail traders at a major disadvantage.  After the number, the market will react and of course, there is really nothing we can do about it.  There seems to be a little concern that we will see a number softer than expected.  The target is 178,000.  I fit comes in higher expect the market to move up, however, a print lower than 150,000 would likely bring in the bears.

All we can do this morning is to manage the trades that we are in.  The reaction to the number is out of our control but if we remain calm and follow our rules everything should work out just fine.  We also have International Trade numbers and Factory Orders coming out this morning that could a small influence on market direction.

The next hurdle is that we have 4 Fed speakers today.  I doubt we will hear anything new but as you know all one these folks has to do is suggest that they believe we need another interest rate hike soon and the market will react in about half a heartbeat so it would be wise to remain flexible, stay on your toes and be prepared to react is necessary.

Have an awesome day and a fantastic weekend!

Trade wisely,

Doug

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Good morning RWO!

Yesterday’s bullishness had the market dreaming about Dow 20k again but the jobs numbers tossed a monkey wrench into the gears of advancement.   We will likely see just a little bearishness this morning but I’m expecting the market to become very choppy this afternoon.  Before the market open tomorrow we get the really big jobs number, the Employment Situation number and I suspect with the data this morning we will now see a pause as we wait for that number.

Be careful today and let the market settle before entering new risk.

Trade wisely,

Doug

Click Here to Watch the Morning Video