OPTIONSMART MORNING UPDATE: Broke out of its trading range

June 2nd, 2009 at 8:31 am

OPTIONSMART MORNING UPDATE: Broke out of its trading range

1. OUTLOOK:  Broad-based buying effort amid pleasing economic data pushed the tech sector out of its trading range. Cisco will fill GM's slot on the Dow. Juniper Networks downgraded to Hold. The market is poised to extend rally in the near-term.

QQQQ chart

 

2. KEY DRIVERS FOR TODAY: 
  • Personal spending for April declined 0.1% (better than expected), personal income rose surprising 0.5%, construction spending clibed 0.8%  
  • CSCO to replace GM in DJIA effective Jun 8
  • PEP lifts estimates for quarter, year
  • A report on pending home sales in April is on tap at 10 a.m. ET
  • C to be replaced by TRV in DJIA effective Jun 8
  • BCS dropped 11% in pre-market trade as Abu Dhabi's International Petroleum Investment Co. said it was selling 1.3 billion shares
QQQQ's implied volatility inched higher to 27.7
According to our estimates, the NASDAQ index has a 65% probability to close higher today.

3. OUR YESTERDAY'S  "QQQQ ENHANCED PORTFOLIO" TRADES:

HPQ Jul 32/34 Debit Call Spread: Bought @1.30 on 05/20/09 and sold @1.44 on 06/01/09 with a 10.8% gain in 12 days!

 INTC Jun 14/16 Debit Call Spread: Bought @1.51 on 05/04/09 and sold @1.67 on 06/01/09 with a 10.6% gain in 28 days!

QQQQ Jul 32/34 Debit Call Spread: Bought @1.46 on 05/28/09 and sold @1.62 on 06/01/09 with a 11% gain in 4 days!

QQQQ Enhanced Portfolio is our premium blend of QQQQ, ETF and "high momentum" individual stock picks, purposely mixed to offer our preferred members the perfect balance of risk and return. It works like a virtual hedge fund.  

Why QQQQ Enhanced Portfolio:

  • more diversified (includes not only QQQQ option spreads)
  • individually designed (we email portfolio management recommendations)
  • more frequent (5-6 per month) "high momentum" picks
  • average 2009 gain 12% in 12 days
2009 ACTUAL GAINS PER TRADES

Learn more about our "QQQQ Enhanced Portfolio" service! 

4. TRADING OPPORTUNITY: N/a

5. OUR FREE MONTHLY TRADING RECOMMENDATION AUTO-TRADEABLE WITH OUR PARTNER BROKERAGES: to be published  in June.
Our most recent FREE pick has delivered a nice 11% gain just in 8 days!  It is absolutely free. Open your brokerage account, select OptionSmart as an newsletter publisher and Free Picks as a service. You will have our free monthly pick auto-traded. That's it!  You will like it and switch to our paid service very soon...

6. WISDOM NUGGETS:

Trading is a psychological game. Most people think that they're playing against the market, but the market doesn't care. You're really playing against yourself.

7. SPECIAL OFFER: N/A

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