Tag Archives: goog

The Crossroads – Where are we headed?

On April 4th, the market hit a 4 year high as the $SPY touched $142.21. If you had told someone last October that the market would be up nearly 40% 6 months later, they would call you crazy. But that is exactly what happened from the 107.43 low on October 4th. Amongst all the negative sentiment, the market mysteriously found a bottom and rallied furiously, squeezing all the bears... the ones who watched the riots in Greece with glee, the ones who were hoping for someone else's pain to give them glory. We have seen this story over and over. The Eurozone debt situation is not a new problem. The market has been dealing with it for 3 years. We have seen this before, and it will not be the cause for a larger sell off in equities. May's decline has been somewhat orderly. The trading days have lacked the 1-2% swings we became accustomed to in August and October. This is no panic sell-off, its profit taking.  Yes, the USD has been on a major tear, trading up for 14 straight days at one point... the most since 1985!

Looking at that data point alone, I woud assume the markets had a massive sell-off. Yet we are not even in 'correction' territory. It's buy the dip time for me. With the election coming, there is no way the market is allowed to fall any further. Well we shouldn't call it a market, since the Obama administration will pull out all the stops to ensure the "economy" is not the cause for Romney winning. And to make that happen, we will need to have a nice summer rally.

Best way to make money trading, is to be ahead of the curve. Here is what I am doing to ensure I am:

Expect some "buy the pullback" upgrade to come out on your favorite momentum stock. Stocks like Priceline.com(PCLN), LinkedIn(LNKD), Buffalo Wild Wings (BWLD), Panera Bread(PNRA), Chipotle Mexican Grill(CMG), Intuitive Surgical(ISRG), and Starbucks(SBUX).

Buy out of the money calls on those plays to maximize the impending short squeeze. The dumb sheep are the ones who are shorting it based on the chart, and will be covering when they start getting squeezed.

Second, expect some sort of China stimulus. They are missing the talks of their growing economy and want to be back in the spotlight. China can be the key for a nice recovery alone, and China sure knows how to manufacture fake growth to inspire folks to load up on China stocks like Sina.com(SINA) and Baidu(BIDU) as well as the oversold commodity stocks.

We will have more on our watchlist tomorrow, but we are banking on a nice rally coming in the next few weeks. By the time you blink, we will be back over the April highs. Most folks will be scratching their eyes wondering what happened. Here at OptionMillionaires we will be counting our profits.

Take a look at the chart below. Lets have a great week!!!

GOOG (GOOGLE)

People always try the short cut. Its the lazy way. The short cut was buying LNKD SINA RENN and other stocks based on the Facebook IPO.

 

If Facebook is valued possibly at 100 billion, then how can you say Google is only worth 157 billion? Make no sense, and thats why she goes $640+ short term as folks start chasing the trade(Right now she is at $610)

We bought the $625 FEB 10th weekly calls this morning at .55.

 

Happy Trading!

Buy… Buy… Or get the f&ck out of the way….

Everyone on WallStreet has been fore-telling the grand "Santa Clause" rally. The one that will ensure huge bonuses and after work lapdances. That rally seemed to be in jeopardy  to start the week, as the market battled with the 1200 mark on the S&P. But three days later, the S&P has surged more then 4% from its Monday lows, and now sits above the 200 day moving average. A great sign for those looking for a continued move higher over the next few days.

Why?

Well, one could argue that the data coming out for the US economy continues to be somewhat promising. I actually think it doesn't mean anything. Folks will continue to shrug off the numbers and push the tape higher. It will only provide a better opportunity to go short sometime in 2012. For now, follow the big boys and look at some of the plays that have been beaten down on the Europe worries as well as those looking to break into new all-time high levels.

Plays I like into next week are Visa(V), Mastercard(MA), Priceline(PCLN), Caterpiller(CAT), Google(GOOG),Amazon(AMZN), and NKE(Nike).