eot-position-update-November-19-2014

November 19, 2014

Market Snapshot

The S&P 500 is pushing to new highs on the back of strength in the technology, healthcare, and consumer sectors.

Investors seem to be extremely bullish about everything but oil these days.

In fact, the American Association of Individual Investors Sentiment Survey increased again last week… it’s now at the highest percentage of bulls since December of 2010!

Everyone seems to be optimistic and content right now… that makes me nervous.

But I have to admit it’s hard to poke holes in the bullish case for stocks.

The Fed continues to do and say the right things. Economic data isn’t too hot or too cold.  Corporate profits continue to beat expectations.  And the drop in oil prices is expected to be a net positive to the economy.

If those conditions remain the same, then there’s little reason not to be bullish.

Let’s move onto the updates…

Position Updates

Just a quick note:  Remember, we won’t update every open position every week.  I try to focus on the positions that have some significant news or price movement.

KATE January 16th 2015 $32 Calls
KATE is starting to move to the upside over the last few days.  This consumer discretionary stock should be a big winner this holiday season.  Continue holding… Resistance is at $33.00 and $36.00.  Support is at $27.50 and $25.00.

GLOG February 20th 2015 $20 Calls
GLOG will announce the results from their third quarter on November 20th.  I’m expecting this to be a bullish catalyst for the stock after the period of volatility. Continue holding.  Resistance is at $24.00 and $28.00.  Support is at $14.00 and $13.00.

CVX December 19th 2014 $120 Calls
CVX has a long history of growth regardless of whether oil prices are sinking or soaring. And the stock is just too cheap for investors to ignore for very long.  The stock has been in a period of consolidation after bouncing back from oversold conditions.  The next leg higher should come before this option expires next month.  Look to exit this trade around $122.00.

Category: EOT Update