EOT position update September 17, 2014
September 17, 2014
Market Snapshot
It’s been smooth sailing for the S&P 500 lately.
The US large cap index was down a bit last week after 5 straight weeks of gains. The feeling was that investors were waiting for today – Fed Day – before making any big moves in the market.
After much speculation about the Fed’s forward guidance on interest rates, the Fed essentially said… ‘The economy hasn’t changed course, so neither did we. If it does in the future, we will to.’
The Fed did say they’re ending their stimulus program next month. They’ve been tapering off their bond buying for several months now, so that’s not a surprise.
The US Dollar has also been moving higher recently. The strength of the US Dollar has hurt oil prices and energy stocks.
The good news is that the decline in oil prices should be good news for US consumers. The lower cost of gas at the pump should leave more money for consumers to spend on everything else.
In short, there’s nothing in today’s Fed news that should cause the markets to change course.
And right now, the S&P 500 is trending higher. It doesn’t matter what time frame you look at… long-, medium-, or short-term all shows the same thing, large-cap US stocks are moving higher.
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.
AAPL October 17th 2014 $105 Calls
AAPL had a great week post-iPhone 6 launch. The bullish sentiment toward Apple is a great sign for our call options. Continue holding for the next leg higher… Resistance is at $105.00 and $110.00. Support is at $95.00 and $94.00.
BDBD December 19th 2014 $12.50 Calls
BDBD is clearly benefiting from changing consumer preferences. The stock’s recent price action is quickly establishing a bullish uptrend. That’s good news for aggressive traders looking to hit a home run on this trade. With three months until these options expire, there’s plenty of time for BDBD to reach the next resistance is at $17.50. Support is at $12.00 and $11.00.
TPLM October 2014 $12.50 Calls
TPLM has held up well despite the overall headwinds in the energy sector. A strengthening US Dollar and falling oil prices have been hurting energy stocks lately. The fundamentals for TPLM are strong, the stock is undervalued, and the company could announce the spinoff of its fracking business at any time. If TPLM can breakout above $12.00 per share in the next week or two, it could still make a run at our resistance levels before these options expire next month. Continue holding… Resistance is at $14.00 and $17.50. Support is at $10.00.
Category: EOT Update
