EOT Position Update – December 30, 2009

December 30, 2009

Market Snapshot

Happy New Year!  Let’s pop some champagne and celebrate our success!  And a toast to your continued health, wealth, and happiness!

Now it’s time for the last update of ’09.  It’s certainly been an eventful year… to say the least.

The markets were in the tank for the first quarter.  Then they staged a magnificent rally over the last nine months.  But thanks to our options, we’re pulling in an average profit of 96% per trade as the market’s sinking or soaring.  (And that includes our open positions that still have room to run!)

It’s looking like 2010 will provide us plenty of opportunities to grab even bigger profits!

As we close out the year, the Santa Claus rally continues pushing the markets higher.

However, it’s starting to look a little long in the tooth.  I wouldn’t be surprised to see a mild pullback to start ’10.  But the market’s trend is still up… and big picture I see the markets heading even higher.

As I pointed out in last week’s update, the short term correction in the US Dollar and gold prices had reached a critical level.  The US Dollar had reached a resistance level and gold had fallen to an area of support.

Not surprisingly, the short term trend for both has reversed.  If the longer term trend of a weaker US Dollar and rising gold prices continues, it should propel the stock market and our call options to new highs.

Remember – Option ticker symbols are changing… For more information, take a look at the December 16th update or you can also call your broker.

Now for 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.

  CSCO Apr 2010 $24 CALLS 
CSCO is heading higher but it’s still below the short term downtrend.  A breakout above the short term downtrend should send shares up quickly.  Hold tight for now. Resistance is at $26 and $29.  Support is at $22.50 and $20.

  NVDA Mar 2010 $15 CALLS (UVACC)
NVDA’s consolidating around $18 after an impressive move higher last week.  The rally sent shares through our first resistance level.  Conservative traders should have locked in a 122% gain!  Aggressive traders should hold tight for the next leg higher. The next resistance is at $20.  Support is at $13 and $12.

  SBUX Apr 2010 $22 CALLS (SSUDV)
SBUX is consolidating between $22 and $23.  Conservative traders should have locked in a solid 86% gain!  Aggressive trader should hold tight for bigger gains ahead.  The next resistance is at $26.  Support is at $18.50 and $17.

  VIT Feb 2010 $17.50 CALLS (VITBW)
After breaking through its short term downtrend, VIT shot up to resistance of the October high, around $20.50.  But selling pressure from people who were “trapped” when they bought at the October high has put a lid on any further gains temporarily. Conservative traders may want to lock in profits early if VIT can’t overcome the selling pressure soon.  Resistance levels are $21 and $22.50.  Support is at $14.50 and $12.65.

  MOT Apr 2010 $10 CALLS (MOTDB)
MOT is stuck in a trading range between $7.80 and $9.35.  Shares are currently at the low end of the range.  Additionally, the technical indicators are indicating the stock is oversold.  MOT should start heading higher from here.  We’re in need of news or some catalyst to get out of this range… the quarterly earnings report in early February could be that catalyst.  Resistance levels are $10 and $12, support is at $7.75 and $7.

  MCRS Mar 2010 $30 CALLS (MFKCF)
MCRS shot higher this week after putting in a new base at $31.  We’re closing in on the next resistance at $33.  Our options are now up 100% for a cool double.Aggressive traders should sit tight for the next leg higher.  Support is at $25 and $22.50.

  MMM Jan 2010 $75 CALLS (MMMAO)
Our 3M calls have already rocketed past both of our resistance levels.  The aggressive traders who are still hanging onto these options are now up a whopping 211%!  These calls are now deep in the money as MMM is now trading north of $84.  The uptrend is showing no signs of cooling off.  Aggressive traders should keep holding for bigger gains.

Category: EOT Update