EOT Position Update – January 5, 2011

| January 5, 2011

January 5, 2011

Market Snapshot

The bull market rages on…

It’s great news for our call options.  We’re racking up one huge winner after another.

The big news today was the ADP Employment Report.  It showed private employers expanded payrolls by 297,000 jobs last month.  Almost triple what economists were expecting.

Clearly this is great news for an economy that’s struggled to add jobs up to this point in the recovery.

Keep an eye on the change in non-farm payrolls report Friday.  If the government data confirms the ADP report, we could see stocks accelerate to the upside.

In short, economic growth is accelerating and stocks reaping the benefits.

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.

  AUY April 2011 $12 Calls
AUY has pulled back along with gold prices over the last few days.  The good news is it found support at the 50-day moving average today.  Obviously gold prices are prone to volatile swings and gold mining stocks get taken along for the ride.  I think the gold bull market still has a long way to run.  When gold regains its luster with investors, AUY is set to soar.  Hold tight for now.  Resistance is at $14 and $17.  Support is at $11 and $10.

  BAC May 2011 $13 Calls
BAC has rocketed past our $14 resistance level.  Congratulations to everyone locking in those big gains.  We’re up about 112% on the option right now and its showing no signs of slowing down.  The bank recently reached a settlement with Fannie Mae and Freddie Mac to repurchase troubled home loans.  The settlement removed some of the uncertainty surrounding the stock.  As a result, investors have been pouring back into BAC’s stock.  Aggressive traders should continue holding for bigger gains ahead.  The next resistance is at $17.  Support is at $11 and $10.

  CNH June 2011 $55 Calls
CNH is regaining its bullish momentum.  The stock cleared $50 today and it’s now up more than 13% since our trade alert.  Our option is up an impressive 69% so far. Obviously more investors are buying into the agricultural equipment maker’s potential. That’s great news for the stock and our option.  Hold tight for further gains ahead. Resistance is at $54 and $60.  Support is at $35 and $31.50.

  MCP March 2011 $45 Calls
MCP continues to run.  Our option hit a monstrous 683% gain yesterday!  Clearly the speculative bull market surrounding the rare earth element miner knows no bounds. Congratulations to everyone locking in these super-sized gains.

  ADBE January 2011 $27 Calls
ADBE is yet another huge winner.  Our option hit a peak gain of 203% today!  The software maker hasn’t slowed down since reporting quarterly earnings.  Clearly investors love the better than expected earnings forecast for the 1st quarter of 2011. Keep an eye on ADBE as it approaches the next resistance at $33.50.

Category: EOT Update

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