EOT position update March 12, 2014

| March 12, 2014

March 12, 2014

Market Snapshot

It’s been a quiet week on Wall Street with little in the way of economic news.

The lack of any catalyst to move the market has sent the S&P 500 drifting lower since reaching a new all-time high of 1,883 on Friday.

A slew of economic data will be released over the next week.  Tomorrow we’ll get February retail sales and weekly jobless claims.  On Friday, the March University of Michigan consumer sentiment will be released.

The strength or weakness in these data points will likely set the tone for stocks the rest of the week.  If the economic data follows in the footsteps of last week’s data, it could be just the thing to spur the S&P 500 back to a new all-time high.

Two important notes from last week’s jobs report –

The private sector of the US economy has regained nearly all of the jobs that were lost during the Great Recession.  But the public sector now employs more than half a million fewer people.

And more unemployed people found a job than simply giving up and dropping out of the workforce for the first time in 46 months.

Needless to say, improving labor market conditions should help bolster consumer confidence and empower consumers to spend more money.  That’s good news for consumer discretionary stocks and the market in general.

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.

GILD April 2014 $82.50 Calls
GILD is our most recent trade.  It’s holding right at support of the long-term uptrend. It won’t be long before this great growth stock is moving to the upside again.  Continue holding… Support is at $76 and again at $75.  Resistance is at $85 and $90.

AMZN April 2014 $365 Mini Calls
AMZN’s rally faded after reaching $375 per share last week.  The good news is today’s price action looks to be reversal day.  Continue holding for the next leg higher… Support is at $340 and again at $320.  Resistance is at $380 and $400.

EIGI May 2014 $15 Calls
EIGI sold off today on no news.  The price action of a breakout on strong earnings and a pullback to the breakout isn’t a bad sign.  EIGI should rally from here. I’m not alone in my bullish outlook for this under-the-radar stock.  An analyst at UBS AG has a price target of $22.  Aggressive traders should continue holding for EIGI to make a run at our $20.00 resistance level over the next few months.

Category: EOT Update

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