EOT Position Update – March 4, 2015
Market Snapshot
Any way you look at it, February was a great month for stocks…
The ‘risk on’ trade and bullish sentiment swept into the market. It pushed the S&P 500 to a new high of 2,119. The large cap index is now up more than 3% for the year.
What’s more, the NASDAQ eclipsed 5,000 for the first time since the peak of the dot.com boom in 2000.
We’ve seen strong performance out of several sectors over the last month. The sectors with the best performance were consumer discretionary, basic materials, and technology.
The main catalyst for the upward surge in stocks has been strong earnings, low oil prices, and improving prospects for global economic growth.
Now that earnings season is over and there’s relative calm on the geopolitical front around the globe, there’s not much for investors to be concerned about at the moment.
There’s sure to be the typical market ebbs and flows, but the markets seem destined to continue their bullish uptrend from here.
Let’s move onto the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. We try to focus on the positions that have some significant news or price movement.
WEN May 15th 2015 $11 Calls
WEN is our latest trade. The stock has been holding steady since the trade alert went out. So everyone should have been able to get into this trade at a good price. Resistance is at $12.00 and $13.00. Support is at $10.20 and $9.50.
DOW March 20th 2015 $48 Puts
DOW continues to hold right below the 200-day moving average. It hasn’t pulled back from this technical resistance level as quickly as I thought I would. But there’s still time for the selloff to materialize. Continue holding… Resistance is at $51.00 and $52.00. Support is at $46.00 and $43.00.
STI April 17th 2015 $41 Calls
STI is consolidating its recent gains with the upward trending price channel. The next leg higher should take it up toward our next resistance at $42.50. Aggressive traders should continue holding. Support is at $37.50 and $35.00.
Category: EOT Update
