UPDATE 9.16.2012 With a nice rally higher, the October 5 Calls are worth $1.45, good for over 10% gains, but I am leaving them on as the chart looks strog.
UPDATE 9.21.2012 With the Stock moving up by over 28% today, these Calls went from $1.45 to $3.10 and good for 2.5 times my money. I have NOT takin any profits off yet.
The S&P 500 is currently up around 1.91% with financials and materials leading the rally, the DOW is up 1.73%, and the Nasdaq is up over 2%. The VIX has fallen to near 16.
JPMorgan and Bank of America are leading the rally in the Dow up 3.8% and 4.54% respectively.
James Ramelli UIUC graduate in Finance. Email:james@keeneonthemarket.com Follow: @Jim_KOTM
The big story of the morning comes from Europe, as news from the European Central Bank drove the EUR/USD up higher 0.31%. Oil, Gold, and Silver futures all moved higher 1.09%, 0.95%, and 1.69% respectively. US indices futures are all up around 0.5%.
Navistar International Corp (NAV) moved 2% yesterday after a positive earnings report. Third quarter income was $84 million compared with last year’s 1.4 billion. Revenues in the third quarter were down 6 percent from the third quarter of 2011. The EPA issued a ruling on NCPs for highway diesel engines last week but NAV claims it is prepared with plans to transition to a new clean engine solution by 2013.
Amazon.com Inc. (AMZN) is said to reveal a new Kindle Fire product. An ad last night showed the new Kindle e-read and new Fire. Last week Amazon announced that it had sold out of the Kindle Fire. AMZN is sitting at 246.50.
UPDATE 9.16.2012 The home builders continue to look strong, but I said that I will not take this position off until expiration, because I think the it is chopping myself up too much in commissions.
Update 9.21.2012 This Put Spread is now worth $.05, but I am leaving this trade on until expiration.
DIS hit a new all time high today and, so far in 2012, DIS is up 36%.“The Avengers” and moreover the Marvel acquisition is proving to be a great move for the equity.
In the financial sector, GS broke above the 150-day moving average, which resisted price on two prior occasions in the last two weeks (8/21 and 9/4) for it has been grinding horizontally.
Other stocks of interest include AAPL, which battled its was back to unchanged after being down earlier today; even in the face of a slow market.
Be sure to check out our StockTwits account, where we will be a lot more active, tweeting out charts and analysis.
