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Terror Attack in NYC sends markets down. Stopped out of BAC position.

Our thoughts and prayers go out to all effected by the incident in NYC today by the terrorist incident. This incident appears to have been the catalyst for the sudden yet brief drop in the markets and for momentary drop that caused the BAC alert to hit the stop loss. We still think that the BAC position for those still in the trade will be profitable. It did hit a high of .95 cents today. Bank of America should do well with upcoming expectations of a December rate hike by the Fed.

Blowout Earnings & GDP Moved Markets to New Highs

Thursday night earnings were released by numerous companies. Those numbers boosted the markets and the futures before the open Friday. Some of the companies included big names like Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT) and others. Then, Friday morning before the open the GDP was reported at 3.0% and that was the icing on the cake boosting markets to record highs Friday. Amazon reported 52 cents a share, blowing out Thomson Reuters estimate of 3 cents and adding $6 billion to Jeff Bezos' fortune making him the richest man in America! Amazon Web Services (AWS). the company's cloud business, was its main driver for growth with sales increasing 42%. There certainly are skeptics abo

Do Morningstar Ratings Work?

In a very interesting article, today in the Wall Street Journal (WSJ), it is suggested that the coveted Morningstar ratings, relied upon by thousands of money managers, investment companies and individuals may not be performing as anticipated. There's about $16 trillion invested in mutual funds, by thousands of professionals and novices around the globe. Those people have relied upon the number of stars awarded to a mutual fund by Morningstar to guide them with the investment of trillions! The Wall Street Journal tested Morningstar’s ratings dating back to 2003, and found that the vast majority of the highly rated (starred) funds failed to perform. Now we've all read that past performance

Markets were down today - We added 11% gains - Now up 721% YTD

Most people lost money today! If you are working with Optik Options you had a 11% plus gain today on the SPY ETF alert. Tomorrow earnings are on deck for big players such as Alphabet (GOOGL), Amazon, Microsoft and many others. Lets wee what happens with that and also GDP release Friday morning. Stocks pulled back today on what the talking heads stated were concerns of interest rate hikes. Congratulations to those who added 11% plus to their portfolios today.

Big Earnings Week & GDP Friday

This is the biggest week for the reporting of corporate earnings and Friday we will have a potentially market moving GDP release at 8:30 EST. Over 800 companies are expected to report this week, including a bunch of prominent large cap companies. Markets experienced a slight dip yesterday and we issued an alert on the SPY ETF. The GDP report on Friday is a key economic indicator.

Up Up and Away - 48% Plus Return on SPY Alert

We issued an alert yesterday to buy the SPY ETF and it paid off with at least a 48% return and some subscribers reporting over 70% in one day! Congratulations! We are at about 700% YTD and still think we may break through 1,000%. The Dow has been on an incredible run and sliced through 23,000 this week. These highs often create a psychological challenge for traders concerned that a correction must be around the corner. The S&P 500 and NASDAQ followed suit with new highs as well. Financials are moving up (XLF, +0.53%) in anticipation of a December rate hike. Geopolitical fears are still present with the Director of the CIA stating that the DPRK will have nuclear delivery capability somet

Fear the Sevens?

In years that end in the number seven, such as 2017, markets have experienced a correction of some level. In fact, the average decline, going back for 130 years, has been about 13%. But 2017 looks to be the year to end this streak. Since 1887, even before the DOW, markets have suffered downturns between August and November. We are in mid October so there is still time and if it were to occur we think that it would be drastic. The most significant drop was in 1987, 30 years ago this Thursday, where the DOW dropped 22.6%. It is on record as the worst single-day loss ever for the markets. The worst drop an entire year containing the dreaded number 7 was in 1937 during the Great Depression w

Earnings Should Make New Highs

We are entering the third quarter earnings season. Markets keep grinding higher. The CBOE Volatility Index is dragging at all time lows. Geopolitical issues keep simmering but the markets seem somewhat desensitized with little reaction even on Friday when Trump was making remarks concerning Iran. Banks started reporting this week and next week the earnings reports pick up with a slew of S&P 500 components reporting. One of the more important data metrics tracked each week is the “upward versus downward” estimate of earnings revisions within the S&P 500. The quarter has seen upward revisions outpace downward revisions, which is setting up the markets for more new highs. The anticipated Q3 ’1

New Heights Once Again

It is like driving down Highway 101 in California along the Pacific Ocean. Every time you round a curve and are astonished by the beauty of it all you think – that’s it, it can’t get better. But sure enough, you round another turn, and another, and another and it is magnificent. That’s what seems to be happening in this incredible bull run. We think – “that’s it, has to be a pullback” – and zip, nada. It goes up. Right now there are several factors pushing the market up. First, the geopolitical rhetoric seems to now be ignored by the markets. Rightfully so as one person stated – if there’s a nuclear war and we are all wiped out then my investments don’t amount to anything, but if nothing

Robotics and Artificial Intelligence

Computers keep getting cheaper to the point in 2-5 years many people will be able to afford a supercomputer with multiple ultra high-speed connections to the internet. Coupled with this artificial intelligence (AI) continues to improve and is also becoming more affordable. What’s all that mean? As robotics improve many companies will want to replace costly personnel with robots. The companies that don't may get put out of business. To some it sounds like science fiction but we only need to look at our own history and the things once deemed impossible are now routine. One such example is the Dick Tracy comics where Dick had a wristwatch with a two way radio. People laughed at Dick Tracy

NFLX - Stopped Out then Returned over 780%

We issued an alert this week for NFLX and we were spot on - with one exception. The market got whipsawed for a moment and if you adhered to our stop loss you exited and lost 14% on the trade. However, about 30 minuted later NFLX took off. In the days after there was mush positive news and an upgrade on NFLX as well. The result was if you were fortunate enough to have held NFLX to the expiration date it moved from our entry price of $2.25 to over $20 a contract. A return in excess of 780%. November is historically the entry of the best market period and we hope to capitalize on that fact. However, we are also faced with some geopolitical issues, the Fed hiking rates and many people think th

Any End to the Bull Market?

It does not seem so! This market moves higher and higher. Sure there are some very minor bumps generating small pullbacks. But there has not been a "real correction" since March 9, 2009. In fact, we did a little analysis today and looked back 24 years at the SPY ETF. Even in bear markets we found a surprising fact. If you look at the lowest price of the SPY, in any month going back to January 1993, and then look at the highest price the following month there is not one time that the high price the next month did not exceed the low price of the previous month. You would think that on some occasions the market would be dropping to the point that the high price would be lower then the low o

Timing is Everything

Timing is everything! Yesterday we saw an opportunity with Netflix (NFLX) and issued an alert. Looking back we probably set the stop loss too tight at only 13.4%. But all the indicators and historical data indicated we bottomed. The alert was a limit order to buy NFLX Oct 6 2017 $177.5 Calls at $2.25 with a stop loss of $1.95 and a 40% target return at $3.15. Things looked great, after issuing the alert the option was up 8%. Then we saw some strange activity in the markets. The SPY dropped at 3pm (only for a moment) from 252.13 to 251.29, a whipsaw that acted upon NFLX and causing in to momentarily hit the stop loss. NFLX immediately came back above the stop loss and this morning looks to o

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