No movement in the S&P 500 means little movement in the technicals. Until the market sentiment picks a direction, we may be trapped around this level. Part of the problem seems to be the indecision around the Federal Reserve’s tapering. Specifically, is there enough economic strength to outweigh the loss of the extra liquidity from QE? I don’t have an answer, and neither do the markets right now.
The S&P 500 levels to watch today:
UPSIDE: 1840 (2 data points), 1845 (January 2nd’s high), 1849 (December’s high and the all-time high), and 1865 (top of the Bollinger Bands).
LAST CLOSE: 1837, inside the 1837-1838 (2 data points) range.
DOWNSIDE: 1831 (January 8th’s low), 1827-1829 (3 data points), 1823 (January 6th’s low), 1817 (20 day moving average), 1813 (November’s high), 1797 (50 day moving average), 1775 (October’s high), and 1768 (bottom of the Bollinger Bands).
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Ed's Talking Stock 
For those of you interesting in trading, you really should take a look at JMB’s tip on ibank.com. Definitely on my radar to follow. Thanks JMB for sharing.
To underscore my recommendation (yesterday) of the Option Addict and his stock picking ability (and because I am excited for having followed this particular trade), yesterday I entered a trade in CMG based on OA’s recommendation of this stock as a YOLO trade (You Only Live Once ; i.e., short-term expiration option that you enter expecting to either win big or lose it all) (Note: This was the first time I’ve participated in his, close to weekly (i.e., the frequency with which he posts YOLO trade ideas), YOLO recommendations). About half an hour before the close, I bought a single January 10th $540 strike call option in CMG, this morning I exited the trade for a ~320% gain. If I’d been watching earlier (and less hesitant to sell (I was being greedy… *smile*)), I probably could have made closer to 450%. As I got in the trade rater late (if I’d gotten into the trade earlier in the morning at/closer to CMGs low for the day (yesterday), the trade could have been even better.
JMB, where on the site did you find the YOLO trade recommendation on CMG?
It was here: http://ibankcoin.com/option_addict/2014/01/08/oa-buy-vjet/ Search within the page for cmg and you’ll see OA’s CMG YOLO posting at 15:19 (he’d mentioned it in his After Hours recording as well which is why I was keeping an eye out to see whether he actually entered the trade).
Good luck guys. I read through it, not my style.
JMB is there a large amount of content free? I glanced at it yesterday and didn’t get the structure.
Bill, Everything that is posted on the blogs is basically free. After that, there are the subscription services (I believe that the OA has a free 1hr video if you’d like to get a broad handle on his approach). After that, just pay attention to the blog postings (where buys and sells are posted (not all of them, but quite a number of them)) and the comments sections of the blog posts (where other people post their ideas, entries, exits, targets, etc.). Below is his blog positing at the beginning of the week where he laid out what he thought would be stocks that moved this week; in the comments section one poster posted a bunch of information on targets, etc.
http://ibankcoin.com/option_addict/2014/01/05/watchlist-5/
Thank you
Saw where Ed’s ndz had solid earnings and is up 11% today. I think they are an interesting one to keep an eye upon.
Marshall, one thing to keep in mind with NDZ, on their earnings call, management said they were expecting about 2-3% growth in revenues long-term. While I think it’s a solid company, they are nearing the end of the significant growth stage, and they will need to start paying a dividend in the not-too-distant future.
What do you guys think about AT?? It pays almost 11% div.
ted,
At the beginning of 2013, AT was trading above $12. now, it’s above $3, because they cut their dividend last year.
Keep in mind, AT is a very “project-oriented” company. They build power-generating units for various utilities and private companies. When the project work is there, they’re great. When the work dries up, not so much. And they are in a dry spell.
They are bleeding cash right now, and that is a big concern for the continuation of that dividend. Unless you believe they will bounce back, I’d avoid them.
thanks Ed. I appreciate this…
My pleasure ted. I love talking specific stocks. It’s fun! (I’m weird, I know…) 🙂