The markets

The Nasdaq moved up last night and hit a new all-time high. Many of the FAANG stocks were also up. Facebook, one of our earnings, has doubled in value since we got in. We are looking to exit Facebook, but it was up $1.57 on Monday. Amazon was up $13.28. Apple, yet another of our earnings trades, was up $1.82. I must say that we are banking some nice profits!

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The Russell 2000 was up 0.14%, but all the other indexes were down. The S&P 500 was down 0.11%, the industrials were down 0.31%, and the transports were down the most, 0.45%.

The sectors

On Monday I advised you to watch biotech. On Friday it broke above the crucial resistance level of 323. Overnight biotech was the sector that moved up the most – it was a good call on my part to advise you to watch biotech! Financials was up the second most at 0.44%, followed by technology, up 0.24%. The worst performing sector was utilities, down 0.94%. Clearly more money is flowing into biotech (I did point that out about that last week). A biotech trade the elite program entered into a week ago was up again on Monday – AAOI was up $5.68 or 6.31%. That’s a wonderful move up for the trade, but many of our trades are doing exceptionally well and I am very happy with our trade portfolio. We are waiting on a number of the major technology companies to report their earnings. I’m excited!

Economic news

There is some impending economic news that could impact the market this week. This Wednesday the Federal Reserve Meeting announcement comes out at 2pm. New US house sales figures also come out on Wednesday, at 10am. Durable good sales figures will be released on Thursday at 8.30am. And the latest US GDP (Gross Domestic Product – total economic output) comes out at 8.30am on Friday. Those are all major announcements and could easily move the market. A great website to keep abreast of economic news is:

Remember again that the earning reports of several major technology companies are also looming. Facebook will report earnings today Wednesday, just after the market closes at 4.10pm (US Eastern Time). We are expecting these earnings announcements to of course impact the Nasdaq.

International markets

It is important to be across what is happening in overseas markets. The Asian markets have been flat on the opening on Tuesday. I always advise the elite students to study the Asian and European markets, as any major moves up or down could impact the US market.

Going forward …

I still have my eyes on Biotech. That’s where the money has been for us. I am also excited about the imminent announcement of earnings from the major technology companies.

The elite students will be doing a great deal of trade management. We will be locking in a lot of profit, closing our positions, rolling up and creating riskless trades. I believe position management is the key to successful trading. Making money with options is very easy, but it is not the making of money, but rather the money you keep that determines your profitability long-term. We want to follow professional risk-management practices, lock-in profits and take risk off the table. We want to keep the money we make!