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Showing posts from August, 2009

Capitalizing on Healthcare

The hot topic in the political world has been health care. As the Obama administration struggles to showcase its health care plan, it's important to realize the implications on health care companies. In looking at United Health Care along with other big health insurance companies, they are clearly a major player. With volatility on the rise in this sector what this all means is that one can expect to profit from the unknowns of the health care debate. Last week, on the "Half-time" Report, I had a chance to discuss retail stocks such as target. I have seen a lot of bullish activity with call buying for September. If the market can not only test its highs but also set new ones, it would be a great sign for stocks such as Target. However, if we do not set new highs, this could put a lot of pressure on them. This is a classic example of why purchasing a call rather than owning the stock outright is better by limiting your exposure

A market of Uncertainty

As we saw some of those pullbacks in the market on Monday, Dan Deming was on CNBC to give some perspective. As he points out, we have seen some premiums in back month VIX futures which are trading higher than the cash. Also since Monday's movement in the market was rather drastic, the vix has also moved in a drastic way up nearly 15 percent. Click below to hear the interview as well as some of Dan's quotes from an article CNBC's "Market Insider".

Summer Pullbacks

Just as the summer is soon to be coming to a close, last Friday the sentiment was that summer rally is also soon coming to an end. On my latest appearance on the "Halftime Report", I discuss how Vix levels remain high compared to the actual daily moves of the market. In the latest consumer data, I was a bit surprised that the market had taken a move to the downside. As the S&P dipped below 1,000, it may mean that it's a good time to go long again. As far as Financials, we are seeing a lot of put protection in Wells Fargo September and October puts. I think this amount of protection will allow investors to be confident when buying into pullbacks. In the retail sector, with Target currently at 42.03 set to report on Tuesday, I see bullishness to the upside, with options behaving in line to what happened prior to Walmart's report. Here my thoughts in greater detail by clicking below.

All Eyes Point to Higher Market Levels

Seeing the market rally continue can mean only good things for the economy. We are seeing a continued ease of pressure of volatility which has taken the fear out of this market. I'm also seeing more bearish protective trading in the option pits. Last Friday, With these positive signs, as long as investors are protected we should see this rally continue. Hear more as I had a chance to go in greater detail on last Friday's "Halftime Report"

1050 and Counting

The current summer rally is appearing like it may not end just yet. On Monday's "Halftime Report" I had another opportunity to discuss the latest VIX analysis. As I state on the show, last Friday, we saw a big bullish play on the August 1000 calls on the S&P. With the VIX remaining elevated, we are seeing investors continue to buy options as means of protection against a downside move, limiting their downside risk. What this all means is that we should see some steady gains until the 1050 mark. In other topics on the show, I remained strong in my Ford play as I see some upside potential in the stock.

Over Paying for Protection

On Friday's "Halftime Report" I not only continued on with my lecture on over paying for market protection, but also had a chance to discuss other topics such as the auto industry. On topic was Ford Motor Co. I believe there is a direct correlation to the economy and auto sales. Once the economy does recover, stocks such as Ford will recover with it.

Heading towards 1,000

This past week we saw some continued gains to the summer rally. I had a chance to discuss my latest thoughts on the market on CNBC's "The Halftime Report" last Thursday and Friday. On topic was the rally. When we see a rally like this it's always important to have your eyes on the VIX. The VIX currently is priced at 25, however September and October futures are priced around 30. What all of this may mean is that investors are seeking some protection. As I discuss on the show on the both days, I believe there has been some over buying for this protection. This may be why the market is continuing to rally and not pulling back just yet. In other topics, I discuss why Disney stock may not be going past 30, but at the same time may be a good dividend stocks. And, since the VIX is dropping the fear out of this market isn't what it used to be which makes investing in stocks and options your best option in compared to treasuries as we head towards 1,000 on the S&P.