Weekend Newsletter for January 16, 2005 Please forward to a friend! (Subscribe)
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Table Of Contents
STATE OF THE MARKETS
TOP GUNS TRADING
SUCCESS TRADING GROUP
DIVIDEND CAPTURE
OPTION TRADER
COVERED CALLS
The Week At A Glance According To The Charts
  
STATE OF THE MARKETS -- by David Moenning
David Moenning
Editor |
Happy Anniversary (Sort of)
- Happy Anniversary (Sort of)
- Possible Stumbling Blocks for the Bulls
- Current Short Term Trading Strategy
- Top Guns Trading Roundup
Read Our "State Of The Markets" Entire Weekend Summary
TOP GUNS REAL-TIME TRADING ALERTS -- by David Moenning
The Top Guns, are top rated stocks in the top rated industry groups. We start with a proprietary list of 1500 Stocks - the largest, most liquid stocks traded in the United States. On a weekly basis, we then narrow the field to our Top Guns Universe. This process begins by identifying the top Industry Groups in terms of Relative Strength, Momentum, and Industry Indicators. Next, every stock is ranked in terms of Earnings Strength, Earnings Momentum and Company Performance. We then generate a list of only those stocks ranked 9.5 – 10.0 (out of 10.0), which are also in the top Industry Groups. This cuts the field to approximately 60 - 75 "Top Guns."
Next, our Stock Selection Team reviews each chart from a technical standpoint in search of the best short-term trading opportunities. The result of this effort is our short-list of trading candidates for the week. We then monitor the market for opportunities. Whenever we are ready to enter a trade, we send a real-time Trading Alert email with all the important details. The alerts are concise and to the point. We tell you exactly what we are buying, the target price, what kind of order we are entering, and the strategy behind the trade.
In 2004, our Top Guns closed 107 Winning trades and 9 Losing Trades.
Here's a Top Guns Play we just closed and insights into our trading strategy:
COP (ConocoPhillips)
Company Profile
Trade Summary: 1/6/05 Bought at $85.09 -- 1/13/05 Sold at $88.94 -- Gain of 4.52% (5 trading days)
Trade Strategy: Buy Rationale (from our original "Alert" dated 1-6-05): With the market down 3 straight days in '05 and becoming oversold, it is time to start preparing for the next rally phase. We are adding COP because our portfolio is underweight in energy and the chart is appealing at this level. COP has retreated to the low end of the range and now appears to be turning upward thru the bottom Bollinger band. In addition, we feel that analyst estimates for integrated oil companies still incorporate assumptions for oil prices which are too low. The combination of a depressed market, an oversold condition, and a decent entry point tells us to begin adding exposure - so we will initiate a position in COP.
Sell Rationale (from our original "Alert" dated 1-13-05): Stocks continue to struggle and today's culprit is another increase in the price of oil. The good news is that the rise in oil prices is helping our trade in COP. With the price of oil having popped in recent days, we will use the strength to take a gain in the more than +4.5% on our trade in COP. The stock is now approaching the upper end of the current trading range and allows us an opportunity to put some gains in the bank for the month and year.
Our "State of The Markets" and Top Guns Real-Time Trading Alert Service has been closing a winning trade about every other day! You may subscribe to BOTH of these reports for ONE monthly price!
Details Here.
SUCCESS TRADING GROUP -- by Anthony Myers 
Anthony Myers
Editor |
Our Success Trading service delivers quality trading ideas for the elite investor that has the financial wherewithal and market nimbleness to profit on small moves in a stock's price. Become a member and you will be provided with email, pager, phone and/or fax alerts intended to provide you with the opportunity to make many, many profitable trades.
MOT (Motorola)
Company Profile
Last weekend I highlighted a trade on Motorola here in the MarketFN.com Weekend Issue.
The trade turned out successful as Motorola traded in an over 80 cent range last week.
Our Success Trading Group has closed over 200 winning trades and only 5 losing trades.
Details Here.
DIVIDEND CAPTURING SERVICE -- by Jeffery Maynard 
Jeff Maynard
Editor |
Powerful. One word sums up this strategy. It's a powerful trading strategy. We excel at it. With our dividend plays, we attempt to capture the value of a stock's quarterly, semi-annual, or annual dividend prior to the ex-dividend date.
VLCCF (Knightsbridge Tankers)
Company Profile
Here's an example of play from my Dividend Capture service where we were able to play the volatility of the stock prior to the ex-dividend date.
On 1/11 I bought VLCCF with a limit price of $29.70. was a text book step up. It's a crude oil tanker company with a hefty 12.70% dividend. It will go ex-dividend by February 10th for someplace between $.75 and $1.10. It was a severely oversold due to an analyst speculating that tanker rates were going to collapse. Just after the beginning of the year it dropped from almost $40 to just over $28. $28 was the 200 day moving average. It touched the 200 day moving average and immediately bounced. It confirmed the move the next day. We bought on the initial bounce at $29.70 and took a profit of $1.05/share three days later. It looks like VLCCF may remain in this range until ex-dividend date. If it pulls back to the 200 day moving average, we may enter this position again before ex-dividend date.
Since "going public" with our dividend
trading strategy in September of 2003, we
have experienced only two trading losses!
(And, our 2 losses were only 2.67% and 1.59%)
Details Here.
OPTION TRADER -- by Bill Kraft 
Bill Kraft
Editor |
Our Option Trading Service is for conservative traders that understand leverage pricinciples. We focus on powerful option trading strategies that place volatility and momentum in your favor. And we pride oursleves on mimimizing our losses. We always know our downside potential in a trade.
CHIR (Chiron)
Company Profile
On December 16th, I bought the Jan '06 40 LEAPS calls on Chiron (CHIR) as it made a little bounce off an uptrend line. On January 11th, I was stopped out of those LEAPS calls when the stock dipped below new support at 34.63. The position made a $0.70 a share profit on an original investment of only $2.15 before commissions! That equals a 24.5% return on risk in less than a month! I am looking for a reentry if the stock can close above $34.65.
For those who don't know, LEAPS (longterm equity anticipation securities) are technically securities, but behave like options that expire more than a year out. Ultimately, they become regular options and for my purposes are traded like options. The time value doesn't diminish as quickly for a LEAPS as for a shorter term option. Besides the fact that LEAPS do ultimately expire, they differ from owning stock in that the owner of a LEAPS does not get to vote in corporate elections and does not get dividends if the stock pays dividends. One can sell calls against LEAPS one owns just like selling covered calls although technically, the position when one owns LEAPS and sells other calls against the position is known as a spread.
Try our Option Trader Real-Time Alert Service!
Achieve returns with us like
16.48% return in 5 days!
Details Here.
COVERED CALL SERVICE -- by the Covered Call Team
MOT - Motorola, Inc. is currently trading at $17.03. The February $17 Calls (MOTBR) are trading at $0.95. That provides a return of about 6% if MOT is above $17 on expiration Friday in February.
Company Profile
Learn more about our
8 Covered Call Tables!
Updated after every close.
Details Here.
* * * SCOTTRADE * * *
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Success Trading Group Trade the same stocks over and over. 200 trades with only 5 losses!
Dividend Capture Trading Capture dividends every week with us!
State of the Markets * Real Money Managers * Real-Time Guidance * Real-Time Trade ALERTS!
Swing Trader Over 100 trades with only a handful of losers. (Active traders only).
Option Trader Use the power and leverage inherent in option trading to your advantage!
Commodity Trading Service Now you can trade the commodities markets with a pro! 2004: up 300%
MARKETPLACE Investor's Business Daily: 2-week complimentary subscription delivered to your doorstep!
Taped Seminars: Investing seminars on audio and video to help you profit.
Book Store: Check-out the prices in our firesale section!
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The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Online Investment Services, LP. or the associated editor. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. Past results do not guarantee future performance. Stock investing is risky. Option trading is risky. Futures trading entails great risk where one can lose more than his account balance. We are not licensed or registered in the securities or futures industries. The information presented herein and on the related web sites is presented "as is" without warranty of any kind either express or implied. Although the information has been obtained or derived from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolios of writers for this issue may, in some instances, include securities mentioned herein and on the related web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. No one asscociated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites. By accepting emails, including various paid subscriptions and free email reports and newsletters, you agree to the terms of the MarketFN.com's website Disclaimer, Privacy Policy and Terms of Use provisions as such may be amended from time to time.
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