Daily Issues

Trades Update

July 29, 2014

As August approaches, the S&P 500 remains in a tight 25-point range with a slight upside bias, even in the face of many antagonistic geopolitical situations that are still unfolding. However, today, the market learned that consumer confidence hit the highest reading since October 2007, thanks to cheap gas, a rising stock market and improved job prospects.

Since stocks seem to want to trade higher amid a busy earnings calendar, we'll continue with our bullish approach. Many of our open trades advanced today; let's take a look at the latest tape.

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Deals and a Default Dominate the Headlines

July 28, 2014

Merger news appeared to offer the most support for investors, starting with the stunningly rich bid by steep discounter Dollar Tree (DLTR) for rival Family Dollar (FDO) at $74.50 in cash and stock. On the other side of the continent, online real estate powerhouse Zillow (Z) announced it would move into Trulia (TRLA) for a mere $3.5 billion in stock, which sent the latter's shares higher by 15.4%.

It also looks like Argentina is on track to default on its debt again. The country has until Wednesday to make an interest payment of $539 million. Maybe it could hold a bake sale. It is widely believed that a default will lead to capital outflows and higher inflation, as well as exacerbate the country's recession. However, the experts say that they do not expect any contagion from an Argentine default as the country has a limited number of trading partners at this point, and the development has been widely expected.

So, we'll maintain our bullish bias and I have a new idea for you that's a bit different from our usual trades.

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Trades Update

July 25, 2014

Several high-profile earnings that hit the mark but came in short of whisper estimates took some of the short-term wind out of the sails of this week's rally. Shares of (AMZN), Visa (V) and Starbucks (SBUX) took a small bite out of the otherwise upbeat tone surrounding most companies' second-quarter results.

Our open trades continue to exhibit relative strength in this tough market, with one hitting its second profit target today. We also took gains in another after it hit a protective stop.

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With the markets trading near all-time highs, where do you think the S&P 500 will be at the end of the year?

  • 2,100 or greater
  • 2,000 - 2,100
  • 1,900 - 2,000
  • 1,900 or lower