Weekly Forecast QQQ and watch list for next week

Hey everyone. Next week we are going to be watching two stocks, but first lets talk the Nasdaq, or the QQQ.
First for the daily QQQ. As you can see from the chart below, the daily QQQ will be pulling back a bit for the next few days of next week, barring any big positive news that may come out. Lets look at the chart:

As you can see, the Relative Strength Index and the MACD are dropping. Most of the time when these two indicators drop, the stock follows suite. Now of course news trumps technicals, but if there are no big reports or positive big news, the market will chug along after its indicators.

So I expect the market to correct a bit for the next few days.

Now lets look at the weekly QQQ to see the overall trend for the Nasdaq coming the next week or two:

There is a signal that is showing that there is a top..the most current candle has a longer tail on top which demonstrated that the market pushed the price up this week but could not sustain the push and the price fell making the candle a lower short body with a long tail on top.

So for next week we are going to be using the method where I am looking at earnings at those stocks a few days out. I will be looking for stocks that have bad analysts numbers, numbers showing bad returns and in the red, showing weak against its industry and sector. I will then using these, look for those that have the crowd incorrectly jumping on the stock riding it up high till the stock announces. Then when the stock announces and the price drops, we sell our puts that we bought for a profit.
I will also be posting some news option bounces that I also like to do. Stay tuned for my post this weekend on how I bounce options using the news.

Until Saturday or Sunday when I will post again,

Mark

Read More

Today we exit DRI at even money...here's what happened...very interesting.

Dri did what it was supposed to do. It came out with poor results and it was supposed to drop. But one of its large activist investors stepped up and counteracted these results with a huge plan to revitalize DRI. Knowing that DRI was going to drop because of poor earnings, this investor stepped forward and blunted the news by doing this:

Sept 12 (Reuters) - Olive Garden owner Darden Restaurants Inc on Friday reported a quarterly loss, but its results were overshadowed by activist investor Starboard Value LP's release of its revised plan to boost Darden's profit and stock price.Starboard, one of Darden's largest investors with an 8.8 percent stake, late on Thursday unveiled a 294-slide proposal that included plans to sell Darden's real estate, franchise its restaurants, spin off The Capital Grille, Yard House and other chains and fix the flagship Olive Garden chain.Starboard, which also is seeking to replace Darden's entire 12-member board, said it has identified up to $326 million in cost savings. It believes its strategy could make Darden's stock worth as much as $86 per share, even before it got to work on fixing Olive Garden or selling restaurants to franchisees.Darden shares fell about 1.9 percent to $47.36 in midday trading. The stock has lost more than 12 percent of its value this year.

Darden reported a net loss of $19.3 million, or 14 cents per share, from continuing operations for its first quarter ended Aug. 24. It said quarterly sales at Olive Garden restaurants open at least 16 months fell 1.3 percent. Olive Garden accounts for more than half of Darden's overall revenue and about two-thirds of its profit. Key same-restaurant sales have been down for five straight quarters as it struggled to lure diners amid robust competition.

Starboard launched a fight to take over Darden's board in May, saying the then-pending sale of Darden's Red Lobster seafood restaurant chain was a "destructive transaction" that ignored the rights of shareholders. On July 28, the restaurant operator closed its $2.1 billion sale of Red Lobster without granting shareholders their requested say on the matter. It also announced the year-end departure of Chief Executive Officer Clarence Otis.

That move was the first of several concessions Darden has made to activists, which also include Barington Capital Group.In its latest move, Darden said it would give four board seats to Starboard nominees.Analysts are divided on whether the move would satisfy Starboard and prevent it from seizing board control.

In its presentation, Starboard outlined ways to cut executive costs and simplify everything from purchasing to menus. It specifically plans to boost Olive Garden's alcohol sales, to use technology to eliminate "false waits" for tables at Olive Garden and to roll out more cost-effective digital marketing.

The hedge fund's recipe for fixing Olive Garden also includes better treatment of the chain's pasta, which Starboard called poorly handled and generally overcooked.

"Shockingly, Olive Garden no longer salts the water it uses to boil the pasta, merely to get a longer warranty on its pots" Starboard said.But Olive Garden's "Never Ending Pasta Pass" promotion, which allows consumption of an unlimited amount of pasta, salad, bread and Coca-Cola drinks for seven weeks, appears to have been a success. It sold out quickly on Monday.

Dri's Starboard investor is fighting and screaming like hell to stop the devaluation of this stock and is poured a lot of investment and is spending time with DRI to prop it up. He also timed this news release to blunt the downward force of the poor results. At least we didnt lose money, but you cant see stuff like this coming. This is a direct reason why I dont pick winners 100% of the time. Sometimes there is just an outside force that is outside of my control. Well, back to the earnings board to find another stock to contrarian play. Stay tuned.

Read More

Today we shorted/bought puts on DRI

Yesterday I posted that I would be watching DRI to do a last minute pushup before its earnings and true to form the technicals were right, I got my last minute push up. Also true to contrarian form this allowed me to wait until the put options were flattened out so I could get on them cheaply. And now the deck is stacked in our favor because there is a high chance that this stock is going to report lackluster earnings that will drive its stock price down in the next few days which will inflate our put price so we can profit.

By the way, I see the QQQ as temporarily topped out, it most likely will backtrack for a few days then resume the climb.

More pics tommorrow, come on back.

Mark

Read More

Today's watch list and QQQ direction

Today we are going to watch DRI for a possible put as today its technical chart is showing a possibile last minute push up tomorrow before it announces. If it does do the last minute push up, I just may grab the 48 puts for sept.
Also, I am now seeing the QQQ is going to drop over the next several days so the picks that I am going to issue will be in line with that fact.

Furthermore, watch this site after 11am Chicago standard time as I will be making more midday picks.

Mark

Read More

If you invent the mousetrap

If you invent the mousetrap, the world will beat a path to your door. Whats my mousetrap? 30% a month. Not too many people can do that. When an investment fund manager makes his clients 15% a year every year for the last 5-7 years he is lauded as a financial genius and has people clamoring to put their money under his advisement.
While it is my plan to eventually have a fund of my own, my closer term ideas are to have this website be converted to a 20-30 dollar per month paid subscription and have 2 to 3 thousand subscribers. As the site grows, the subscriber base will grow.
How fast does 30% a month grow? While I advise that you separate your investments into 10-20 different piles lets assume you are putting all of your money back into your next investment. The numbers grow exponentially. Starting with a first month amount of $5,000, at the end of 12 months you will have over $120,000 and the year after that you will have millions.
Einstein himself once said that the power of compounding interest is one of the most powerful forces in the Universe.

Before I sign off, one more thing this early morning. Somewhere you have a friend that you know that invests in the stock market. Perhaps they are a buddy of yours that works in a cubicle somewhere, or a friend of yours that has his own office as he is upwardly mobile. Perhaps he or she is an engineer, in marketing, works in a law firm, in finance, or whatever. This site is designed for such a person as I give average hardworking everyday people the ability to make money never before seen by someone outside the upper tiers of the financial trading system. Let them know that the 1045 report is something they should check out.
More picks for tomorrow, and thanks for reading!

Mark

Read More

Why You Can't Afford To Make $12-$15 dollars per hour

I am going to be in a meeting this afternoon, but I would like to leave you a very interesting article from my other blog that I maintain:

http://parityhedgesystemcraps.blogspot.com/2014/07/why-you-cant-afford-to-make-12-15.html

This is a very in depth article about how you must make at least 25 dollars per hour to stay ahead of the blast wave that is life. It is expensive to live, and if you are making below 25 dollars per hour, you are sliding backwards and are eventually going to have money problems.

Life is all about drawing the appropriate amount of energy towards you. If you are not, I show you how to fix it. So grab a drink, settle back and get ready for a great read.

Also, if you think this is a good site, dont forget to recommend the 1045 report to a friend. www.the1045report.com .

More stock picks for you this evening for Tuesday, so come on back.

Have a good day,
Mark

Read More