Good afternoon. The market has turned from a positive gain this morning to about a 0.9% loss but it looks like the major indices are bouncing. The last twenty minutes is seeing some buying interest. The Dow Jones Industrial Average (DJIA) is off 61 points. The NASDAQ Composite is only down 8.5 points. The S&P 500 is down 6.4 points. Stocks are improving quickly as I type.
Here's a quick update on what's moving in our OptionInvestor.com directional plays:
Amazon.com (AMZN) - Target achieved! AMZN soared to $45.45 this morning. Our first target to take profits was at $44.50. The stock is currently at $43.75 or +6.1%. Readers are encouraged to take some money off the table here as the stock begins bouncing higher this afternoon. We do have a secondary, more aggressive target at $48.50.
Apple Inc. (AAPL) - Hit some profit taking this morning with a gap down to $89.40, which provided readers a better entry point to buy calls. The stock almost hit our stop loss at $88.45 but traders bought the dip around $88.80. The stock is now up to $93.27 and nearing its high for the session around $94.50. If you did open positions in the $89-90 zone this morning I would encourage readers to take some money off the table in the $94-95 zone. Our official target remains the $99.00 mark.
AXSYS Tech (AXYS) - This stock continues to show strength. The stock just exploded higher this morning and broke through significant resistance at the $70.00 level. Shares hit $73.20 at its highs and are currently up 5.2% around $71.00. Our short-term target is $74.85 but more aggressive traders may want to aim for the $80 region. The inverse head-and-shoulders pattern is forecasting a $90 target, which corresponds with the $89 point and figure chart price target.
FYI: The rebound continues. The DJIA is now at -29 points, NASDAQ -4.6 points, S&P 500 -2.2 poitns.
- James Brown