This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Predetermined Results

Veteran traders see it day in day out, but newer traders may not be familiar with what the famous adage "buy the rumor, sell the news" actually looks like. Yesterday we had reports of a substantial drop in initial jobless claims, but did it truly warrant the strongest day year-to-date for the S&P? Today's decline would suggest that it did not.

When jobless claims came out yesterday many investors felt that this would point to an undeniable rise in payroll jobs. They continue to initiate long positions in hopes that Friday's report will continue to push us higher. However, something happened that they may have not taken into account. For one, the payroll consensus was increased from 180,000 to 200,000 leaving us to actually hit the target today as opposed to surpassing it. Another factor affecting the report is a slight miss in hourly earnings. Given that this follows a strong January, it's not quite as much of a red flag, but still a number worth noting. Crude futures have also aided in easing prices in stock indexes as we've finally been able to crack through our 2008 highs.

Crude Weekly
Source: TradeStation

Following through with our expectation of higher crude prices (I've included a weekly chart in crude that's worth noting), I want to take a look at another trade in the energy sector that fits our trading criteria and is currently riding in a solid uptrend. Joy Global ( (JOYG); $97.14 as of 11:00 a.m. EST) is in the service mining industry and stands to benefit from an increase in demand for energy products as we move into the summer months. We've also the Bollinger Bands and Keltner Channels almost trading within each other, showing that we could be getting ready for an expansion in volatility.

Joy Global (JOYG) Daily
Source: TradeStation
View Chart

I'll be taking today as an opportunity to initiate a call position in the stock and look for a test of our most recent highs. Here I'll be moving out into April options with the 90 calls and stops around $94.00.

Joy Global (JOYG) Options Chain

Source: TradeStation

View Chart



Trade: Buy to open JOYG April 90 calls for $9.40, with a stop at $94.00 and a target of $100.00.


At the time of publication, John Carter was long JOYG calls.

John is a Commodity Trading Advisor with Razor Trading. McGraw Hill commissioned him to write a book entitled Mastering the Trade, which was released in January 2006. Carter has also been featured on ABC Money. He and Hubert Senters founded and run the Trade the Markets web site.

OptionsProfits For actionable options trade ideas from a team of experts, visit TheStreet's OptionsProfits now.
Readers Also Like:




Readers Also Like:



Readers Also Like:

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters