Blog Post On: 5/29/2010

We recently added two Stock Option Research features to the MTR Investors Group web site.

These features were designed to help Option Sellers find the most profitable trades for option writing including Covered Calls and Naked Puts.

1. Option Lookup: This page gives an option writer the ablity to check the most profitable option trades on a stock. This is a good feature to use when you have a particular stock in mind, and for example, want to write a covered call.

2. Option Income Search: This powerful search tool gives an option seller the power to search for the most profitable options over a database of around 740 large cap stocks. The data is updated each night after the close of the markets. The search page allows investors filter searches by Industry Group, Call or Put options, ROI on options, Stock Price ranges, P/E, and Dividend Yield.

Blog Post On: 5/16/2010

The turmoil in Greece and Spain really weighed heavy on the markets and it appears that Decision Economics (DE) has also turned negative in the short term.

DE stated in the Friday 5/7 report "DE has turned tactically negative on U.S. and global equities as a correction continues due to short term sovereign debt issues."  DE maintains a... "long-term strategic overweight on U.S. equities...strong V shaped earnings growth projections."   So in other words the short term ride is going to be rough but longer term the outlook is much better. DE goes on to talk about the U.S. exports can be hurt by the sovereign debt issues as well. 

Stock Market Timing Model (MTR-TM): Market Down Signal on 5/6/2010

• MTR-I:  Week over week (wow) +4.68. This comes from a sharp move up. The MTR-TM forecasts a Market Up signal for Monday 5/17 if the MTR-TM increases by +4.16%. Caution is key at this point due to factors noted above as well as seasonal "sell in May" issues.
• RSI: 45.58 and turned down after hitting 50. Below 50 is negative and a turn down from 50 can be see as negative as well. 
• MACD:  -7.51, below zero is a negative for the markets.
  Volume: Friday was clearly a distribution day

Advance/Decline Lines just stopping over major support levels.

 

All the major indexes are close to major support levels. Touching these levels may bring about a short term bounce higher.

Blog Post On: 5/10/2010

WASHINGTON (AP) -- Fannie Mae has again asked taxpayers for more money -- this time $8.4 billion -- after reporting another steep loss for the first quarter. The taxpayer bill for rescuing Fannie and its sibling Freddie Mac has grown to $145 billion -- and the final tally could be much higher.

The rescue of Fannie and Freddie is turning out to be one of the most expensive aftereffects of the financial meltdown, and Fannie Mae's first-quarter financial report on Monday made clear that there is no end in sight.

"The losses are not going to stop" soon, said Anthony Sanders, a finance professor at George Mason University, who warns that the housing market is likely to turn sharply downward again later this year.

Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Fannie and Freddie, lifting an earlier cap of $400 billion. And with the housing market still on shaky ground, Obama administration officials say it is still too early to draft any proposals to reform the two companies or the broader housing finance system.

Read the full article here