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Earnings per share.

An option contract that grants the holder the right to buy or sell a specific number of shares of stock at a specified price during a specific period of time.

This occurs when a stock hits support in the form of an old high, a moving average, a trend line, or a combination of these, and moves up sharply. It is like dropping a ball onto a concrete sidewalk-the sidewalk is hard support and the ball bounces sharply. Not all support is strong enough for a bounce-we look for old tops (highs on the way up), breakout points (they act as resistance until the breakout-if the breakout is on good volume, it should act as support and give you a bounce). If money flow is good and the market is not tanking, we usually see a bounce off of this solid support.

The tender and receipt of the underlying commodity or the payment or receipt of cash in the settlement of an open futures contract.

A financial statement listing a company’s assets (what it owns) and liabilities (what it owes) as of a specific date, usually the last day of a company’s fiscal quarter. The difference between a company’s assets and liabilities is termed its net worth or shareholder’s equity. 

A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.

A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions.

The difference between a bond’s face value and its current market price. 

This occurs when a stock trades sideways in various signature patterns (e.g., cup with handle, saucer base, flat base) while it is under accumulation prior to its next move up. We look for these stocks as they can lead to explosive moves out of the bases.

The maximum price advance or decline permitted for a futures contract in one trading session compared to the previous day’s settlement price.