MomentumOptionsTrading.com Midday Update for 4/8/2014
Bulls Holding Support, Alcoa (AA) on Deck
Former blue-chipper Alcoa (AA, $12.60, up $0.13) will announce their quarterly numbers after the close today to “unofficially” kickoff 1Q earnings season. The bellwether company is a global manufacturer of aluminum products so the conference call could offer some clues on how the economy is doing.
We mentioned last week Wall Street is looking for a nickel a share in earnings on revenue of $5.5 billion. The range is a little wide as some analysts believe numbers could come in as high as 8 cents a share or, perhaps, a breakeven quarter.
In January, Alcoa missed estimates by 2 pennies but revenue came in higher than expectations. This quarter could be much of the same.
While Alcoa’s report will be important, we are more interested in what JPMorgan Chase (JPM, $58.90, down $0.10) and Wells Fargo (WFC, $48.92, up $0.26) have to say when they report their quarterly numbers on Friday.
The market is trending higher as we head into the second half of trading despite the bears efforts to chip away at support. They have our attention and want us to come join them after dancing with our downside targets.
We haven’t given in, yet, and the test will get easier if the bears can advance the flag a little further. We haven’t given up on the bulls, either, as we feel like Elvis caught in a trap.
We have updated our current trades as we have raised the stops on a few of them to protect profits. We will continue to monitor the market and everyone should be aware of our downside go targets. They were “stretched” this morning but we have played with the bears long enough to know not to fall for their tricks. However, if there are lower lows into the close then the bears might be getting serious.
The Dow is up 36 points to 16,281 while the S&P 500 is advancing 6 points to 1,851. The Nasdaq is higher by 30 points to 4,109 and the Russell 2000 is popping 5 points to 1,141. The VIX is at 15.15, down 0.42.
Subscribers, check the Members Area for the updates and stay locked-and-loaded for the remainder of the session as we could have New Trades and/ or Profit Alerts if the action picks up.