MomentumOptionsTrading.com Midday Update for 7/14/2014
Bulls Looking Good/ New Trade !!!
Futures were showing a positive open throughout the night and into this morning’s open which gave Wall Street some hope a rebound rally might continue.
The bulls are trying to snap a 3-session Monday losing streak and are doing a good job as the market makes the turn. The bulls have cleared resistance and new highs are back in play.
Citigroup (C, $48.59, up $1.59) reported their numbers ahead of this morning’s open that has helped the bullish sentiment. The company beat Wall Street’s expectations and I talked about the Financial stocks needing to show some muscle this week.
There are a slew of heavy-hitters reporting this week and here are the earnings highlights that will be in focus:
On Tuesday, Charles Schwab (SCHW), JPMorgan Chase (JPM) and Goldman Sachs (GS) will represent the Financials ahead of the open while J.B. Hunt Transport Services (JBHT) will give us a peak into how the transportation industry is holding up. Johnson & Johnson (JNJ) is a Dow bellwether blue-chip and will also join the group. CSX (CSX), Intel (INTC) and Yahoo (YHOO) will be talked about during Wall Street’s happy hour after the close.
For Wednesday, Abbott Laboratories (ABT), Bank of America (BAC), BlackRock (BLK), PNC Financial Services Group (PNC), St. Jude Medical’(STJ), Textron (TXT) and U.S. Bancorp will update the suit-and-ties before the bell. eBay (EBAY), SanDisk (SNDK), and Yum Brands (YUM) will be the top 3 stocks to watch during extended trading.
Thursday is a monster day as AutoNation (AN), Baker Hughes (BHI), Cypress Semiconductor (CY), Fairchild Semiconductor (FCS), Mattel (MAT), Morgan Stanley (MS), Philip Morris International (PM), Sherwin-Williams (SHW) Travelzoo (TZOO) and UnitedHealth Group (UNH) made my Top Ten for the morning coffee break. Advanced Micro Devices (AMD), athenahealth (ATHN), Capital One Financial (COF), Google (GOOG), International Business Machines (IBM), Schlumberger (SLB), Seagate Technology (STX) and Skyworks Solutions (SWKS) make a great eight to watch after the closing bell.
Wrapping up the week, Bank of New York Mellon (BK), General Electric (GE), Honeywell International (HON), Johnson Controls (JCI), VFCorp (VFC) and Volvo (VOLVY) will be the water-cooler talk ahead of Friday’s open.
All of these stocks will play a major role in shaping this week’s action and each day should be an exciting session.
Heading into the second half of trading, the Dow is gaining 135 points to 17,079 while the S&P 500 is advancing 11 points to 1,978. The. Nasdaq is up 31 points to 4,446 and the Russell 2000 is higher by 8 points to 1,168.
While it is tempting to trade earnings, there is another trade I am focused on for today.
Shares are on the verge of a major breakout and I talked about the possibility of adding a LEAP option trade to the portfolio. The current trades are also showing nice pops so let’s go check the tape.
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