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Thursday, April 4th, 2013
12:55pm (EST)
The sentiment towards shares of Best Buy (BBY, $24.44, up $2.79) seems to change like the wind but the stock is getting a big lift today following news they will be showcasing Samsung’s products in their stores. The store-inside-a-store hasn’t worked for JC Penney (JCP, $14.51, up $0.08) as shares have hit a fresh 52-week low of $14.10 this morning but Wall Street likes this announcement.
We were a little puzzled yesterday when we saw one brokerage firm raise their price target for best Buy from $21 to $36 yesterday and maintained their Buy rating. Shares closed at $21.65 on Wednesday so the upgrade represented a 60% return from current levels. This was a really nice call but we weren’t sure how they were pricing in such a big move.
There does seem to be a turnaround in place with Best Buy’s new management team and margins are improving but the shorts are shocked by today’s 12% pop. We have been watching the April 23 calls (BBY130420C00023000, $1.80, up $1.50) today after they opened at 30 cents but we had no idea they would zoom 500% or we would have tossed some bait out.
The bigger news today could be Facebook’s (FB, $26.58, up $0.33) announcement and while we doubt shares will make a double-digit move they could do well if Wall Street’s likes the company’s new mobile partnership. The devil will be in the details but we are looking for further upside movement as we are long call options. Of course, there could be a sell the news event if analysts yawn at their plans but we like shares at these levels and believe they are undervalued.
If we could pipe-in and say one thing, Facebook should bite the bullet and buy Research In Motion, or Blackberry (BBRY, $15.09, up $0.06) as they are now called. This may or may not help tilt the scales in competing with Google (GOOG, $793.47, down $12.73) but they would have an in-house manufacturer of phones with a solid subscriber base.
The back-and-forth action continues as the market is working on its 10th-straight session of up one day, down the next. The bears are looking for a 2-session win streak but the bulls are fighting back as we await tomorrow’s Nonfarm Payroll report. It would only make sense that the market is mixed as we head into the second half of trading.
The Dow is up a 6-pack to 14,556 while the S&P 500 is higher by 2 points to 1,556. The Nasdaq is lower by 5 points to 3,213 while the Russell 2000 is up a half-point to 919. The bulls would like to clear 920 into the close.
We have more to talk about with our current trades so we have to roll but tomorrow promises to be exciting! Subscribers, check the Members Area for the updates.
Posted in Google, Hot Stocks, Market Analysis | Comments Off
Wednesday, January 2nd, 2013
12:30pm (EST)
When figuring out where the market or a stock will be or won’t be over a certain time frame, we like to use fundamental analysis and technical analysis for determining which direction they may go but it is also important to use sentiment, momentum, rumors, headlines, and a host of other factors. No “system” is perfect which is why we DON’T have one and rely on our 25 years of market experience to help us make our trades. We also like to use stock market history, the VIX, metal prices, currency prices, world markets, and hours and hours of daily research to predict where the market or a stock is headed over the next few weeks, months and for the year. With these things constantly changing, it is important to watch everything when it comes to investing in the market.
That being said, we wanted to check the “Santa Claus Rally” that didn’t officially start until AFTER Christmas and runs the last 5 days of the year and the first 2 trading sessions of the New Year. Every year, the talking heads and many of the Wall Street pros will predict a Santa rally BEFORE Christmas before they take the rest of the year off. We reminded you again in mid-December that Santa comes after Christmas when it comes to the market.
Believe it or not, the Santa rallies have averaged 1.5% over this time frame for the last 60 years when the market moves higher. If the market moves lower, then it can be a warning sign for an upcoming bear market. The Dow started at 13,138 on the day after Christmas and the S&P 500 was at 1,426. The Nasdaq was at 3,012 while the Russell stood at 844. We will check these numbers over the weekend to see how the indexes performed as the Santa rally ends tomorrow on the close.
Today is also the start of the first five days of January that is often a good tell on market direction for the month and year. We will talk about all of these forces this weekend with our typical chart work as the bulls push the top of the trading range.
It is always a little risky buying a breakout but our portfolio was light as we came into the year and the 2 trades we took this morning are on stocks we have followed for years. These plays are longer-term positions based on a rebound in one sector that has not participated in the year-long rally and on another stock we strongly feel could be gobbled up by Google (GOOG, $720.85, up $13.47).
We do have open trades for our Weekly Wrap, including our Bank of America (BAC, $12.00, up $0.39) recommendation that is now up over 20%.
We started loading up on BAC in December 2011 at $5.36 a share and we have made 20%, 26%, 6% and now we are up 20% on our covered calls. We have a price target of $15 for BAC at some point in 2013 but that may be conservative.
The resistance targets we gave you this morning are sticking like glue: Dow 13,350; S&P 1,450 and Nasdaq 3,100. We could see some fluff and a push to new 52-week highs as we enter the start of earnings season next week but it will be important for the bulls to show some follow though over the next few days.
As we head to press, the Dow is up 226 points to 13,330 while the S&P 500 is higher by 24 points to 1,450. The Nasdaq is zooming 66 points to 3,085 and has traded to a peak of 3,103.
Subscribers, check the Members Area for the updates and we will be back in the morning with a full report.
Special Notice: We have extended the deal on our 1-year membership for one more day as we realize many of you are getting back from the holidays. If you don’t have the code, look on the website from Monday’s update or email our support team. We have a video coming out this weekend for the trading course and the manuals will ship out in 2-3 weeks so hurry up before this offer ends!
Posted in Google, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Friday, October 19th, 2012
9:00am (EST)
The bulls were on track for their fourth-straight win on Thursday and were pushing green before Wall Street got rocked. Shares of Google (GOOG, $695.00, down $60.49) went into a tailspin just as we were sending our midday update after earnings were released before the close. The reaction was swift as they missed estimates. The bears pounced on the news to push session lows but the bulls recovered, somewhat, although the Tech sector still suffered.
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are doing well for 2012. We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and is 24-0. Together, we are 136-45 (75% win rate) for both newsletters and we doubt you will find a hotter options trading service.
Here are some winners so far this year: +576% on GMCR,+475% on AXP,+462% on ARNA,+292% on COF, +171% on FSLR, +131% and +114% on 2 MGM trades, +200% on SGMS, +107% on AFL, +100% on STX, +82% on TSM and +125%and a slew of others.
Posted in Earnings, Google, Hot Stocks | Comments Off
Monday, August 27th, 2012
12:25pm (EST)
To no surprise, the market has traded in a tight range with both the bulls and bears getting a little piece of the action.
Economic news has been light although there was a regional report worth mentioning. The Texas Manufacturing Survey came in at -1.6 for August which was a huge improvement from July’s reading of -13.2.
As far as story stocks, Tiffany & Company (TIF, $62.60, up $4.10) missed earnings by a penny and cut full-year guidance but shares are up. Tiffany reported a profit of $91.8 million, or $0.72 a share, versus $90 million, or $0.69 a share, in the year-earlier period. As far as its outlook, the company gave a 2012 profit range of $3.55-$3.70 a share versus prior estimates of $3.70-$3.80 a share. Despite the lowered guidance and slightly worse-than-expected results, the stock is up 7%.
Apple (AAPL, $677.17, up $13.95) is popping 2% higher and hit an all-time high of $682 share shortly after the open. We mentioned the news from Friday night the company won its patent litigation case against Samsung and it was a huge win along with the $1 billion in settlement charges. Google (GOOG, $668.88, down $9.75) shares are trading lower as worries arise on what impact this could have on its Android phones.
Google, along with others, may have to come up with a “work around” plan as it tweaks or deletes certain features in new devices that may threaten Apple’s existing patents.
Samsung, which trades in the Asian markets, lost $12 billion in market cap, as shares were punished overseas.
We’ve got a little action happening with our current trades which are showing some nice gains so we have to roll so we can update our subscribers.
As we head to press, the Dow is up a dozen points to 13,170 while the S&P 500 is higher by 4 points to 1,415. The Nasdaq is advancing 10 points to 3,079.
Subscribers, check the Members Area for the updates.
Tags: AAPL, Apple all time highs, GOOG, Samsung/ Apple lawsuit
Posted in Apple, Google, Market Analysis, Option Trades | Comments Off
Monday, August 20th, 2012
9:00am (EST)
“The charts are still showing mixed signals with the Dow and Russell 2000 pinned under their middle uptrend channels while the S&P 500 and the Nasdaq are showing some strength. The VIX appears to be headed lower but volatility is at historic levels that often signal a reversal.
Earnings are starting to wind down with nearly 450 of the 500 S&P companies having confessed. The numbers are showing nearly 70% of them have beat earnings but we are more interested in how many companies missed on revenue and lowered guidance.
The tight trading range is normal during the summer doldrums and the test at this next level of resistance has come on very low volume. There were no convictions on any of the pops higher throughout the week as you can also see in the charts. Wall Street is bracing for the Fed and Europe (and now China) to do something by the end of the month.
While this week is options expiration, which usually brings added volatility, it wouldn’t surprise us if the market stayed range bound near the top for another week or two and pushed new highs. Economic news this week has the potential to move the market 2%-3% which would get the indexes near their peaks for the year or back to near-term support which we have outlined.
Again, we can be bullish if we need to be but we are still expecting a trading range that could produce a test to the 2012 highs or a slight pullback to support which was prior resistance – until the Fed or Europe makes a move.” (from 8/12/2012 Weekly Wrap/ Monday Morning Outlook)…
The bulls continued their winning ways as the market moved higher for the sixth-straight week and cleared another layer of resistance. The major indexes are within spitting distance of reaching new highs while the bears wait patiently for the end of the month to arrive.
******************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis. Together, we are 112-36 for 2012 which is a 76% win rate.
Posted in Apple, Company Commentary, Google, Market Analysis, Market Commentary, Option Trades | Comments Off
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Wall Street Should Thank Santa, Not the Zombies
Wednesday, January 2nd, 2013
12:30pm (EST)
When figuring out where the market or a stock will be or won’t be over a certain time frame, we like to use fundamental analysis and technical analysis for determining which direction they may go but it is also important to use sentiment, momentum, rumors, headlines, and a host of other factors. No “system” is perfect which is why we DON’T have one and rely on our 25 years of market experience to help us make our trades. We also like to use stock market history, the VIX, metal prices, currency prices, world markets, and hours and hours of daily research to predict where the market or a stock is headed over the next few weeks, months and for the year. With these things constantly changing, it is important to watch everything when it comes to investing in the market.
That being said, we wanted to check the “Santa Claus Rally” that didn’t officially start until AFTER Christmas and runs the last 5 days of the year and the first 2 trading sessions of the New Year. Every year, the talking heads and many of the Wall Street pros will predict a Santa rally BEFORE Christmas before they take the rest of the year off. We reminded you again in mid-December that Santa comes after Christmas when it comes to the market.
Believe it or not, the Santa rallies have averaged 1.5% over this time frame for the last 60 years when the market moves higher. If the market moves lower, then it can be a warning sign for an upcoming bear market. The Dow started at 13,138 on the day after Christmas and the S&P 500 was at 1,426. The Nasdaq was at 3,012 while the Russell stood at 844. We will check these numbers over the weekend to see how the indexes performed as the Santa rally ends tomorrow on the close.
Today is also the start of the first five days of January that is often a good tell on market direction for the month and year. We will talk about all of these forces this weekend with our typical chart work as the bulls push the top of the trading range.
It is always a little risky buying a breakout but our portfolio was light as we came into the year and the 2 trades we took this morning are on stocks we have followed for years. These plays are longer-term positions based on a rebound in one sector that has not participated in the year-long rally and on another stock we strongly feel could be gobbled up by Google (GOOG, $720.85, up $13.47).
We do have open trades for our Weekly Wrap, including our Bank of America (BAC, $12.00, up $0.39) recommendation that is now up over 20%.
We started loading up on BAC in December 2011 at $5.36 a share and we have made 20%, 26%, 6% and now we are up 20% on our covered calls. We have a price target of $15 for BAC at some point in 2013 but that may be conservative.
The resistance targets we gave you this morning are sticking like glue: Dow 13,350; S&P 1,450 and Nasdaq 3,100. We could see some fluff and a push to new 52-week highs as we enter the start of earnings season next week but it will be important for the bulls to show some follow though over the next few days.
As we head to press, the Dow is up 226 points to 13,330 while the S&P 500 is higher by 24 points to 1,450. The Nasdaq is zooming 66 points to 3,085 and has traded to a peak of 3,103.
Subscribers, check the Members Area for the updates and we will be back in the morning with a full report.
Special Notice: We have extended the deal on our 1-year membership for one more day as we realize many of you are getting back from the holidays. If you don’t have the code, look on the website from Monday’s update or email our support team. We have a video coming out this weekend for the trading course and the manuals will ship out in 2-3 weeks so hurry up before this offer ends!
Posted in Google, Hot Stocks, Market Analysis, Market Commentary | Comments Off