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Friday, January 20th, 2012
9:00am (EST)
The bulls rolled out the red carpet after the bell on Thursday as a number of companies were set to report earnings. Despite the high profile events, the market moved higher as Tech once again led the way.
The Dow gained 46 points, or 0.4%, to finish at 12,625. The blue-chips closed on their highs for the day which opens the door for a test up to 12,800 as the index ended above our near-term 12,600 target.
The S&P added a 6-pack, or 0.5%, to settle at 1,315. The index managed to stay in the green all day after testing the breakeven level shortly after the open. We said there could be fluff up to 1,325-1,350 on the close above 1,300 which would be nice for the bulls to hold going into the weekend.
The Nasdaq jumped 18 points, or 0.7%, and ended at 2,788. Tech made a run at our 2,800 target but fell short after kissing a high of 2,793.
Yesterday’s news is actually today’s headlines as we have a ton of stocks in play ahead of the open. Most noticeably, Google (GOOG, $639.57, up $6.66) shares are down a whopping 10% (like we predicted) after the company missed Wall Street’s estimates. It seems the gains on Thursday ($6.66) were a sign of bad things to come.
Google was down over $60 at one-point last night in extended trading and in pre-market action, shares are down $50 to $590.
Elsewhere in pre-market trading, Intel (INTC, $25.63, up $0.24) is up 2% after they beat estimates and offered in-line guidance for the current quarter. International Business Machines (IBM, $180.52, down $0.55) is trading higher to $185 despite missing analysts’ revenue targets but did up guidance going forward.
And finally, Microsoft (MSFT, $28.12, down $0.11) is pushing $29 after reporting a profit of $6.6 billion, or $0.78 a share, on revenue of $20.9 billion for the quarter. This was slightly below last year’s showing of $0.77 a share on sales of $19.95 billion for the quarter, but slightly ahead of the 76 cents the suit-and-ties had penciled in.
Shares of Microsoft are at $28.77, up $0.65, ahead of the bell. We currently have open trades on this name so look for possible Profit Alerts if we take action. We have a $35 price target on Microsoft by summertime but we want to take advantage of today’s possible pop to lock in profits on our February call options.
Futures are pointing towards a mixed open and look like this: Dow (-16), S&P (-3), Nasdaq (flat).
We also have some other current open trades that we may take action on this morning and we have raised the HARD STOPS for a few of them in case there is a pullback. With the weekend here, we may lock-in some triple-digit profits! Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: GOOG, IBM, INTC earnings, momentum options, MSFT
Posted in Earnings, Google, Market Commentary, Trade Update, Yahoo / Microsoft | Comments Off
Monday, November 28th, 2011
9:00 (EST)
The market continued its recent slide as the bears had their best bull feast in nearly 80 years as Wall Street fell 5% last week. The recent selling pressure became much more serious as all of the indexes fell below their 50-day moving averages (MA) with the bears stretching their winning streak to seven-straight sessions.
The headline news read like a Vegas betting parlor as a number of European countries face further risks of defaulting. Germany was the latest country which showed a chink in the armor after trying to raise $6 billion euro but was only able to raise a little over half of it. Spain also went to the well and was successful in its bond auction but the yields came at a hefty price. Italy faces a huge crisis in 2012 if they can’t raise more dough, and they are trying, but it’s costing them an arm-and-leg.
The news here at home continues to come in better-than-expected and this week will be big with a number of month-end reports due out. As far as the charts, they have been stretched which often happens when headline news trumps the technical picture. The bears have clearly had the advantage and at some point there will be a rebound but until Europe can figure out its mess, the market will be held hostage.
The Dow slipped 26 points, or 0.2%, to finish at 11,232 on Friday’s shortened session. We went into the week looking for 11,600 to hold but that level was taken out on Monday. Our next downside targets were 11,400 and then 11,200, which held, but there is risk down to 10,800 this week if current levels don’t hold. If the bulls can get past 11,400 (black line, purple circles) then they could make a run back towards 11,600 and then 12,000 but the news has got to be awfully good. For the week, the Dow dropped 564 points, or 4.8%, and is now down 346 points, or 3% YTD…
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Futures are pointing towards a strong start for today’s session and look like this: Dow (+255), S&P 500 (+34), Nasdaq 100 (+53). We recommended 4 new trades on Friday and after two weeks of being patient and building new positions, hopefully we get the surge we have been expecting. Subscribers, check the Members Area for the updates.
Tags: Dow, Momentum stocks, stock options trading advisors
Posted in Apple, BioTech, China, Commodities, Company Commentary, Covered Calls, Earnings, Economic News, Entertainment Stocks, European Union (EU), Financial Stocks, Futures, Gold, Google, Hot Stocks, IPOs, Market Analysis, Market Commentary, Mergers and Acquisitions, Money Management, Oil, Option Trades, Rick's Account, Sectors, Stock Earnings, strangle option trades, Trade Update, Trading Psychology, Trading Tips, Uncategorized, VIX, Watch Lists, Yahoo / Microsoft | Comments Off
Friday, October 21st, 2011
9:00am (EST)
The market ended mixed on Thursday despite a day of good economic news and better-than expected earnings. We mentioned in our Weekly Wrap on Sunday that we would be entering the heart of 3Q earnings season this week and so far nearly 75% of the companies reporting have matched or beat expectations. Although the results haven’t provided the bulls with the momentum they were hoping for, there is some strength in the numbers which have helped the bulls hold support.
The major averages are showing a slight loss for the week as the bears try to snap the current 2-week winning streak the bulls’ are working on. Today is expiration day for the October options and it is usually a down session for the bulls. However, we continue to believe there will be a break higher out of the current trading range if Wall Street could just stop worrying about Europe. Then again, this is the 6th time since August the market has tried to break on through to the other side. (Yes, we wanted to remind you of a Doors song today – which is currently playing on the office jukebox as we type. How ironic, huh?).
The Dow added 37 points, or 0.3%, to finish at 11,541. The index traded to a low of 11,391 while the high was 11,581. Short-term support is at 11,350 while resistance remains 11,600.
The S&P gained 6 points, or 0.5%, and closed at 1,215. The index slipped below the 1,200 level after kissing a low of 1,197 but easily held the second wave of support which comes in at 1,175. We would like to see a close above 1,225 today – but as long as 1,200 sticks like glue, we will be happy going into the weekend.
The Nasdaq gave back 5 points, or 0.2%, to settle at 2,598. Tech touched a low of 2,557 which was just above the second wave of support at 2,550 and finished just below the 2,600 level. We aren’t too worried because it appears to us the Nasdaq is on the verge of testing 2,700 if it can clear resistance at 2,650.
After the close last night, Microsoft (MSFT, $27.04, down $0.09) matched earnings and beat sales expectations while SanDisk (SNDK, $45.50, up $0.32) absolutely smashed estimates.
Microsoft reported a profit of $5.74 billion, or $0.68 a share, versus $5.74 billion, or $0.62 a share, from the year earlier period. Revenue checked-in at $17.4 billion versus $17.2 billion a year ago while Wall Street had $0.68 as share on sales of $17.2 billion penciled-in. We knew Mister Softee would report a good quarter and we went long some call options that booked our subscribers 56% earlier this month. We have thought of making the stock a member of our Covered Call portfolio but we may be getting another great entry point to play this name again.
Elsewhere, SanDisk announced earnings of $1.20 a share versus a forecast of $1.06, on average, by most analysts. We said inside our Members Area yesterday that the company could surprise the Street and report a number north of $1.15. Shares are at $48 in pre-market action, up $2+.
Today is light as far as economic news and we wouldn’t be surprised to see a “flat” trading day as neither the bulls, or bears, will want to bet the ranch ahead of this weekend’s events concerning Europe. We were looking for another positive week but the bulls have some work to do. The Dow needs a triple-digit pop just to break even for the week so a 1% move is a must.
Subscribers, check the Members Area for the updates and the Watch List for some new ideas. There is one trade we like today but we are undecided on if we will get in this morning or wait until next week. If we do, look for a Trade Alert by 11am (sharp).
As we head towards the opening bell, futures look like this: Dow +110; S&P 500 +13; Nasdaq 100 futures are up 22 points.
Tags: Dow Futures, Microsoft (MSFT), S&P futures, Sandisk, SNDK earnings report
Posted in Covered Calls, Earnings, Yahoo / Microsoft | Comments Off
Wednesday, October 19th, 2011
9:00am (EST)
“We could have a short-covering rally into the close so buckle-up”.
Those were our famous last words from Tuesday’s tidbits…
We said yesterday we had high expectations for the week and we were disappointed with the start but the bulls got back on track following Monday’s spanking. The open on Tuesday didn’t look promising as the bears easily penetrated our first wave of downside targets. However, as we were watching support, the charts, and the VIX, we had a good feeling the bulls would hold down the fort so we added a couple of new positions.
Although we wouldn’t considering Tuesday’s pop a “breakout”, the price action is still higher despite those who want to short this market. We haven’t heard any “uncle’s”, yet, but the bears were close to saying it as their knuckles turned redder into the close.
The Dow surged 180 points, or 1.6%, to close at 11,577. After touching a low of 11,296, the blue-chips turned on a dime and traded to a high of 11,652 into the close. If the index can close above 11,600, it should clear the way for a quick run to 11,800 while 11,350 remains short-term support.
The S&P 500 added 25 points, or 2%, to settle at 1,225. The index briefly dipped below the 1,200 level and kissed 1,191 before rebounding to a high of 1,233. The S&P closed right on our first upside target and the move above 1,225 intraday suggests the bulls are still eyeing 1,250-1,275 over the near-term. Support remains at 1,200-1,190 with 1,175 providing backup.
The Nasdaq jumped 43 points, or 1.6%, to end at 2,657. Tech easily held the 2,600 level after touching a low of 2,586 while the high was 2,667. Resistance is at 2,675-2,700 while short-term support remains 2,600-2,575.
The S&P Volatility Index (VIX, 31.56. down 1.83) traded to a high of 34.71 and came into the week at 28. We mentioned in our Weekly Wrap the bulls would be trying to keep the VIX below 30 as we see the low 20’s coming into play on a continued rally. However, volatility hasn’t gone away and what normally takes weeks for something to play out is now only taking days.
Of course, all of this is yesterday news and the bulls have a fresh set of challenges ahead of themselves today. After the closing bell last night, Apple (AAPL, $422.24, up $2.25) shocked Wall Street with a rare earnings miss. However, Intel (INTC, $23.40, up $0.12) announced another outstanding quarter while Yahoo (YHOO, $15.47, down $0.23) and Juniper Networks (JNPR, $21.41, up $1.01) also beat expectations.
We will have more on these stories in our afternoon update.
Futures are mixed and pointing towards a slightly lower open as Apple is heavily weighted in some of the major indexes. Dow futures are up 2 points to 11,528 while S&P 500 futures are lower by 2 points to 1,221. Nasdaq futures are off 14 points to 2,350.
Tags: Dow Futures, option alerts, option trading, option trading services, options momentum trading, options on stock, options trading, options trading service, stock option trade, trade in options, VIX, weekly options trading
Posted in Earnings, VIX, Yahoo / Microsoft | Comments Off
Friday, January 28th, 2011
9:10am (EST)
The bulls struggled to the finish line on Thursday but led the bears for much of the race as all three major indexes finished in the green. We also got our second confirmation that the current rally could have more legs.
The Dow gained 4 points to close at 11,989 but made its second straight trip above 12,000, hitting 12,019 intra-day. We mentioned yesterday the index has a shot at 12,300-12,350 over the near-term and we would like to see a close above 12K today.
The S&P 500 finally kissed 1,300, twice, once in the morning and once in the afternoon before finishing just below resistance at 1,299.54 – up 3 points. We are looking for a pop to 1,325 and maybe 1,350 on a breakout.
The Nasdaq was the strong horse as it added 15 points, or 0.6%, to settle at 2,755. The index is still 9% away from our 3,000 target and we have said it may be hard to reach this level over the near-term. We may only get to 2,850.
We probably would have been at Nasdaq 3,000 if some of the high-beta stocks would have held up but the ones missing earnings have been clipped for 10%-20% haircuts after announcing. We will talk more about the market in our afternoon update.
Turning to earnings, Amazon.com (AMZN, $184.45, up $9.06) was up 5% yesterday but fell nearly 10% in after-hours trading last night. The company said it earned $416 million, or $0.91 a share, on revenue of $12.95 billion but Wall Street was looking for a profit of $0.88 a share on revenue of $13 billion.
Meanwhile, Microsoft (MSFT, $28.87, up $0.09) had an incredible quarter as they beat expectations but concerns over their Windows revenues caused shares to slip last night in extended trading. The company reported a profit of $6.63 billion, or $0.77 a share, on sales of $19.95 billion. Wall Street was looking for numbers of $0.68 a share on revenue of $19.15 billion.
Microsoft could get this quarter’s Rodney Dangerfield award…
Futures are pointing towards a slightly higher open this morning: Dow (+5), S&P 500 (+2), Nasdaq 100 (+6). Our current trades made some nice gains on Thursday and we may lock in some profits ahead of the weekend. Subscribers, check the Members Area for the updates. We may be a little early with our update today and look for trade alerts this morning if we decide to close a trade or take half positions.
Tags: 000, 300, best option trader, call options, Dow 12, momentum options, Momentum stocks, option signals, options newsletter, put options, S&P 500 1, winning option trades
Posted in Earnings, Market Analysis, Yahoo / Microsoft | Comments Off
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Microsoft (MSFT) Keeps Momentum, Shares Up
Friday, January 20th, 2012
9:00am (EST)
The bulls rolled out the red carpet after the bell on Thursday as a number of companies were set to report earnings. Despite the high profile events, the market moved higher as Tech once again led the way.
The Dow gained 46 points, or 0.4%, to finish at 12,625. The blue-chips closed on their highs for the day which opens the door for a test up to 12,800 as the index ended above our near-term 12,600 target.
The S&P added a 6-pack, or 0.5%, to settle at 1,315. The index managed to stay in the green all day after testing the breakeven level shortly after the open. We said there could be fluff up to 1,325-1,350 on the close above 1,300 which would be nice for the bulls to hold going into the weekend.
The Nasdaq jumped 18 points, or 0.7%, and ended at 2,788. Tech made a run at our 2,800 target but fell short after kissing a high of 2,793.
Yesterday’s news is actually today’s headlines as we have a ton of stocks in play ahead of the open. Most noticeably, Google (GOOG, $639.57, up $6.66) shares are down a whopping 10% (like we predicted) after the company missed Wall Street’s estimates. It seems the gains on Thursday ($6.66) were a sign of bad things to come.
Google was down over $60 at one-point last night in extended trading and in pre-market action, shares are down $50 to $590.
Elsewhere in pre-market trading, Intel (INTC, $25.63, up $0.24) is up 2% after they beat estimates and offered in-line guidance for the current quarter. International Business Machines (IBM, $180.52, down $0.55) is trading higher to $185 despite missing analysts’ revenue targets but did up guidance going forward.
And finally, Microsoft (MSFT, $28.12, down $0.11) is pushing $29 after reporting a profit of $6.6 billion, or $0.78 a share, on revenue of $20.9 billion for the quarter. This was slightly below last year’s showing of $0.77 a share on sales of $19.95 billion for the quarter, but slightly ahead of the 76 cents the suit-and-ties had penciled in.
Shares of Microsoft are at $28.77, up $0.65, ahead of the bell. We currently have open trades on this name so look for possible Profit Alerts if we take action. We have a $35 price target on Microsoft by summertime but we want to take advantage of today’s possible pop to lock in profits on our February call options.
Futures are pointing towards a mixed open and look like this: Dow (-16), S&P (-3), Nasdaq (flat).
We also have some other current open trades that we may take action on this morning and we have raised the HARD STOPS for a few of them in case there is a pullback. With the weekend here, we may lock-in some triple-digit profits! Subscribers, check the Members Area for the updates and stay locked-and-loaded.
Tags: GOOG, IBM, INTC earnings, momentum options, MSFT
Posted in Earnings, Google, Market Commentary, Trade Update, Yahoo / Microsoft | Comments Off