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Friday, October 28th, 2011
9:05am (EST)
Wall Street was giddy on Thursday after hearing Europe’s long-awaited plan to fix their debt crisis is finally gaining traction. We covered the details of the 3-step plan yesterday and economic news here at home was decent with 3Q GDP (Gross Domestic Product) coming in better-than-expected. Jobless claims were a smudge over 400,000 again but were mostly in-line with expectations. Throw in some short-covering and it was off to the races for the bulls.
The Dow advanced 340 points, or 2.9% to settle at 12,208. We mentioned a run to 12,200 was possible if the bulls broke 12K and we can’t call it much better than that. The index traded to a high of 12,284 before giving back a little of the fluff, but more importantly, the blue-chips closed above their 200-day Moving Average (MA) for the first time since the beginning of August. We started our homework a little early because the Dow hit our top-end target a day sooner than expected but the signs are pointing towards a test up to 12,500-12,600 if the bulls can keep the momentum going.
The S&P 500 soared 43 points, or 3.4%, to finish at 1,284. Coming into the week, we knew there was a good chance of 1,250 falling and we said a break above this level could lead to run up to 1,275-1,300. The index hit a high of 1,292 and also conquered its 200-day MA.
As for the Nasdaq, it zoomed 88 points, or 3.3%, to end at 2,738. Tech hit an intraday peak of 2,753 and we said to look for a pop to 2,700-2,750 this week.
We are going to be a little short with our commentary because we have a Special Notice inside our Members Area along with 2 more NEW TRADES!!! We closed out 3 winning trades this week and locked-in half profits on 2 others.
We normally don’t like buying options on Friday’s but one of our latest recommendations is a Drug company on the verge of doing BIG things if they gain approval of one of their drugs. The other trade we are recommending options on is a stock that could gain 50% by year-end if it makes it back to its 52-week high by Christmas.
Subscribers, pay close attention to the LIMIT PRICES we have set for each trade. If we can’t get in at the open, we will wait and see what happens. If we do get filled, we will send out a Trade Update shortly after the bell.
Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Market Analysis, Market Commentary | Comments Off
Tuesday, October 18th, 2011
1:45pm (EST)
The market appeared to be in trouble after Wall Street heard IBM’s revenue miss last night but the bulls held the first wave of support and have actually turned things around as we head into the second half of trading. IBM did say some good things as well as some other companies as earnings appear to be outweighing pessimism about the Europe’s debt crisis today.
International Business Machines (IBM, $176.55, down $10.04) reported a profit of $3.84 billion, or $3.19 a share, versus $3.59 billion, or $2.82 a share, in the year-ago period. Excluding certain write-offs, the company actually earned $3.28 a share. The suit-and-ties were expecting $3.22 a share.
Revenue came in at $26.16 billion, slightly less than the $26.26 billion that analysts had penciled-in. Despite the sales miss, the company still raised guidance for the full-year which means they are expecting a better quarter when they report again in January 2012.
Even better, IBM said it would earn at least $13.35 a share for the year, topping the previous forecast for at least $13.25 a share. It was the company’s 10th straight quarter in which it has raised its full-year profit forecast. IBM announced an incredible quarter and we would be buyers at $175. In a year or two, it is possible IBM could be a $300 stock as the company expects to earn $20 a share by 2015.
Shares hit a 52-week high of $190 last Friday and despite another robust quarter, investors are clearly selling the news. The 5% dip has accounted for 75 points against the Dow but the blue-chips have rebounded from a triple-digit loss to nearly a triple-digit gain. And if it weren’t for IBM, the Dow would be right back at the top of its trading range.
The index is currently up 70 points to 11,467 while the S&P 500 is higher by 11 points to 1,212. The Nasdaq is showing a 13 point pop and is at 2,628.
The bulls also got a bonus package when the Producer Price Index (PPI) report showed an increase of 0.8% for September versus expectations for a gain of 0.2%. Yipee!
Apple (AAPL, $419.68, down $0.31), Intel (INTC, $23.30, up $0.02), Juniper Networks (JNPR, $21.05, up $0.65) and Yahoo (YHOO, $15.48, down $0.23) will announce earnings after the bell. If these 4 horsemen can come in with better-than-expected numbers then Tech could rebound and break out of its trading range.
We took advantage of the dip to add 2 new trades this morning so let’s go check them out! Subscribers, log into the Members Area for the updates. We could have a short-covering rally into the close so buckle-up.
Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade. Dow futures, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Apple, Market Analysis, Market Commentary | Comments Off
Monday, October 17th, 2011
1:00pm (EST)
Futures were pointing towards a strong open when we hit the rack last night as it appeared the market would rally after getting word that European finance leaders were working towards a solution to the debt crisis and plan to have something on the table by the end of the week. However, Germany came out this morning and calmed the bulls’ enthusiasm by saying this weekend’s European Union (EU) meeting will not be a miracle cure and that it will not fix all of the eurozone’s financial woes.
Here at home, economic news was better-than-expected but not all that great. The Empire State Manufacturing Index for October came in at -8.5, up from -8.8 in September, but still came in short of expectations for a print of -4.
In M&A news, a major merger between Kinder Morgan (KMI, $28.65, up $1.76) and El Paso (EP, $24.25, up $4.66) has also failed to lift the market. We said a few weeks ago with distressed stock prices we could see some action as Kinder will pay $38 billion in cash and stock, or nearly $27 a share, to acquire El Paso.
Turning to earnings, Halliburton (HAL, $35.02, down $2.41) is down nearly 7% despite reporting a blowout revenue quarter.
The company reported profits rose 25% to $683 million, or $0.74 a share, on record quarterly revenue of $6.54 billion. The results included a write-off of $0.18 a share for discontinued operations or they would have posted 92 cents share. Wall Street was looking for $0.92 a share on sales of $6.39 billion.
After the bell, International Business Machines (IBM, $187.35, down $3.18) will report their earnings along with VMWare (VMW, $89.50, down $3.58). We were able to close our 14th winning trade this morning and we have profits to take on 3 more trades making it 17-in-a-row!
As we head to press, the Dow is down 187 points to 11,457 while the S&P is lower by 18 points to 1,206. The Nasdaq is off by 47 points to 2,620. Subscribers, check the Members Area for the updates.
Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Earnings, European Union (EU), Market Analysis, Market Commentary | Comments Off
Monday, October 17th, 2011
9:00am (EST)
The bulls came into the week looking to keep their momentum following a test to new 2011 lows the prior week. Although they won the previous week, the bulls were still facing the uncertainty of Europe’s debt crisis and the start of 3Q earnings season which got off to a shaky debut with Alcoa’s (AA, $10.26, up $0.16) numbers.
Both fronts improved as Monday ended with a 3% pop as the bulls got good news over the weekend. Wall Street was impressed with the determination to come up with a plan to recapitalize the European banks and futures were pointing towards a strong start that morning. The plan-for-a-plan to fix Greece powered the indexes higher and should be in place ahead of the G-20 summit at the start of November.
Following Monday’s surge, we expected some pullback on Tuesday but the market held up well as both the S&P and Nasdaq finished slightly higher. The Dow fell 17 points but had broken through resistance at 11,350 on Monday so it was good to see this level hold.
The bears went into Wednesday’s session trying to hold down resistance on the Nasdaq and S&P but were unable to keep the bulls at bay. The major indexes jumped 1%, on average, as the S&P cleared 1,200 while the Nasdaq zoomed past 2,600. The Dow traded to a high of 11,625 as all three indexes traded past our near-term price levels we outlined last week.
Thursday was a flat session but the bulls got good news after the bell when Google (GOOG, $591.68, up $32.69) announced earnings. The company easily crushed Wall Street’s expectations as shares soared to nearly $600 in after-hours trading. Futures were strong before the opening bell on Friday and from there it was a stampede.
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If you are not a subscriber but would like to read more and check our chart work for the Dow, S&P 500 and the Nasdaq please click here. We are expecting another busy and possible volatile week and we could release NEW Trade Alerts as soon as this morning as we look to stay hot. We are the verge of closing our 14th-straight winning trade. Sign-up now and receive access instantly!
Futures are pointing towards a nice pop at the open so we may close HALF of our positions to lock in triple-digits profits for some of our current trade. Subscribers check the Members Area for the sizzling updates and stay on your toes for possible Trade Alerts and New Trades shortly after the opening bell.
Dow futures are down 48 points to 11,518 while the S&P 500 futures are off 2 points to 1,217. The Nasdaq 100 futures are declining 17 points to 2,350.
Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Hot Stocks, Market Analysis, Market Commentary | Comments Off
Wednesday, October 12th, 2011
2:25pm (EST)
The talking heads are saying we are off to a disappointing start to the earnings season but obviously they are reporting on the wrong companies.
We have mentioned Wall Street and the media makes too much out of Alcoa’s (AA, $10.19, down $0.11) earnings which “officially kicks off earnings season every quarter. The company reported a profit of $172 million, or $0.15 a share, versus $61 million, or $0.06, a share in the year-ago quarter. Revenue came in at $6.4 billion.
Wall Street was looking for a profit of $0.22 a share on $6.2 billion in revenues.
Shares of Alcoa were down 5% for much of the morning, falling to a low of $9.73, but have rebounded to trade back above double-digits.
Elsewhere, Pepsico (PEP, $63.25, up $2.30) is surging 4% after they beat estimates by a penny. The company reported a profit of $2 billion, or $1.25 a share, versus $1.92 billion, or $1.19 a share, in the year ago period. Excluding charges related to an acquisition, Pepsi actually earned $1.31 a share. Revenue came in at $17.58 billion
Analysts were looking for $1.30 a share on revenue of $17.11 billion.
There were some worries that Pepsi would miss estimates (Goldman) but we did the research over the weekend and reported our finding in our Weekly Wrap. We were bullish on the company’s upcoming quarter and we told our subscribers to stay long on our call options we recommended last week. The trade is currently up 70% on Pepsi’s pop.
We also recommended a trade in Infosys Technologies (INFY, $56.73, up $4.07) yesterday that is up over 100% in just 24 hours. The company not only beat Wall Street’s estimates but they raised guidance. Winner, winner chicken dinner.
As we head to press, the market is right on our next set of upside targets and we could be on the verge of a breakout. Of course, we are at the top of the trading range so we could also fall back. However, we think there are a lot of people who are going to get caught shorting this market and there could be more room to run for the bulls.
As we head to press, the Dow is up 180 points to 11,596 while the S&P 500 is higher by a double-deuce (22 points) to 1,217. The Nasdaq is zooming 42 points and is at 2,625 just like we have been planning for. Subscribers, check the Members Area for the hot updates!
Tags: bear market, bears, blue-chip stocks, bulls, Dow, Dow quotes, gold quotes, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, VIX
Posted in Earnings, Market Commentary | Comments Off
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Bears Cover Shorts, Market Surges 3%
Friday, October 28th, 2011
9:05am (EST)
Wall Street was giddy on Thursday after hearing Europe’s long-awaited plan to fix their debt crisis is finally gaining traction. We covered the details of the 3-step plan yesterday and economic news here at home was decent with 3Q GDP (Gross Domestic Product) coming in better-than-expected. Jobless claims were a smudge over 400,000 again but were mostly in-line with expectations. Throw in some short-covering and it was off to the races for the bulls.
The Dow advanced 340 points, or 2.9% to settle at 12,208. We mentioned a run to 12,200 was possible if the bulls broke 12K and we can’t call it much better than that. The index traded to a high of 12,284 before giving back a little of the fluff, but more importantly, the blue-chips closed above their 200-day Moving Average (MA) for the first time since the beginning of August. We started our homework a little early because the Dow hit our top-end target a day sooner than expected but the signs are pointing towards a test up to 12,500-12,600 if the bulls can keep the momentum going.
The S&P 500 soared 43 points, or 3.4%, to finish at 1,284. Coming into the week, we knew there was a good chance of 1,250 falling and we said a break above this level could lead to run up to 1,275-1,300. The index hit a high of 1,292 and also conquered its 200-day MA.
As for the Nasdaq, it zoomed 88 points, or 3.3%, to end at 2,738. Tech hit an intraday peak of 2,753 and we said to look for a pop to 2,700-2,750 this week.
We are going to be a little short with our commentary because we have a Special Notice inside our Members Area along with 2 more NEW TRADES!!! We closed out 3 winning trades this week and locked-in half profits on 2 others.
We normally don’t like buying options on Friday’s but one of our latest recommendations is a Drug company on the verge of doing BIG things if they gain approval of one of their drugs. The other trade we are recommending options on is a stock that could gain 50% by year-end if it makes it back to its 52-week high by Christmas.
Subscribers, pay close attention to the LIMIT PRICES we have set for each trade. If we can’t get in at the open, we will wait and see what happens. If we do get filled, we will send out a Trade Update shortly after the bell.
Tags: bear market, bears, blue-chip stocks, bulls, chicken option trade, chicken trade, Dow, Dow quotes, gold quotes, Google call options, Google+earnings, momentum, momentum options, Nasdaq, option mentoring, option trading course, S&P 500, straddle option trade, VIX
Posted in Market Analysis, Market Commentary | Comments Off