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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 $12 billion in market cap, as shares were punished overseas.
We’ve got a little action happening with our current trades which are showing some nice gains so we have to roll so we can update our subscribers.
As we head to press, the Dow is up a dozen points to 13,170 while the S&P 500 is higher by 4 points to 1,415. The Nasdaq is advancing 10 points to 3,079.
Subscribers, check the Members Area for the updates.
Tags: AAPL, Apple all time highs, GOOG, Samsung/ Apple lawsuit
Posted in Apple, Google, Market Analysis, Option Trades | Comments Off
Friday, July 20th, 2012
9:00am (EST)
The bulls won their third-straight session on Thursday and made another run at upper resistance levels but ran out of gas midday way through the session. The surge during the first half of trading was enough to allow them to coast to victory as the bears never got it in second gear.
The Dow added 35 points, or 0.3%, to finish at 12,943. The blue-chips tested a high of 12,977 at lunchtime after dipping to a low of 12,889 shortly after the open. The bulls made a push at 13,000 and if cleared it could be smooth sailing up to 13,200. We mentioned yesterday if the bulls fail to clear this level by the weekend there could be a test back down to 12,600 over the near-term.
The S&P 500 popped 4 points, or 0.3%, to settle at 1,376. We said a close above 1,375 would get 1,400 into play and yesterday’s high was 1,380. The low was 1,371. The 52-week high is 1,422 which was hit on the first trading day of April.
The Nasdaq led the way higher after jumping 23 points, or 0.8%, to close at 2,965. Tech touched a top of 2,976 and is a little over 1% away from taking out the 3,000 level. Unlike the Dow and S&P, the Nasdaq held green all day and above 2,950 which was bullish.
The Russell 2000 fell 3 points to finish at 802. The small-caps traded to 808 and we said a close above 810 would be bullish but the negative close could be another clue the market is topping. The S&P Volatility Index ($VIX, 15.45, down 0.71) fell another 4% and has reached our mid-teen target. There is still a chance the VIX could push the low teens and that would mean the S&P 500 is at 52-week highs.
After the close, Google (GOOG, $593.06, up $12.30) and Microsoft (MSFT, $30.67, up $0.22) came in with mixed results but shares of both companies got nice little pops in extended trading.
Google beat estimates and had a huge beat on revenue by $70 million. Microsoft posted its first ever quarterly loss after taking charges for its online division and an expensive, money losing acquisition. However, Mr. Softie posted strong sales as revenue rose 4% and topped $18 billion for the quarter. Google was trading above $600 when after-hours trading closed while Microsoft was above $31. Both levels are holding before the bell.
You would think futures would have gotten a nice pop but they were weak all night. Shortly after 1am (EST), Dow futures were down 33 while the Nasdaq futures were flat as a pancake. They have gotten worse this morning as we head towards the opening bell and look like this: Dow (-66), S&P 500 (-9), Nasdaq (-8).
We have an important chart to show you this morning on a stock we have traded options on 4 times over the past few months. All of the recommendations have been put options and have made our subscribers 172%, 144%, 29% and 6%. Shares are right near resistance again so let’s go see what the chart looks like inside the Members Area.
Tags: economic news, GOOG, option trading newsletter, YHOO
Posted in Google, Market Analysis, Market Commentary, Yahoo / Microsoft | Comments Off
Tuesday, May 29th, 2012
12:25pm (EST)
Futures were trading higher Monday night as we prepared for Tuesday’s open and got progressively stronger before the bell. The rest of the week, including today will be extremely busy with lots of juicy tidbits to digest.
China got the ball rolling after word spread they could start their own Cash for Clunkers program to help spur automobile sales. This gave the overseas markets a lift which put Wall Street in a good mood.
Helping Tech today is word Apple (AAPL, $568.12, up $5.83) is in the early stages of producing a new television that would work with the internet and cloud computing. We were just talking about how Apple [and Google (GOOG, $592.37, up $0.84)] needed to get off the mat as its stock has been languishing and this was good news. We showed a chart for both stocks this morning as possible option plays down the road.
Facebook (FB, $29.76, down $2.15) has fallen below $30 and doesn’t seem like it wants to get up. The options listed today and we will have more on this story in the coming days. The WEEKLY options for Facebook will list Thursday so there will be a ton of ways to play this one.
The premiums are a little jacked liked we said they would be with implied volatility coming in above 50. The Facebook June 30 puts (FB120616P00030000, $1.75, up $1.75) opened at $1.20 and have traded down to $1. The quote looks a little funny because the options just listed but get ready for a possible new trade this week on Facebook after we see how shares trade over the next few days.
Economic news is light today and May’s Consumer Confidence Index was a letdown after falling to 64.9 versus a print of 68.7 for April. The bulls shook-off the bad news and maintained their momentum at first but as we head into the second half of trading, some of the bloom has come off the rose.
The Dow is up 72 points to 12,526 while the S&P 500 is higher by 7 points to 1,325. The Nasdaq is higher by 11 points to 2,848.
We have action to take on one of our current call option trades that is showing a solid double-digit gain in a little over a week. We want to protect profits in case today’s gains fade so let’s go check the tape.
Subscribers, please hit the Members Area for the latest updates.
Tags: AAPL, Facebook options, FB options, FB stock options, GOOG
Posted in Apple, Google, Hot Stocks, Market Analysis, Market Commentary | Comments Off
Tuesday, April 17th, 2012
9:00am (EST)
The market ended mixed on Monday as the Dow held its gains while the S&P and Nasdaq finished in the red but off their lows for the day. This doesn’t sound too bad on the surface but the major averages are forming some awful bearish charts so let’s go over the numbers and what we are seeing.
The Dow gained 72 points, or 0.56%, to finish at 12,921. The blue-chip traded to a high of 12,986 but the peak was a point below last Thursday’s high and 13,000 has been a brick wall. The low for the day was 12,850 which is just above short-term support but the continued failure at 13K is a sign of weakness until cleared.
The S&P 500 fell three-quarters of a point, or 0.05%, to end at 1,369. The index traded to a high of 1,379 at the open which was just above resistance at 1,375. The low for the day was 1,365 which keeps 1,350 in play. We talked about the importance of the bears getting a win on Monday, albeit small, it was still a negative close for the index. This was the first time the S&P closed down on back-to-back Friday/ Monday’s. Although the market was closed for Good Friday, we counted the negative close on the Thursday before. This was good evidence going forward.
The Nasdaq fell double-deuces, or 0.76%, to settle at 2,988. The pop back above 3,000 was short-lived as the index traded down to 2,975 about an hour into the session. Although the talking heads were saying Google and Apple can be blamed for much of the weakness, we also have to remember these 2 Tech giants led the bulls’ charge higher for 6 months. Tech is now at its mid-March lows and if 2,973 is taken out a test to 2,950-2,900 could come quickly.
The S&P Volatility Index (VIX, 19.55, flat) traded above 20 again, to 20.42, while the low was 18.60. The major indexes have made lower highs and lower lows for much of April while the VIX is making higher highs and higher lows. Both are bearish signals.
Earnings kick into second gear this week and although companies are beating Wall Street’s estimates for the most part, many firms are missing on their revenue results. There were few earnings warnings coming into the season and we should get a clearer picture this week which sectors are thriving and which ones could suffer on an economic slowdown.
The scales have been tipping in the bears favor but we still have to guard against snap-back rallies, dead cat bounces, and a possible trading range. The bears still have another layer or two of support they must crack but so far our put options trades have been doing extremely well.
We could have a busy morning as we are looking to take profits in a few trades that could hit triple-digit returns. We continue to feel this next few months are going to offer some exciting opportunities so stay locked-and-loaded on possible NEW TRADES as well.
Futures are showing a decent pop at the open as Dow futures are up 63 points to 12,913 while the S&P 500 futures are higher by 7 points to 1,370. The Nasdaq 100 futures are advancing 12 points to 2,675. Subscribers, check the Members Area for the updates.
Tags: earnings warnings, GOOG, S&P Volatility Index, VIX
Posted in Hot Stocks | Comments Off
Monday, April 16th, 2012
1:30pm (EST)
The market is mixed as we head into the second half of trading as the blue-chips are up while both the S&P 500 and Tech are trending lower. Futures were pointing towards a nice pop at the open but the Nasdaq has been weak for much of the session after a positive open. Apple (AAPL, $587.49, down $17.74) and Google (GOOG, $606.29, down $18.31) were leading the Tech sector lower, as both try to hold down the $600 level.
As far as economic news, Retail Sales rose 0.8% in the month of March. Excluding autos and gasoline, the core reading was up 0.7%, versus forecasts for an increase of 0.5%. The Empire Manufacturing Index came in at 6.56, which was well below expectations for a print of 18 while the Housing Market Index for April came in at 25, versus expectations for a reading of 29. And finally, Business inventories were up 0.6% in February, matching expectations.
Citigroup (C, $34.07, up $0.66) is up 2% after reporting better-than-expected earnings but missing on sales. The company reported a profit of $1.11 a share on revenue of $19.4 billion. Wall Street was expecting $1 a share on revenue of $19.8 billion.
As we head to press, the Dow is up 90 points to 12,939 while the S&P is up less than a point to 1,370. The Nasdaq is down 21 points to 2,990.
One of our current trades was stopped out today. Lululemon Athletica (LULU, $73.02, down $0.49) traded higher at the open and our Hard Stop was triggered. We made a nice 25% return in under 2 weeks and we may be back to play this name again, soon. Subscribers, check the Members Area for the updates.
Tags: AAPL, C earnings, GOOG
Posted in Apple, Economic News, Google | Comments Off
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Google (GOOG) Beats Estimates, Shares Crack $600
Friday, July 20th, 2012
9:00am (EST)
The bulls won their third-straight session on Thursday and made another run at upper resistance levels but ran out of gas midday way through the session. The surge during the first half of trading was enough to allow them to coast to victory as the bears never got it in second gear.
The Dow added 35 points, or 0.3%, to finish at 12,943. The blue-chips tested a high of 12,977 at lunchtime after dipping to a low of 12,889 shortly after the open. The bulls made a push at 13,000 and if cleared it could be smooth sailing up to 13,200. We mentioned yesterday if the bulls fail to clear this level by the weekend there could be a test back down to 12,600 over the near-term.
The S&P 500 popped 4 points, or 0.3%, to settle at 1,376. We said a close above 1,375 would get 1,400 into play and yesterday’s high was 1,380. The low was 1,371. The 52-week high is 1,422 which was hit on the first trading day of April.
The Nasdaq led the way higher after jumping 23 points, or 0.8%, to close at 2,965. Tech touched a top of 2,976 and is a little over 1% away from taking out the 3,000 level. Unlike the Dow and S&P, the Nasdaq held green all day and above 2,950 which was bullish.
The Russell 2000 fell 3 points to finish at 802. The small-caps traded to 808 and we said a close above 810 would be bullish but the negative close could be another clue the market is topping. The S&P Volatility Index ($VIX, 15.45, down 0.71) fell another 4% and has reached our mid-teen target. There is still a chance the VIX could push the low teens and that would mean the S&P 500 is at 52-week highs.
After the close, Google (GOOG, $593.06, up $12.30) and Microsoft (MSFT, $30.67, up $0.22) came in with mixed results but shares of both companies got nice little pops in extended trading.
Google beat estimates and had a huge beat on revenue by $70 million. Microsoft posted its first ever quarterly loss after taking charges for its online division and an expensive, money losing acquisition. However, Mr. Softie posted strong sales as revenue rose 4% and topped $18 billion for the quarter. Google was trading above $600 when after-hours trading closed while Microsoft was above $31. Both levels are holding before the bell.
You would think futures would have gotten a nice pop but they were weak all night. Shortly after 1am (EST), Dow futures were down 33 while the Nasdaq futures were flat as a pancake. They have gotten worse this morning as we head towards the opening bell and look like this: Dow (-66), S&P 500 (-9), Nasdaq (-8).
We have an important chart to show you this morning on a stock we have traded options on 4 times over the past few months. All of the recommendations have been put options and have made our subscribers 172%, 144%, 29% and 6%. Shares are right near resistance again so let’s go see what the chart looks like inside the Members Area.
Tags: economic news, GOOG, option trading newsletter, YHOO
Posted in Google, Market Analysis, Market Commentary, Yahoo / Microsoft | Comments Off