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Wednesday, January 18th, 2012
9:00am (EST)
The bulls got off to a good start on Tuesday following Monday’s holiday as overnight and morning futures were up significantly before the European markets opened for trading. The major averages surged 1% out of the gate but finished the day giving back half the highs and then some after pushing another layer of resistance. Still, the surge higher put the momentum back on the bulls side following Friday’s setback but the close yesterday wasn’t fancy and didn’t excite us.
The Dow added 60 points, or 0.5%, to finish at 12,482. The blue-chips reached a high of 12,573 as they managed to stay in positive territory throughout the session. The move near resistance at 12,600 clears the way for a run up to 12,800-12,875 with a shot at 13,000 but that might be asking a bit much before we get a pullback. Short-term support is at 12,350 followed by 12,200.
The S&P 500 advanced 5 points, or 0.4%, to close at 1,294. The index reached a peak of 1,303 before fading in the second half and dipping to a low of 1,290. We said a close above 1,300 could lead to some fluff up to 1,325-1,350 while support is at 1,275 with 1,250 serving as backup.
The Nasdaq popped 17 points higher, or 0.6%, to settle at 2,728. Tech managed to kiss a high of 2,742 and came within spitting distance of hitting our 2,750 target. We are still looking for a close above this level before we say the bulls have a REAL good shot at the 52-week high of 2,887. We mentioned the Tech names reporting earnings this week on Monday night and said they could play a big role in a break past resistance or a pullback to 2,650-2,600 if the 2,700 level doesn’t hold.
If Google (GOOG, $628.58, up $3.59), Intel (INTC, $25.04, down $0.10), International Business Machines (IBM, $180, up $0.84) and Microsoft (MSFT, $28.25, flat) can wow Wall Street on Thursday then the bears might have to throw in the towel for awhile. If not, we could get our expected February pullback a couple of weeks early.
As we head to press, futures are up and look like this: (Dow -9), S&P (-2), Nasdaq (+4).
Subscribers, check the Members Area for the specific trade instructions for today as we have set some HARD STOPS for a number of our current option trades. If there is a pullback, we want to protect our triple-digits profits on some trades and close out some of our other higher performing double-digit plays.
We will send out Trade Alerts if they are hit or if we take other action this morning so stay on your toes. Otherwise, we will see you back here on Wall Street’s lunch break.
Tags: GOOG, Google's earnings, IBM, INTC, Microsoft's earnings, MSFT
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Friday, January 21st, 2011
9:00am (EST)
The Dow spent much of Thursday in negative territory and traded to a low of 11,744 before rebounding late in the afternoon to recoup most of its losses. The index finished with a loss of 3 points and closed at 11,822 after trading up to 11,845.
The S&P 500 slipped 2 points and settled at 1,280 after trading down to 1,271. Like the Dow, the index made it into positive territory late in the day and traded up to 1,296.
Meanwhile, the Nasdaq was never close to sniffing green as the index stayed in the red all day long. Tech hit a low of 2,686 before closing down 21 points at 2,704. The index is right at its 20-day moving average so watch the 2,700 level today.
Futures are pointing toward a higher open this morning thanks in part to Google (GOOG, $626.77, down $4.98) which reported a blowout quarter. The company announced profits of $2.5 billion, or $7.81 a share, versus $2 billion, or $6.13 a share, in the year earlier quarter.
Excluding stock-compensation charges, Google numbers really came in at $8.75 (a share) which was ahead of analyst’s estimates for $8.06. Revenue surged over 25% to $8.44 billion, up from $6.67 billion, and ahead of expectations.
In a surprising move, the company also switched up its top brass as co-founder, Larry Page, will be the new CEO and takes over for Eric Schmidt who will become Executive Chairman.
As we head to press, here is a look at the futures: Dow (+42); S&P 500 (+7), Nasdaq 100 (+15). We will probably release a trade shortly after the open so stay close to you email inbox.
Tags: call options, GOOG, Google's earnings, momentum options, Momentum stocks, NASDAQ: GOOG, option signals
Posted in Earnings, Google | Comments Off
Friday, April 16th, 2010
9:05am (EST)
The bulls extended the major indexes winning streak to six following Thursday’s gains. However, judging by this morning’s futures, the bulls will have to dig out of a hole to make it seven in-a-row.
The Dow managed to squeeze a 22 point win and closed at 11,144 after touching a low of 11,096 on Thursday. The index peaked at 11,154 and touched another new 52-week high in the process.
The S&P 500 added a point to finish at 1,211 while the Nasdaq added 11 and settled at 2,515.
The big news after the close last night was Google’s (GOOG, $595.30, up $6.30) numbers. Although impressive, shares got hammered, losing 29 points, and were last seen at $566 in pre-market trading.
The company earned nearly $2 billion, or $6.06 per share, in the quarter, versus $1.4 billion, or $4.49 per share, in the year-ago period. Goog’s would have earned $6.76 a share but took a hit for expenses covering employee stock compensation. Wall Street was expecting $6.60 a share on average.
Revenue surged over 20% to $6.8 billion which marked Google’s greatest revenue growth since 3Q08. After subtracting commissions paid to advertising partners, Google’s revenue really came in at a little over $5 billion but was still about $90 million above estimates.
We said yesterday that Google was the wild card and we also said we could get a “curveball”. Well, we did. The real deal with Google’s big drop was the fact the company’s CEO, Eric Schmidt, was NOT on the conference call. To compare it to the sports world, it would be like a NFL owner not going to the Super Bowl when the team he owns is in it.
To put things in perspective, the 30 point drop in the stock is only a 5% fall and the rumors on why their CEO did not do the yapping on the earnings call are running rampant. Look, the rumors are overblown. Yes, Google didn’t do a very good job of giving Wall Street a heads-up but this morning’s sell-off will be met with buying.
Bank of America (BAC, $19.48, up $0.08) and General Electric (GE, $19.50, up $0.15) reported this morning before the opening bell and that has helped futures come up off of their lows after they beat estimates.
Both stocks are flat as we head towards the open with BAC up a few pennies while GE is down a penny.
As we head to press, Dow futures are lower by 23, Nasdaq 100 futures are off by 6 while the S&P 500 futures are down 4.
Tags: bac, Bank of America earnings, GE, GOOG, Google's earnings, option picks, option signals, options alerts, stock options trading
Posted in Earnings, Google, Market Commentary | Comments Off
Friday, January 22nd, 2010
9:10am (EST)
The market took another pounding yesterday as the bears took the Dow down another 223 points (-2%) to 10,389. We mentioned yesterday that we hoped 10,400 would hold so we weren’t too excited about the close.
The S&P 500 tumbled 21 points, or 1.9%, to finish at 1,116 and at least held the 1,100 level. The damage to the Nasdaq was “limited” to a 25 point loss, or 1.1%, as the Tech-heavy index finished at 2,265.
We have talked over and over again about Dow 10,800; S&P 500 1,175 and Nasdaq 2,275. Those were our targets we set back in August and it has been well documented in the Weekly Wrap we do on Sunday nights.
The Dow hit a high of 10,767 last Thursday and on Tuesday the index hit a high of 10,763. We came within spitting distance of hitting 10,800. Folks, if you find another newsletter that has called this top (if this is the top) back in August for the Dow, please let us know.
We have an uncanny ability to get a good read on the market and we have told you the waters would be murky once we got here.
Exactly one week ago we had this to say:
“We have mentioned our targets for the indexes and from our camp it looks like the market is nearing a top which makes it harder to trade. It’s possible we rally for a few more weeks but once we get to February we think there’s a chance of a 5%-10% pullback.” (END)
We were expecting a market breakout but the Obama news is really killing the momentum of the bulls and the Financial stocks. Earnings have been spectacular but we have not seen the blow-off type rally that would normally follow with this kind of market environment. Companies are reporting jaw-dropping results, especially the financials, but are getting crushed.
Google (GOOG, $562.75, down $20.23) reported after the bell last night and easily beat Wall Street’s expectations. However, inn pre-market trading, shares are sharply lower.
As we head to press, Dow futures are lower by 46 while the S&P futures are down 4 points. Meanwhile, the Nasdaq futures are higher by 3 points. Should be another interesting day…
Tags: Google's earnings, option picks, option signals, options alerts, stock options trading
Posted in Company Commentary, Earnings, Market Analysis, Market Commentary | Comments Off
Wednesday, October 15th, 2008
The market is down halfway through the session and Bernanke is on deck and should be speaking any minute now.
The Dow is down 324 points to 8,987.
It’s frustrating to see the market down for those who are bullish but be patient. The sledding will be choppy but until the Dow and Nasdaq get on a mini winning streak, it’s going to remain that way.
Google (GOOG, $347.71, down $15.00) will be announcing earnings after the close on Thursday. I’m telling you, this one could get interesting. Google’s 52-week low is $310, its high – $747. For a possible strangle earnings trade on Google look at these options.
The October 400 calls (GOPJT, $5.10, down $2.90) and the October 290 puts (GGDVR, $3.40, up $1.15). Together, they would cost $8.50. A 60 point move in Google could give you an 8%-10% gain for a two-day trade.
Have a Coke and a smile brother. Coca-Cola (KO, $45.73, up $2.00) announced a 15% jump in earnings and is eating PepsiCo’s (PEP, $53.51, down $0.89) lunch.
Bernanke just hit the podium and we have headed lower. The Dow is now down over 400 points. He looks nervous.
Good to see Apple (AAPL, $104.28, up $0.19) above $100 again. The November 120 calls (QAAKD, $6.05, down $0.05) should be bought two-to-one against the Novemebr 80 puts (QAAWP, $3.90, up $0.20) if you bullish. Vice-versa if you are bearish.
Chipotle Mexican Grill (CMG, $41.63, down $3.92) has made another 52-week low. Earnings are due out on October 22. Regular readers of the blog know all about this stock first hand. It’s been our own personal ATM over the past year. Numerous negative analyst reports have popped up this week on the restaurant sector which has pushed Chipotle down to ridiculously cheap levels as some would like to think. That may be so, but if they miss earnings, then we could see Chipotle in the low $30′s.
The October 45 puts (CJYVI, $4.40, up $2.25) are getting some love and have doubled this morning. Sometimes it pays to get out of bed early. They opened at $2.15.
Chipotle could still have some more downside risk but if they do miss earnings, the stock may be too cheap to pass up if it get in the $20′s.
Rick Rouse
Rick@OptionsMentoring.com
Tags: Apple, Ben Bernanke, Chipotle Mexican Grill, Coca-Cola, Google's earnings, PepsiCo
Posted in Company Commentary | No Comments »
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Thursday’s 4 Horsemen (GOOG, INTC, MSFT, IBM)
Wednesday, January 18th, 2012
9:00am (EST)
The bulls got off to a good start on Tuesday following Monday’s holiday as overnight and morning futures were up significantly before the European markets opened for trading. The major averages surged 1% out of the gate but finished the day giving back half the highs and then some after pushing another layer of resistance. Still, the surge higher put the momentum back on the bulls side following Friday’s setback but the close yesterday wasn’t fancy and didn’t excite us.
The Dow added 60 points, or 0.5%, to finish at 12,482. The blue-chips reached a high of 12,573 as they managed to stay in positive territory throughout the session. The move near resistance at 12,600 clears the way for a run up to 12,800-12,875 with a shot at 13,000 but that might be asking a bit much before we get a pullback. Short-term support is at 12,350 followed by 12,200.
The S&P 500 advanced 5 points, or 0.4%, to close at 1,294. The index reached a peak of 1,303 before fading in the second half and dipping to a low of 1,290. We said a close above 1,300 could lead to some fluff up to 1,325-1,350 while support is at 1,275 with 1,250 serving as backup.
The Nasdaq popped 17 points higher, or 0.6%, to settle at 2,728. Tech managed to kiss a high of 2,742 and came within spitting distance of hitting our 2,750 target. We are still looking for a close above this level before we say the bulls have a REAL good shot at the 52-week high of 2,887. We mentioned the Tech names reporting earnings this week on Monday night and said they could play a big role in a break past resistance or a pullback to 2,650-2,600 if the 2,700 level doesn’t hold.
If Google (GOOG, $628.58, up $3.59), Intel (INTC, $25.04, down $0.10), International Business Machines (IBM, $180, up $0.84) and Microsoft (MSFT, $28.25, flat) can wow Wall Street on Thursday then the bears might have to throw in the towel for awhile. If not, we could get our expected February pullback a couple of weeks early.
As we head to press, futures are up and look like this: (Dow -9), S&P (-2), Nasdaq (+4).
Subscribers, check the Members Area for the specific trade instructions for today as we have set some HARD STOPS for a number of our current option trades. If there is a pullback, we want to protect our triple-digits profits on some trades and close out some of our other higher performing double-digit plays.
We will send out Trade Alerts if they are hit or if we take other action this morning so stay on your toes. Otherwise, we will see you back here on Wall Street’s lunch break.
Tags: GOOG, Google's earnings, IBM, INTC, Microsoft's earnings, MSFT
Posted in Earnings, Market Analysis, Market Commentary | Comments Off