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Friday, August 19th, 2011
1:30pm (EST)
The market has traded on both sides of the ledger today as the bears were able to push near-term support while the bulls have battled back as we head into the second half of trading. It seems Wall Street is having a hard time deciding on whether to stay long or short over the weekend which has caused some of the volatility although the indexes have remained in a somewhat tight range. We were expecting a little more pressure to the downside, and maybe that comes in the final hour, but as we have seen for much of 2011, option expiration day has been rather uneventful.
One company feeling the heat is Hewlett-Packard (HPQ, $23.53, down $5.98) which is down 20% after announcing earnings last night after the bell. The company reported a profit of $1.93 billion, or $0.93 a share, versus $1.77 billion, or $0.75 a share, a year earlier. Its adjusted earnings were $1.10 per share, a penny above analyst expectations.
HP’s revenue came in at $31.2 billion, up from $30.7 billion which matched expectations. This was the good news.
Looking ahead, the company expects to earn $1.12- $1.16 a share, which was well below Wall Street’s forecast for $1.32 a share. HP also expects lower revenue of $32.1-$32.5 billion, which was about $2 billion shy of analysts’ estimates of $34 billion. This was the bad news.
The shocker came when the company announced plans to spin off its PC business, which also makes HP tablets and phones, in order to focus exclusively on software. The company is dropping all webOS devices, including the TouchPad, which was launched just under 2 months ago after failing to compete with Apple’s iOS system.
The transformation really isn’t a surprise though because rumors have been circulating since their CEO took office that he would try to expand the profitability of its software division while shedding the hardware business.
There have been a ton of analysts recommending this stock, especially when shares dipped below $40, but all of them are jumping ship today as there have been numerous downgrades on the stock.
HP’s new direction will likely take a year or two and we think the stock is dead money, or a losing bet, until things turnaround.
As far as the market, the Dow is down 45 points to 10,945while the S&P 500 is lower by 2 points to 1,138. The Nasdaq is up a deuce to 2,382.
We wanted to remind everyone our next update will be Sunday night and for a limited time (through the weekend), if you sign up for our Daily newsletter, we will also sign you up for our Weekly Wrap through mid-September. If you recently subscribed, or are a current member, you can also get the Weekly Wrap by sending our support team an email.
We will be coving a couple of option strategies over the next month which are awesome in this type of environment and instantly bring cash into your account. Yes, these strategies will be risky, but they aren’t if you know what you are doing.
The Weekly Wrap is a covered call newsletter which aims at making 8%-10% a month. Our 2011 winners include: DNDN +9%, PCX +13%, SGEN +26%, TIVO +34%, REDF +11%, PCX +7%, against no losers, yet. Folks, this is one of the best times ever to go bottom fishing on stocks you like and we will show you how to make income while owning them.
Our daily newsletter aims at triple-digit profits for every trade but the Weekly is designed to double your money in a year which will allow you to take our riskier trades we offer through the Daily.
Subscribers, check the Members Area our latest updates and will be back Sunday night so be sure you hit us up. Until then, have a great weekend, everyone!
Tags: About options trading, HPQ, HPQ earnings, option trading, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Tuesday, June 14th, 2011
9:00am (EST)
We didn’t expect much from Monday’s action as economic news was light and earnings are winding down to a trickle ahead of July’s big 2Q announcements. As such, the market ended flat for the session but we expect the action will pick up starting this morning as we have a number of headlines to report.
The Dow traded to a high of 12,011 but could only manage a 1 point gain and finished at 11,953. It was the Blue-Chips second-straight finish below 12,000 which has now become short-term resistance ahead of 12,200. Caterpillar (CAT, $95.44, down $1.35) and Hewlett-Packard (HPQ, $34.65, down $0.48) weighed on the index and accounted for 14 negative points. Short-term support remains 11,800-11,750.
We profiled Caterpillar last Monday inside our Members Area when shares were at $101 and said a test to $95 was coming, quickly. The July 95 puts (CAT110716P00095000, $3.20, up $0.45) were at $1.90 when we profiled the upcoming drop and the stock was at $101. Although it wasn’t an “official trade” the puts are up nearly 70% in a week which is where we would have taken profits.
As far as Hewlett-Packard, it looks like a falling knife we aren’t about to catch after hitting a fresh 52-week low of $34.60. We will have to check the chart but if further weakness is in store, we might have to add some put options to our Watch List.
The S&P 500 also added a point and settled at 1,271 after reaching a high of 1,277. The bulls were looking to hold 1,275 but still face pressure down to 1,250. Resistance is at 1,300 and then 1,325.
The Nasdaq slipped 4 points and closed at 2,639 after trading to an intraday low of 2,629. Short-term support is at 2,600-2,550 while resistance will come into play at 2,675-2,700.
Futures are soaring on a number of better-than-expected economic reports this morning and Best Buy (BBY, $28.82, up $0.39) is looking to open higher after beating Wall Street’s with their latest quarterly results. We will cover these stories in our afternoon update.
Dow futures are up 100 points to 11,985 while the S&P futures are showing are advancing by 14 points to 1,280. The Nasdaq futures are up 20 points to 2,240. We have a couple of MONSTER trades we are on the verge of closing which are up over 150% and 200%, respectively. We also have a few other option trades that we are also expecting to do well this week.
If you haven’t signed up with us yet or are nervous due to the current market volatility then don’t be. Remember, you can make just as much with put options in a lower trending market as you can with call options in a higher trending market so don’t be scared. Come get some action!
Subscribers, check the Members Area for the updates.
Tags: BBY, call options, CAT, high beta stocks, Hot stocks, HPQ, momentum options, Momentum stocks, option tips, options, options mentoring, options trading course, stock market options, weekly options
Posted in Market Analysis, Strategies, Trade Update | Comments Off
Tuesday, November 23rd, 2010
9:00am (EST)
The market ended mixed on Monday as the Nasdaq closed in positive territory while the Dow and S&P 500 finished in the red but off their lows of the session. Financial stocks were weak, led by Goldman Sachs (GS, $161.05, down $5.62) after it was named in a possible insider-trading investigation. We touched on this subject yesterday and it’s too early to tell if this is another Wall Street witch hunt or something more serious. There is chatter the probe could have a major impact on the financial industry, more so than we have seen in the past.
Bank of America (BAC, $11.30, down $0.36), fell 3% and is near its 52-week low of $11.03. We said a month ago shares of BAC could fall to $10 and possibly $8 if support at $13 was broken.
As a result, the Dow opened lower and things worsened as the index fell nearly 150 points to a low of 11,054 before rebounding sharply to finish at 11,178, down 25 points, or 0.2%. The 11,000 level held as support once again while 11,200 remains overhead resistance.
The S&P 500 fell 2 points, or 0.2%, to close at 1,197 after trading to a low of 1,184. We mentioned the strong support at 1,170-1,175 but the bulls need a close above 1,200 to kick-start the index.
The Nasdaq traded on both sides of the ledger but showed strength as it managed a 17 point gain, or 0.6%, to settle at 2,532. We are looking for a run back to the 2,600 level with support coming in at 2,500 and then 2,450.
Hewlett-Packard (HPQ, $43.25, up $0.76) came in with better-than-expected earnings after the bell. The company reported a profit of $2.54 billion, or $1.10 a share, compared with $2.4 billion, or $0.99 a share, in the year ago period. Revenue checked in at $33.3 billion, up from $30.8 billion.
Excluding items, HP earned $1.33 a share which was higher than Wall Street’s forecast of $1.27 a share on revenue of $32.8 billion.
Going forward, they told analysts to expect profits of $1.28-$1.30 a share, excluding charges, on revenue of $32.8 billion to $33 billion. The suit-and-ties had penciled in earnings of $1.22 a share on revenue of $32.7 billion.
The beat and raise by HP was nice to see but futures are pointing towards a nasty open after news of an exchange of fire between North and South Korea. North Korea fired dozens of artillery rounds at South Korean which said it fired back.
The geopolitical events have us looking at a triple-digit loss to start as Dow futures are lower by 103 points to 11,062. The S&P 500 futures are lower by 14 points to 1,185 while the Nasdaq 100 futures are down 20 to 2,134.
The bulls will be trying to hold support today so let’s see how this plays out. Subscribers, check the Members Area for the updates.
Tags: bear market, binary options, bull market, call option, how to trade options, HPQ, Momentum stocks, Nasdaq: HPQ, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Monday, November 22nd, 2010
12:20pm (EST)
The market opened lower to start today’s trading as European debt concerns continue to weigh on the market. Although Ireland got a lifeline, the bears believe the bailout will not be enough to stabilize the region and are now looking for Portugal needing one. However, these problems have been well known for some time so the bulls are trying to downplay the drama.
Tech has shown some strength and is trying to hold the breakeven line while the Dow and S&P 500 have been stayed in the red for much of the session.
As far as specific stocks, Green Mountain Coffee Roasters (GMCR, $35.27, up $5.01) is up 17% despite saying it will restate its financial performance over the past 3 years. We mentioned a few weeks ago that the Securities and Exchange Commission (SEC) was looking at the company’s books and the errors were found while the Green Mountain prepared for its year-end audit.
The company will now “rework” their numbers for fiscal years 2007-2009, as well as the first three quarters for this year. The adjustments aren’t expected to have much of an impact lower as the new results will likely shave 4-5 pennies a share off their bottom line. Wall Street is breathing a sigh of relief as they were expecting the adjustments to be much worse.
The other negative headline dragging the market lower is the news that Federal authorities could be close to “busting” insider traders once again. Their investigations could result in criminal charges or significant civil fines against Wall Street traders and executives for those who are found “guilty”.
This is going to be a touchy subject in the weeks and months ahead but most research analysts or independent research firms do their own homework. The question is how they get their information. We don’t view this as a “big” deal and the investigation had been expanded after an inquiry into the Galleon Group.
Technically, the indexes are holding up well and some of our current option recommendations are surging again which is all you can ask for to start a Monday.
As we head to press, the Dow is lower by 97 points to 11,107 and is finding support near the 11,100 area. The S&P is down 9 points to 1,191 and seems to be holding the 1,190 level while the Nasdaq is off 2 points to 2,512.
Tech has shown some leadership today and could get a lift if Hewlett-Packard (HPQ, $42.56, up $0.07) comes in with some good numbers after the bell today. The company is expected to post per-share earnings of $1.27, up 11% from last year.
We have a lot of action to cover in our Members Area as we have raised the stops to protect some profits. One of our trades has hit a triple-digit return and we are getting close to ringing the register on at least half. Subscribers, check for the updates!
Tags: bear market, binary options, bull market, call option, how to trade options, HPQ, Momentum stocks, Nasdaq: HPQ, option investments, option picks, option trading, options mentoring, options trading service, put option, stock market, stock market options
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
Tuesday, September 7th, 2010
9:00am (EST)
The market is pointing towards a lower open this morning to start the holiday-shortened week on concerns over the health of a few European banks. There isn’t much economic news or earnings releases scheduled to hit Wall Street this week so trading could be tricky. Although news will be light, Wednesday could be pivotal as the Fed will release its latest beige book report on regional economic activity.
The bulls will be trying to continue their momentum following a 3-day rally off last Tuesday’s lows while the bears look to hold key resistance levels. Across the pond, European markets are trading lower following a report said the country’s major banks have more potentially risky government debt on their books than was disclosed during the “stress tests” a couple of months ago..
In corporate news, Oracle (ORCL, $22.92, up $0.44) is up nearly 8%, to $24.67, in pre-market action after they announced it was hiring ex-CEO, Mark Hurd. The former CEO of Hewlett-Packard (HPQ, $40.34, up $0.66) resigned in August after a probe into sexual harassment allegations but could pump new life in Oracle.
As we head to press, Dow futures are down 50 points to 10,386 while the S&P 500 futures are lower by 6 points to 1,097. The Nasdaq 100 futures are off by 10 points to 1,857.
Subscribers, check the Members Area for the current updates.
Tags: HPQ, option picks, oracle, ORCL, stock options trading
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off
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Hewlett-Packard (HPQ) Puzzles Wall Street, Shares Slammed
Friday, August 19th, 2011
1:30pm (EST)
The market has traded on both sides of the ledger today as the bears were able to push near-term support while the bulls have battled back as we head into the second half of trading. It seems Wall Street is having a hard time deciding on whether to stay long or short over the weekend which has caused some of the volatility although the indexes have remained in a somewhat tight range. We were expecting a little more pressure to the downside, and maybe that comes in the final hour, but as we have seen for much of 2011, option expiration day has been rather uneventful.
One company feeling the heat is Hewlett-Packard (HPQ, $23.53, down $5.98) which is down 20% after announcing earnings last night after the bell. The company reported a profit of $1.93 billion, or $0.93 a share, versus $1.77 billion, or $0.75 a share, a year earlier. Its adjusted earnings were $1.10 per share, a penny above analyst expectations.
HP’s revenue came in at $31.2 billion, up from $30.7 billion which matched expectations. This was the good news.
Looking ahead, the company expects to earn $1.12- $1.16 a share, which was well below Wall Street’s forecast for $1.32 a share. HP also expects lower revenue of $32.1-$32.5 billion, which was about $2 billion shy of analysts’ estimates of $34 billion. This was the bad news.
The shocker came when the company announced plans to spin off its PC business, which also makes HP tablets and phones, in order to focus exclusively on software. The company is dropping all webOS devices, including the TouchPad, which was launched just under 2 months ago after failing to compete with Apple’s iOS system.
The transformation really isn’t a surprise though because rumors have been circulating since their CEO took office that he would try to expand the profitability of its software division while shedding the hardware business.
There have been a ton of analysts recommending this stock, especially when shares dipped below $40, but all of them are jumping ship today as there have been numerous downgrades on the stock.
HP’s new direction will likely take a year or two and we think the stock is dead money, or a losing bet, until things turnaround.
As far as the market, the Dow is down 45 points to 10,945while the S&P 500 is lower by 2 points to 1,138. The Nasdaq is up a deuce to 2,382.
We wanted to remind everyone our next update will be Sunday night and for a limited time (through the weekend), if you sign up for our Daily newsletter, we will also sign you up for our Weekly Wrap through mid-September. If you recently subscribed, or are a current member, you can also get the Weekly Wrap by sending our support team an email.
We will be coving a couple of option strategies over the next month which are awesome in this type of environment and instantly bring cash into your account. Yes, these strategies will be risky, but they aren’t if you know what you are doing.
The Weekly Wrap is a covered call newsletter which aims at making 8%-10% a month. Our 2011 winners include: DNDN +9%, PCX +13%, SGEN +26%, TIVO +34%, REDF +11%, PCX +7%, against no losers, yet. Folks, this is one of the best times ever to go bottom fishing on stocks you like and we will show you how to make income while owning them.
Our daily newsletter aims at triple-digit profits for every trade but the Weekly is designed to double your money in a year which will allow you to take our riskier trades we offer through the Daily.
Subscribers, check the Members Area our latest updates and will be back Sunday night so be sure you hit us up. Until then, have a great weekend, everyone!
Tags: About options trading, HPQ, HPQ earnings, option trading, stock and option, stock exchange, stock to buy, stock trading, trade online, trading futures, trading online, trading system, what are stock options, what is a call, what is option trading
Posted in Earnings, Market Analysis, Market Commentary | Comments Off