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Wednesday, April 18th, 2012
1:00pm (EST)
IBM (IBM, $201.63, down $5.82) and Intel (INTC, $27.91, down $0.56) are weighing on the market after reporting earnings after the close on Tuesday. IBM beat estimates but missed on revenues while Intel is trading lower after reporting lower gross margins for the quarter.
The Dow is currently down 60 points to 13,055 as IBM has accounted for 43 negative Dow points while Intel was worth a 4 point hit on the index.
The S&P 500 is lower by 5 points to 1,386 while the Nasdaq is off 12 points to 3,030.
The market rallied on Spain’s successful bond auction yesterday but the real test will come on Thursday when they try to sell 2 and 10-year bonds. Earnings will be heavy after the bell and on Thursday with Bank of America (BAC, $8.95, up $0.03), eBay (EBAY, $35.99, down $0.09) and Qualcomm (QCOM, $66.79, down $0.44) set to report over the next 24 hours.
Subscribers, check the Members Area for the trade updates and we will back in the morning with a full briefing.
Tags: BAC earnings, IBM, INTC, Intel earnings
Posted in Earnings, Market Analysis | Comments Off
Monday, January 23rd, 2012
9:00am (EST)
Well, Europe didn’t flare up and 4Q earnings came in halfway decent for some, not so good for others. These were the 2 catalysts that we said would move the market higher or lower last week and the results favored the bulls who were able to push another layer of resistance.
It was a shortened week for the market but the indexes moved higher on Tuesday following good news out of China but gave back half the gains after the Financial sector ended mixed. Citigroup (C, $29.64, up $0.31) and Wells Fargo (WFC, $30.54, up $0.39) missed and beat Wall Street’s estimates after announcing earnings to start the week.
There was follow through on Wednesday as the major averages ended the session with 1% pops, on average. eBay (EBAY, $31.93, up $0.42) posted better-than-expected results on the strength of their PayPal business which is going gang-busters globally.
We were expecting a flat to down Thursday as we weren’t sure what kind of numbers the jobs market would post before the bell and a number of Tech’s heavy-hitters were reporting earnings after the close. Thankfully, Initial Claims fell to their lowest level (351,000) in 4 years which put the bulls in a good mood and took some of the pressure off of Tech – which ended up leading the way higher. Bank of America (BAC, $7.07, up $0.11) gave the Financial stocks a lift after beating expectations.
Friday’s action was all about “old” Tech versus “new” Tech as Google (GOOG, $585.99, down $53.58), Intel (INTC, $26.38, up $0.75), International Business Machines (IBM, $188.52, up $0.08) and Microsoft (MSFT, $29.71, up $1.59) weighed-in with their numbers, which were good for the most part. The ugly duckling was Google which dropped 8% after missing Wall Street’s estimates. Intel, IBM and Microsoft accounted for 78 blue-chip points.
As a result, the Dow gained 96 points, or 0.8%, to end at 12,720. The blue-chips dipped to a low of 12,620 at the open but held new short-term support at 12,600 which was prior resistance. We could not have called this much better as we said a break above 12,600 would lead to a test up to 12,750-12,800…(read more)
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If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007. We are off to a fast 14-1 start for 2012 and our subscribers have already closed 3 triple digit winning trades for gains of 124%, 100%, and 131% and another call option trade for 82%.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and went 16-0 for 2011 and is 8-0 so far in 2012 after the trades we closed on Friday. Sign-up now and receive access instantly to our stock options trading recommendations!
If you are missing these juicy profits come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2011 Track Records by sending us an email or filling out the box to the right.
Tags: c, eBay, GOOG, IBM, INTC, MSFT, wfc
Posted in Earnings, Market Analysis, Market Commentary | Comments Off
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
Thursday, July 21st, 2011
9:00am (EST)
Go figure.
On a day the Financial stocks actually showed some strength, Tech lagged along with several other sectors which weighed on the market for much of Wednesday’s session. More bad news from the housing sector also held back the early momentum the bulls had going on strong earnings reports from Tuesday night and yesterday morning.
Some of Tech’s best failed to power the market past resistance despite spanking Wall Street’s numbers. As usual, there were one or two bad apples which ruined the party but overall, the numbers have been solid.
Wall Street also took a step back after hearing June Existing Home Sales came in at 4.77 million units versus expectations for 4.93 million unit sales. The news was surprising, considering Tuesday’s Housing Starts came in at their highest levels of the year.
The bulls were also facing the next wave of resistance and following Tuesday’s pop we figured there might be a slight pullback as prior resistance was trying to hold as support. Finishing near the flat line was even better.
The Dow fell 15 points, or 0.1%, and settled at 12,571. The blue-chips kissed 12,603 which was right on our 12,600 target and will need a close above this level to confirm a push towards 12,800 is coming. The low was 12,546 and 12,350 still serves as short-term support.
The S&P dipped less than a point and closed at 1,325. The index traded to 1,330 at the open and tested this level in the afternoon which was just below the 1,334 target that needs to be cleared for a shot at 1,350. The bears managed a test down to 1,323 and support is still strong at 1,300.
The Nasdaq slipped a dozen points, or 0.4%, and finished at 2,814. Tech held the 2,800 level as it traded to a low of 2,808 after pushing 2,839 at the open. We mentioned resistance was strong at 2,850 and with the 52-week high at 2,887, the bulls will need a lot of firepower to past these levels.
One silver lining was that the S&P Volatility Index (^VIX, 19.09, down 0.12) stayed below 20 following Tuesday’s 8% drop.
Of course, the bulls have been bringing out the heavy artillery, being so close to resistance, and last night was no exception. Intel (INTC, $22.97, down $0.07) and Qualcomm (QCOM, up $57.30, up $0.32) both topped Wall Street’s expectations but the reaction in after-hours trading wasn’t too pleasant.
Shares of each company dropped 2% and 3%, respectively, which has carried over into this morning pre-market action. Not good, but we will see how the bulls deal with it.
Futures have been pointing towards a higher open since the sun cracked here on the Right Coast. As the heat wave across America gets hotter along with the hot seats in Congress over the debt bill, tensions are high which means we will continue to see some classic summer volatility.
As we head to press, Dow futures are higher by 68 points to 12,575 while the S&P futures are up 8 points to 1,330. The Nasdaq futures are showing a pop of 10 points to 2,392.
Tags: binary options QCOM, call options, futures options, high beta stocks, Hot stocks, INTC, momentum options, Momentum stocks, option market, option tips, options, options mentoring, options trading, options trading course, stock market options, weekly options, what are options
Posted in Earnings, Market Analysis, Strategies, VIX | Comments Off
Thursday, May 5th, 2011
8:50am (EST)
We knew before the market opened on Wednesday it was headed lower. Although futures were holding up, the atmosphere felt bearish and the lack of follow through following Monday’s big pop at the open has been apparent all week. Economic news has come in below the belt and tomorrow’s nonfarm payrolls report and unemployment numbers have Wall Street nervous. Earnings have been coming in mixed and are winding down which leaves few catalysts for the bulls to break resistance as we head into the heart of May.
The Dow was down triple-digits, or 135 points, by midday and touched a low of 12,673. The index danced between our 12,600-12,700 support areas before finishing with a loss of 84 points, or 0.7%, at 12,723.
Caterpillar (CAT, $110.77, down $2.50), Chevron (CVX, $104.68, down $1.49) and International Business Machines (IBM, $170.62, down $2.25) accounted for over half of the Dow’s losses (-47 Dow points) as Energy and Tech stocks continue to struggle.
The S&P 500 fell nearly 10 points, or 0.7%, and settled at 1,347. The index closed below our 1,350 support target and its 10-day moving average after touching a low of 1,341.
The Nasdaq dropped 13 points, or 0.5%, and closed at 2,828. Tech traded to a low of 2,808 and we said to watch the 2,800 level for support. However, there is still pressure down to 2,750 over the near-term and the chart gets uglier on a break below these levels.
The Intel (INTC, $23.50, up $0.45) news at lunchtime did help the Tech sector recover somewhat after the company introduced a new 3D chip to help keep pace with the rapidly growing mobile device market. Shares set a new 52-week high of $23.56 in the process and seem to be rejuvenated after buyers rushed in.
In earnings news, Electronic Arts (ERTS, $19.92, down $0.24) reported their numbers after the close last night and they were impressive. The company said profits were $83 million, or $0.25 a share, versus $30 million, or $0.09 a share, in the year ago period.
Revenue was up to $1.1 billion from $979 million. EA said its digital revenue business grew over 70%, to nearly $270 million, up from $144 million a year earlier. We have been telling you about this story for a few quarters now and EA is starting to put the pieces towards a rock-solid, high margin business.
As far as Wall Street’s expectations, they had the company earning $0.22 a share on revenue of $923 million.
The stock went on a roller-coaster ride in extended trading as investors fretted their outlook. Electronic Arts said it expects current quarter revenue of $460-$500 million which was below analysts’ forecast of $518 million, on average. Also, EA expects revenue for the full fiscal year to come in at $3.75-$3.95 billion, versus estimates for $3.94 billion. In other words, they sandbagged their numbers.
Shares were down 10% to under $19 shortly after the closing bell but recovered when the smart buyers rushed in to grab the discount. The stock finished last night at $20.25 after reaching nearly $21 and is at $20.60+ this morning.
EA’s core titles are still doing well but their strength going forward is their switch to online gaming which is cheaper. Here is what their CEO said about their digital revenue business:
“I’m particularly proud of EA’s rapid growth and scale in digital, and the growth rate almost doubled that of the digital sector overall. We did it in a way no other competitor can.”
That last sentence in bold is powerful, folks.
We have been a big fan of this stock since last November at $15 and our 12-month price target has been $30. Electronic Arts will be “the” dominate online gaming company as we move into the mobile future and although shares will be volatile, we think they are attractive at current levels.
Futures are showing a lower this morning. Dow futures are down 63 points to 12,609 while the S&P futures are lower by 8 points to 1,335. Nasdaq 100 futures are off 12 points to 2,371. Subscribers, check the Members Area for the updates.
Tags: call options, ERTS, high beta stocks, Hot stocks, INTC, momentum options, Momentum stocks, option tips, options trading course, stock market options, strangle option trades, weekly options
Posted in Earnings, Market Commentary | Comments Off
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Bulls Eye April Highs, Bears Banking on Greece
Monday, January 23rd, 2012
9:00am (EST)
Well, Europe didn’t flare up and 4Q earnings came in halfway decent for some, not so good for others. These were the 2 catalysts that we said would move the market higher or lower last week and the results favored the bulls who were able to push another layer of resistance.
It was a shortened week for the market but the indexes moved higher on Tuesday following good news out of China but gave back half the gains after the Financial sector ended mixed. Citigroup (C, $29.64, up $0.31) and Wells Fargo (WFC, $30.54, up $0.39) missed and beat Wall Street’s estimates after announcing earnings to start the week.
There was follow through on Wednesday as the major averages ended the session with 1% pops, on average. eBay (EBAY, $31.93, up $0.42) posted better-than-expected results on the strength of their PayPal business which is going gang-busters globally.
We were expecting a flat to down Thursday as we weren’t sure what kind of numbers the jobs market would post before the bell and a number of Tech’s heavy-hitters were reporting earnings after the close. Thankfully, Initial Claims fell to their lowest level (351,000) in 4 years which put the bulls in a good mood and took some of the pressure off of Tech – which ended up leading the way higher. Bank of America (BAC, $7.07, up $0.11) gave the Financial stocks a lift after beating expectations.
Friday’s action was all about “old” Tech versus “new” Tech as Google (GOOG, $585.99, down $53.58), Intel (INTC, $26.38, up $0.75), International Business Machines (IBM, $188.52, up $0.08) and Microsoft (MSFT, $29.71, up $1.59) weighed-in with their numbers, which were good for the most part. The ugly duckling was Google which dropped 8% after missing Wall Street’s estimates. Intel, IBM and Microsoft accounted for 78 blue-chip points.
As a result, the Dow gained 96 points, or 0.8%, to end at 12,720. The blue-chips dipped to a low of 12,620 at the open but held new short-term support at 12,600 which was prior resistance. We could not have called this much better as we said a break above 12,600 would lead to a test up to 12,750-12,800…(read more)
********************************************
If you are not a subscriber but would like to read more please click here. We are one of the fastest growing stock options trading advisors on the internet and we are one of the very few option newsletters which posted a powerful 2011 return. In fact, we have NEVER had a losing year since forming in 2007. We are off to a fast 14-1 start for 2012 and our subscribers have already closed 3 triple digit winning trades for gains of 124%, 100%, and 131% and another call option trade for 82%.
We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter. Our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis and went 16-0 for 2011 and is 8-0 so far in 2012 after the trades we closed on Friday. Sign-up now and receive access instantly to our stock options trading recommendations!
If you are missing these juicy profits come give us a try. Get your password to our Members Area instantly when you sign up TODAY! One profitable trade will easily pay for your membership. You can request our 2008-2011 Track Records by sending us an email or filling out the box to the right.
Tags: c, eBay, GOOG, IBM, INTC, MSFT, wfc
Posted in Earnings, Market Analysis, Market Commentary | Comments Off