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Wednesday, July 18th, 2012
12:30pm (EST)
Intel (INTC, $26.20, up $0.82) reported earnings after the close yesterday and they came in better-than-expected, for the most part. The company announced a quarterly profit of $2.83 billion, or 54 cents a share, versus $2.95 billion, or 54 cents a share, in the year ago period. Sales were up 4% to $13.5 billion. Wall Street analysts were looking for 52 cents a share on revenue of $13.6 billion.
For the current quarter, Intel said sales will be $14.3 billion, plus or minus $500 million. The suit-and-ties have a forecast of $14.6 billion so Intel kept them on their toes. Gross margins are expected to come in at 63% while analysts had penciled-in 64%.
We profiled a straddle and strangle option trade for INTC in our video for our trading course, How to Trade Options on Momentum Stocks, on Sunday night. We talked about how Intel has averaged a 3 cents beat over the past 4 quarters but we weren’t expecting a huge move to the upside for Intel as many companies are blaming Europe for sales misses and lowered forecasts but we knew there could be a pop.
We also suggested if they missed estimates shares could tank 5%-10%.
The August options trades we profiled were listed on our Watch List Tuesday morning but we stayed on the sidelines as we are currently wrapping up our July trades. We wanted to show how these strategies can be used in choppy and volatile markets because our next batch of NEW TRADES may be strangle or straddle option trades as we continue to wait for a market breakout or breakdown.
With the indexes moving 2% intraday, we may deploy some of these types of trades in the upcoming months, especially if we continue to remain range bound. Remember, we still expect even larger price swings in the indexes over the coming months so don’t be nervous in using them if they become official recommendations.
International Business Machines (IBM, $187.04, up $3.39) will report their numbers after the close today so the blue-chips could be setting up for a big move on Thursday as the stock is a huge Dow component.
As we head to press, the Dow is up 105 points to 12,910 while the S&P is higher by 10 points to 1,374. The Nasdaq is showing a 38 point pop and is at 2,947.
We have a few more thoughts and a chart inside our Members Area for what tomorrow’s action could look like so make sure you check the artwork.
Tags: IBM earnings, IBM options, INTC, straddle and strangle option trades Posted in Earnings | Comments Off
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
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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