Markets sold off on Monday, in another volatile session, with wide swings in the S&P, DOW, and Nasdaq. Oil continued it’s tumble yesterday and is adding to it’s losses today, hitting $53.80 at points overnight. The Ruble and Russia crash continues to steal the headlines, as the Russia economy looks to be in shambles, its currency in a free-fall, and it’s bond Yields nearing 20%.
Futures were green overnight, but have since found weakness this morning, falling as much as .75% in the pre-market session. The US dollar is also under pressure, off nearly .84%, while putting the Yen up 1.7%, and the Euro up .84%. These are all massive moves in the forex world, and I would expect similar wild swings in equity prices again today as folks try and figure out the ramifications.
Gold initially fell under $1200 again this morning, but the Dollar weakness eventually put a bid in Gold, and it rallied into the green. I still have my DUST calls and will likely hold them all through tomorrows FOMC statement and press conference. GOLD has found weakness the following day after the last few FOMC meetings so will play for the trend to continue.
PCLN was removed from GS conviction buy list this morning. I am holding 1035/1000 P and will likely look to close at least the 1035s at some point today on weakness.
I continue to watch for a close above the 50dma on the SPY ($200.28) and the RUT (1143), as areas where I feel more comfortable trying to add more call positions. For now, I plan to keep things small, and control risk, while dabbling in a few put positions to take advantage of weakness.
Here are the analyst changes of note for today:
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Facebook engagement metrics remain strong, says JPMorgan |
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JPMorgan says Facebook’s share of overall Internet time improved month-over-month to 16.9% from 16.2% in October while its share of mobile time excluding Instagram and Whatsapp increased to 21% versus 20% in October. The firm says Facebook's engagement metrics remain strong and it reiterates an Overweight rating on the stock with an $85 price target |
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Shutterfly downgraded to Neutral from Buy at Goldman |
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Goldman downgraded Shutterfly to Neutral based on slower growth, slow progression of ThisLife, and reduced likelihood of M&A. Price target lowered to $45 from $53. Note Goldman raised the Americas Internet sector to Attractive from Neutral |
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ServiceNow initiated with a Buy at Goldman |
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Goldman Sachs started shares of ServiceNow with a Buy rating and $80 price target. Yesterday, RBC Capital upgraded the shares to Top Pick and upped its price target for the name to $80 from $70 |
$BAC Bank of America Maintains Buy on priceline.com Incorporated, Raises PT to $1.31K
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Martin Marietta downgraded to Buy from Conviction Buy at Goldman |
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Goldman Sachs downgraded Martin Marietta Materials to Buy from Conviction Buy after lowering its pricing and volume estimates in Texas to reflect reduced oil prices. Goldman cut its price target for shares to $130 from $159 |
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Microsoft downgraded to Underperform from Neutral at BofA/Merrill :t |
$PCLN downgraded to Buy from Conviction Buy at Goldman
Shares remain Buy rated with a $1,400 price target
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GrubHub upgraded to Buy from Neutral at Goldman |
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Goldman upgraded GrubHub to Buy and said the company is positioned to grow diner penetration and restaurant coverage in the U.S. takeout and delivery market. The analyst said GrubHub has less than 2% share currently of an estimated $77B market and is exhibiting early success in growing penetration and efficiencies. Goldman views risk/reward as favorably and raised tis price target to $43 from $42. Note Goldman raised the Americas Internet sector to Attractive from Neutral |
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Western Digital story remains under-appreciated, says Brean Capital |
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Brean Capital believes the enterprise value/free cash flow valuation for Western Digital remains under-appreciated. The firm sees an improving product mix and ongoing margin expansion and believes the company's acquisition of Skyera is a positive. Brean Capital reiterated its Buy rating and $125 price target on Western Digital shares |
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Monster Beverage upgraded to Buy from Outperform at CLSA |
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CLSA upgraded Monster (MNST) to Buy and raised estimates to reflect higher international growth forecasts from its partnership with Coca-Cola (KO). Price target raised to $130 from $110 |
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Alcoa Q4 EPS should beat expectations, says Stifel |
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Stifel raised its Q4 EPS estimate for Alcoa to 27c from 20c, versus the consensus outlook of 23c. The firm cited increases in its alumina and aluminum price estimates as reasons for the EPS estimate increase. Stifel keeps a $20 price target and Buy rating on the shares |
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Autodesk a top pick for 2015, says Cowen |
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Cowen highlighted Autodesk as a top pick for 2015 as the company implements a plan to steer its customers to subscription offerings, which should lead to a wave of perpetual buying in the upcoming years. Cowen reiterated its Outperform rating and $73 price target on Autodesk shares |
Caterpillar downgraded to Underperform from Neutral at Macquarie
I am having issues again with the positions tracker, so here is the one coming into yesterday.
Yesterday I added PCLN $1035/1000 p, REGN $375 P, and flipped UPS calls. Should have it fixed sometime this morning.
Will look to keep it very small today and will continue to look for a spot to get into Z calls:
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Stock Ticker |
Call/Put |
Strike |
Expiration |
Closing Price |
Possible Entry Price |
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Z |
CALL |
$132.00 |
Dec weekly(26th) |
.30 x .50 |
0.40 |
Lets have a great day!
- JB