Another strong week for the market surprising even me. The SPY blasted above 167 on friday then settled at 166.94... 166.94! Thats right, it’s not a typo. A few months back we were worried about $140 on the SPY, now we are worried about $170! Things can really get interesting as the weeks progress here as the only real negative catalyst folks have been hyping is Fed cutting back it’s purchase program. The Debt ceiling debate has taken a back burner as Fannie and Freddie helped the government stuff it’s coffers, and has given time to the politicians to work something out.
The Fed minutes are released on Wednesday, and folks will be scouring for any hint of scaling back QE. Big Ben also will be giving a Testimony on the economy, which may or may not have hints of QE as well. I think Big Ben is a lame duck now, and will not be issuing any market moving news, but we shall see.
We still have some nice earnings plays this week. We reviewed some of them in the week ahead Webinar for those who missed it: https://www.optionmillionaires.com/forum/showthread.php/421-The-Week-Ahead-with-UPB-and-JB-5-19-2013?p=684#post684
UPB also has some trade ideas to start the week: https://www.optionmillionaires.com/2013/trade-ideas-for-this-week-aapl-ntap-low-tlt-and-possible-earnings-trades/
QIHU reported strong earnings this morning, and the stock is up nicely pre-market. Silver and Gold tanked as futures opened last night, and have since rallied back some. Still think they both have a ways to go down, and will be interesting to see if Gold can make it 8 down days in a row!
Here are some of the analyst changes for today:
|TSO Tesoro price target raised to $69 from $58 at Imperial Capital|
|Imperial Capital raised its price target for Tesoro after the FTC cleared the company's acquisition of BP Carson. The firm keeps an Outperform rating on the stock.|
|CF Industries downgraded to Hold from Buy at Miller Tabak|
|Miller Tabak downgraded CF Industries due to valuation. Price target remains $220.|
|DDD 3D Systems price target raised to $54 from $44 at Maxim|
|Maxim raised its price target for 3D Systems saying additive fabrication is in early stages of technology adoption. The firm keeps a Buy rating on the stock|
|JCP Follow-up: J.C. Penney upgraded to Buy from Hold at Maxim|
|Maxim upgraded J.C. Penney on expectations the company's strategy changes under new CEO Mike Ullman will drive traffic. The firm said its recent channel checks indicate that store traffic has increased and it raised its price target for shares to $27 from $16.50|
|SNDK SanDisk downgraded to Neutral from Buy at Nomura|
|Nomura downgraded SanDisk due to valuation. Price target is $60|
|QIHU Qihoo 360 price target raised to $49 from $41 at Stifel|
|Stifel increased its price target on Qihoo after the company reported Q1 results that the firm views as strong, and provided Q2 guidance which indicates that its revenue growth will accelerate. The firm keeps a Buy rating on the shares.|
|BA Boeing price target raised to $115 from $100 at Stifel|
|Stifel increased its price target on Boeing, citing several factors including resumption of 787 deliveries and production work on 787-9, improved margins, and better than expected results from its defense business. The firm keeps a Buy rating on the stock|
|PCLN priceline.com upgraded to Buy from Hold at Deutsche Bank|
|Deutsche Bank upgraded priceline.com (PCLN) on expectations the company's margins will stabilize in the second half of 2013. The firm calls priceline.com one of the best growth stories in Internet and raised its price target for shares to $900 from $715. Deutsche also raised its price target for Expedia (EXPE) shares to $86 from $80 and for TripAdvisor shares to $68 from $60. The firm keeps Buy ratings on both of those names.|
Here are some of the strikes I am looking at:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price||Entry Price|
ZSL is an Ultra-Short silver ETF. I like SAM to squeeze after regaining it’s footing last week, thanks Mikey for pointing this out in the 140s. Will try for PCLN calls if things get irrational but will wait for about an hour before I start looking.
On a side note, lets make sure we keep the chatroom a great environment for everyone and respect discussions in there. If you dont like what someone says or dont agree, and you can;t keep it respectful, just ingore. Thanks! :
Lets have another Great week!!!