October 24th, 2014 Watch List

Another massive rally in equities yesterday, with the DOW up 300 points at times, and the S&P testing the 50 day moving average - an area that we are coming up to rather quickly. Ebola headlines put a damper on the rally, and equities endured another afternoon fade, although indexes closed up over 1%.

The Small caps, Nasdaq, S&P, and the DOW are all getting very close to breaking back above both the 50 & 200 day moving averages. If that happens, I will be quite a bit more aggressive on the call side, as I think the action we saw yesterday, with the looks of short squeezes and stock chasing, will continue.

I wrote a piece on the Earnings Playbook Here : https://www.optionmillionaires.com/update-earnings-trades-week/ - we are looking to possibly roll-out even more detailed pieces like that, and any feedback would go a long way in determining if that happens. A quick email to optionmillionaires@gmail.com or a comment at the bottom of that post would be appreciated. Thanks in advance for your time.

Mellanox reported strong earnings , raised it's guidance for the first time in 7 quarters, yet it was not enough for some investors, who sold the stock at open. They are having an analyst day today, so hopefully it gets back on track. I still believe in the stock/company so did not make sense for me to sell calls for a loss. Hopefully they come back with a vengeance over the next week or two.

Amazon results came in much worse then even the most negative analysts were expecting. I saw the report, and tried to glean any possible positives and it was impossible. The only thing you can say about Amazon, is they continue to grow 20% on a year over year basis. But thats been the story for a long time already. I didn’t think it would break under $290 for sometime, but this report sure doesn’t add confidence. Something material will have to change, and the stock will likely be stuck in the doldrums till next earnings report.

Here is what UPB is reading this morning : https://www.optionmillionaires.com/friday-morning-reads-ebola-everywhere-edition-102414/

Here are the analyst changes of note for today:

Deckers Outdoor guidance likely conservative, says Jefferies

Jefferies notes that while Deckers Outdoor raised its year guidance by less than the magnitude of the Q2 upside, the outlook is likely conservative. The firm sees a favorable risk/reward for shares and reiterates a Buy rating on the name with a $130 price target

Amazon.com price target lowered to $307 from $340 at JPMorgan

JPMorgan lowered its price target for Amazon.com shares to $307 citing the company's "disappointing" Q3 results and outlook, but it says the numbers are not as bad as they seem given the one-time write-down for the Fire Phone. The firm expects shares to remain under pressure and keeps a Neutral rating on the name

Pandora story remains on track, says Piper Jaffray

Piper Jaffray believes Pandora's story remains on track despite moderating listenership growth. The firm expects listenership to improve as the connected car gains traction. It reiterates an Overweight rating on Pandora with a $37 price target following the company's Q3 result

Celgene price target raised to $120 from $105 at Cantor

Cantor increased its price target on Celgene after the company reported stronger than expected Q3 results. The firm believes that the company's OTEZLA drug generated strong sales in Q3, and it is upbeat on the company's pipeline. It keeps a Buy rating on the stock

Celgene price target raised to $119 from $99.50 at Citigroup

Citigroup raised its price target for Celgene shares to $119 following the company's Q3 results on expectations Revlimid will continue to drive growth. It keeps a Buy rating on the stock

Celgene price target raised to $117 from $104 at JMP Securities

After Celgene reported stronger than expected Q3 results and raised its guidance, JMP Securities calls the company's performance "solid" but "unexceptional." The firm thinks the company has a number of potential upcoming positive catalysts, and it reiterates an Outperform rating on the shares

Amazon.com sell-off creates buying opportunity, says Bernstein

After Amazon.com reported weaker than expected results, Bernstein believes that the deceleration of the company's revenue from media will hurt its margins in 2015. Nevertheless, the firm expects strong third party sales, favorable mix shift of products other than media, and lower shipping costs to offset weak North American media sales

Amazon.com price target lowered to $350 from $420 at Piper Jaffray

Piper Jaffray analyst Gene Munster lowered his price target for Amazon.com shares to $350 from $420 after the company's revenue guidance came in 7% below the Street. Munster thinks Amazon shares will be range-bound until better leverage can be shown but keeps an Overweight rating on the name. The stock is trading down 10%, or $32.18, to $281 in pre-market trading following its September quarter earnings report

Pandora reported solid results, says Oppenheimer

Oppenheimer believes that Pandora reported solid Q3 results. However, the firm cut its price target on the name to $32 from $43 to reflect lower valuations for high-growth Internet stocks. The firm also expects investors to view the stock's risk as elevated until clarity on royalties increase. The firm keeps an Outperform rating on the shares

Jazz Pharmaceuticals price target raised to $201 from $163 at Canaccord

Canaccord raised its price target on Jazz Pharmaceuticals to $201 form $163 ahead of the company's Q3 results. The firm expects the company to beat on both earnings and revenues, mainly driven by Xyrem growth. Canaccord sees momentum continuing and multiple expansion and reiterates its Buy rating on shares of Jazz

My current positions:

Trade log 10-24

The exchanges look to be catching fire again, with NDAQ reporting a huge Q and saying trading volumes up 30% YOY. I may try and play some CME calls at the open, while also looking to add some NFLX calls for next week(think $400+ is coming again).

At the same time, will be watching BIDU for put opportunities on Market weakness:

Stock Ticker




Closing Price

Possible Entry Price





.25 x .45





October wkly(31)

.47 x .55


Lets have a great day, and see you Sunday for the Week Ahead! : https://www.optionmillionaires.com/live-event-classes-jtv/

- JB

JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

More Posts by JB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply