What an amazingly strong trading session yesterday, as the market gapped at the open, faded a bit then ramped hard into the close to finish at the high of the day. The SPY closed over $146 and we are now a stone throws away from 4 year highs at $148.11. Still sticking to my $150 on the SPY short term, and would think we may get it before January is out. The $PY chart looks over extended, as do most charts from Monday and Wednesdays market rampage.
I wont be buying puts, but I will be a little more cautious on the call side the next few days. Obviously one of the reasons I like SODA, CALL, and MAKO for January is that they tend to ignore the overall market and can trade up on a down day.
We did have ADP number out this morning that beat expectations by a wide margins, and futures are now flat after being down overnight and this morning. It also looks like Analysts are back to work and catching up as there were many upgrades/downgrades this morning.
Look like Stern Agee and JMP Securities upgraded every financial stock.
PCLN was upgraded at BAC.
MLNX lowered revenue guidance substantially and is down 16% pre-market.
Same Store Sale numbers are out for retailers. The numbers were expected to be weak. Looks like ROST, COST, TGT were some of the winners. M lowered guidance but is hanging in on better DEC #’s.
Here are some of the analyst Upgrades/Downgrades:
priceline.com upgraded to Buy from Neutral at BofA/Merrill
BofA/Merrill upgraded priceline.com (PCLN) due to strong growth in international, expectations for a modest European recovery in 2H 2013, Kayak acquisition opportunities, and potential earnings upside vs. Expedia (EXPE). Price target raised to $770 from $690.
Bank of America upgraded to Market Perform from Underperform at JMP Securities
JMP Securities upgraded several names in the Capital Markets space following the partial fiscal cliff resolution. The firm believes earnings from the large banks should now be better and upgraded shares of Bank of America to Market Perform.
Will be playing a few again today. Still love $SODA and will add any dips. Here are the strikes I am looking at:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price|
Already have BPT 75 calls from yesterday and will add some 80s if it looks like the reversal continues. Stock has a 13%+ divy yield and has been beaten down into submission. If you followed the watchlist and chatroom, you know I have been waiting for this bounce for a few weeks. Think CALL continues its move and will add more 22.50s to my stockpile while they are still .15. CALL will go over $20 and it will allow me to lock some of the 20 calls in. WYNN chart looks very toppy but think it surges over $120 sometime today, already have 120 calls and may look to add more at the open.
As always stay tuned in chat and twitter for updates. In 2013 I will try to give more transparency around exit strategies as most times buying is the easy part, and finding a place to sell is the hard part.
Lets have a great day 2 in 2013!