We start off December with an 8-week green streak on the S&P 500, the longest such streak in 10 years. Futures are somewhat flat and the chatter this morning seems to be revolving around sales and traffic over the weekend, as well as Cyber Monday and the AMZN 30-minute delivery chopper. The latter seems to be gaining some attention and discussion on social media and an upgrade this morning on the stock by Goldman has it nearing the $400 mark. Every day, week, and month since the $100 price point folks have questioned the run, citing zero profits etc. What will they say at $450? Maybe we'll find out sooner rather then later.
I had issues putting together my Week Ahead webinar, but UPB did a nice pre-market video here: https://www.optionmillionaires.com/upb-morning-market-video-7/
Also, gold is showing weakness again this morning and I'll watch for the $1230 break, as I think a fall below that mark will send it to $1180 in short order. Bitcoin broke above $1200 last week but has faded down to the $1k level. Expect it to trade in a wide volatile range for quite some time. Bitcoin is pretty much the definition of speculation and it's going to be very hard to put a value on it until it's adopted by greater numbers and also widely accepted. More on Bitcoin later today.
Tons of analyst changes today and here are some of note:
BAC Twitter initiated with an Underperform at BofA/Merrill |
As previously reported, BofA/Merrill initiated Twitter with an Underperform and $36 price target. The firm is constructive on Twitter's long-term fundamentals but views valuation as unattractive and said shares discount 1B users and a $22 ARPU by 2028, up from $3 today. |
AAPL Apple had 'great' Black Friday weekend, says Jefferies |
Jefferies said its channel checks indicated Apple had a "great" Black Friday weekend. The firm believes the iPad Air and iPhone 5S are tracking better than previous launches and that Apple's December quarter is tracking at the high end of guidance. Jefferies reiterates a Buy rating on the Apple with a $600 price target |
AAPL Apple price target raised to $625 from $575 at Deutsche Bank |
Deutsche Bank raised its price target for Apple shares to $625 after its Black Friday channel checks brought increased confidence in its near-term estimates. The firm believes its December quarter estimates could prove conservative if Apple sustains its current momentum through the end of the year |
JPM JPMorgan reiterates Overweight on Facebook after pullback |
JPMorgan attributes the recent weakness in shares of Facebook to concerns around slowing ad load increases and teen engagement along with the broader sell-off of outperformers. The firm says Facebook is slowing ad load increases to optimize the user experience, which it views as right move for the long-term. Further, JPMorgan thinks the decrease in daily usage is limited to a small portion of younger teens. The firm reiterates an Overweigh rating on shares of Facebook with a $62 price target |
VMW VMware initiated with an Overweight at Atlantic Equities |
Target $105 |
DECK Deckers Outdoor price target raised to $86 from $80 at Piper Jaffray |
Piper Jaffray raised its price target for Deckers Outdoor to $86 after its Black Friday channel checks indicated strong demand for the UGG brand. Piper says Decekers remains its top mid-cap pick for 2013 and keeps an Overweight rating on the stock |
AMZN Amazon.com price target raised to $450 from $400 at Goldman |
Goldman said Amazon.com is the biggest beneficiary of accelerating eCommerce growth and is well positioned to take share in new verticals and geographies. Shares are Buy rated |
MNST Monster Beverage upgraded to Overweight from Neutral at JPMorgan |
JPMorgan upgraded Monster Beverage on expectations the company's earnings growth will accelerate in 2013. The firm raised its price target for shares to $74 from $70 |
I love the TRIP chart and will look to add to my DEC 100 calls, as I think the stock ramps into the 90’s in short order. There was a follow-up piece on SCTY this weekend in Barron's and the stock is down a bit pre-market. I think the momentum continues after breaking above $50 last week and I'll be trying for a couple calls.
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
TRIP | CALL | $100.00 | December | 0.40 | 0.35 |
SCTY | CALL | $56.40 | Weekly | 0.60 | 0.45 |
Let's have a great start to December!
- JB