Two weeks ago, I penned a post entitled: "$PSMT = Pricedumb" https://www.optionmillionaires.com/psmt-pricedumb/
Today, those puts turned in 200-percent-plus gains.
Two weeks ago, I penned a post entitled: "$PSMT = Pricedumb" https://www.optionmillionaires.com/psmt-pricedumb/
Today, those puts turned in 200-percent-plus gains.
U.S. equities extended their Yellen rally after global stocks jumped aboard the dovish train following the release of the next Fed Chair's prepared U.S. Senate testimony yesterday afternoon. A heavy early dose of firmer productivity, claims dip and trade gap widening didn't leave a lasting imprint, though, ahead of more Yellen-speak at 10AM EST. In Asia, Japan's Nikkei rallied 2.12 percent while the Shanghai Comp rose 0.60 percent, and in Europe the Euro Stoxx 50 is 0.65 percent, though Spain's IBEX and Italy's MIB are lower.
Eurozone and Japan GDP data were also lower than expected, though seen to provide reason for keeping stimulus policies in place. The Dow is 8 points firmer while the S&P gained 2 points and the NASDAQ is 8 points lower after a miss by Cisco, which sank 12 percent in pre-open trade. Also in earnings news: Wal-Mart sank 1.7 percent after an earnings gain but a revenues miss while Kohl's plunged 9 percent after a much-weaker-than-expected report.
What looked to be the start of a possible pullback turned into an uber-bullish day as the market rallied off the lows to close at all-time highs once again, despite some possible bearish news from China and Europe. The SPY finally broke above $177.50, a key area it's been banging up against, leading me to think this is a very bullish condition for the next few weeks.
Macy’s was a big catalyst to the bounce, in my opinion, as most folks were betting on the retailer to continue to struggle. But that wasn't the case and the stock soared, while also pulling other retail stocks and apparel brands with it. Funny that no one is really talking about the positive impact 33-month-low gas prices are having on the economy.
Yet when gas jumps 50 cents every "expert" warns the markets on its impact on consumer spending. Just another reason why I think this market is nowhere near a bubble. And speaking of bubbles: here are my thoughts on the current "bubbliciousness" of the current markets: https://www.optionmillionaires.com/bubbleicous-2013-great-bubble-taper-caper/.
Today, the big event is Fed Chair nominee Janet Yellen's confirmation hearing in front of the Senate Banking Committee, with festivities set to kick off at 10AM EST. I won't be watching, but it could be interesting to see how she handles her first big event, as the next Fed chairperson will need to be able to soothe markets just like Big Ben was able to do.
WMT, KSS, and CSCO all reported weaker earnings and all three are down pre-market. That hasn’t spooked the markets much, though, and futures are in the green. SCTY was upgraded this morning and the stock is up over 6 percent pre-market. If you've been on another planet, then maybe you don’t know how bullish I am on this stock. I think it's $60-plus very soon, $70-plus soon, and $80-plus down the road. SHLD continues to breakout to the upside on low volume and no chatter. That's very bullish, in my opinion, and I hope that bullishness continues.
OPEN was on Cramerica last night so, hopefully, the stock will continue its break into multi-year highs. That stock will be over $90 soon enough.
I'll be looking for a play or two at the open. Will we have a gap fill, followed by a bounce, or will we just have a “Buy the F%$%$^ Rip?”. Looks like the latter to me.
Here are the analyst changes of note for today:
SCTY SolarCity upgraded to Outperform from Neutral at RW Baird |
Baird upgraded SolarCity following the closure of SolarCity LMC Series i, LLC and expects investors to react favorably as expectations are recalibrated. Price target raised to $71 from $50 |
FINL Finish Line upgraded to Buy from Neutral at B. Riley |
Price target raised to $32 from $25.50 |
CSCO Cisco price target lowered to $24 from $29 at Piper Jaffray |
Piper Jaffray lowered its price target for Cisco shares to $24 citing the company's "surprisingly weak" Q1 results and "disappointing" guidance. Piper keeps an Overweight rating on shares, however, saying it believes Cisco is gaining momentum in key growth markets and the stock is relatively inexpensive at current levels |
BA Deutsche says Boeing can still reach deal with union |
Deutsche Bank believes a contract between Boeing and the Local 751 Union is still possible after the union rejected the proposed machinist contract extension through 2024. Deutsche sees a lot of compromise in the proposed contract that Boeing could sign on for to stay in Washington state. The firm has a Buy rating on the stock with a $156 price target |
RVBD Riverbed investors should take some profits, says Oppenheimer |
Oppenheimer believes the chances of Riverbed being sold in the near-term are low, but the firm thinks the company could either cut costs faster or break itself up. Nevertheless the firm recommends that investors in Riverbed take some profits in the near-term after the shares rallied 25%+ over the past week. Oppenheimer keeps a $20 price target and Outperform rating on the stock |
LULU lululemon downgraded at Sterne Agee |
As previously reported, Sterne Agee downgraded lululemon to Underperform from Neutral. The analyst believes recent comments by lululemon's founder is alienating customers, combined with shear problems and the ongoing CEO search, will result in decelerating 2014 same-store-sales trends in 2014. Price target lowered to $56 |
PCYC Pharmacyclics removed from the Best Ideas List at Wedbush |
Wedbush removed Pharmacyclics from the Best Ideas List following IMBRUVICA approval in Mantle Cell Lymphoma. The firm sees high off-label expectations and temporary patient access headwinds limiting shares near-term. The analyst continues to rates shares an Outperform with a $165 price target |
AAPL Apple estimates raised at Canaccord |
Canaccord's carrier survey indicates iPhone 5s sales are very strong with improving supply levels, steady iPhone 5c sales, strong sales for the new iPad Air, but supply constraints for the new iPad mini. The firm raised estimates and reiterated its Buy rating and $580 price target |
I never grabbed my ATK position so I'll be looking for it this morning as well as possibly trying for a GOOG all-time high break into tomorrow:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
GOOG | CALL | $1,055.00 | Weekly | 0.45 | 0.30 |
ATK | CALL | $125.00 | December | 0.65 | 0.50 |
Let's have a great day!
- JB
Think Printing Money is Hard? Just Buy It.
Just Buy It. And Then Buy It Again.
Yesterday You Said Tomorrow. Just Buy It.
If No One Thinks You Can, Then You Have To. Just Buy It.
Don't Run Away From Challenges. Just Print Over Them.
Giving Up Is Simply Not An Option.
Every Damn Day. Just BUY IT.
Just buy it. Federal Reserve Chairman Ben Bernanke has spent the better part of the last five years getting investors to buy it. Buy those risky assets, the same ones that have collapsed over 50 percent in 2000 and 2008.
Just buy it? He made stocks the place to be with his zero interest rate policy and low bond yields. There is no other game in town. Bernanke's made it clear: he's forcing everyone who wants to make investment income into risky assets.
Been burned twice before in the stock market? Just Buy It.
80 years old and low interest rates have you trying to find a job? Just Buy It.
Your Landscaper is giving YOU investment advice? Just Buy It.
Your Friend hasn't paid his mortgage in 4 years? Just Buy It.
The Dude Making Your Tacos at Chipotle Mexican Grill has a Bigger 401k Then You? Just Buy It.
Stocks sit at record levels. Bonds yields remain suppressed. Inflation remains low. Give the man credit. He's done what he set out to do. He really did it.
We've done it here at optionmillionaires.com as well. We saw this coming from a mile away. Here are some of our posts over the years:
https://www.optionmillionaires.com/2013/as-long-as-these-pullbacks-have-a-name-stocks-head-higher/
https://www.optionmillionaires.com/2013/twenty-one/
https://www.optionmillionaires.com/2013/the-great-taper/
https://www.optionmillionaires.com/2012/qe-to-infinity-and-beyond/
https://www.optionmillionaires.com/2012/qe-infinite-or-bust/
https://www.optionmillionaires.com/2012/the-fix-is-in/
https://www.optionmillionaires.com/2012/btfd/
Seemingly everyone in 2012 and 2013 was eager to call a top in the market. So many headwinds, so little time. Yet we remained steadfast in our view that the massive asset inflation scheme orchestrated by the Federal Reserve and other central banks would lead to much higher stock prices, and here we are. Every dip since the lows in 2009 has been a dynamite buying opportunity, and if I had a nickel for every time I said that via audio in the optionmillionaires chat room...
Just Buy It.