Stocks fell Wednesday after the Federal Reserve's meeting minutes were released. We also have some interesting earnings releases after the bell. Where are stocks headed to as we approach the end of the week?
The OptionMillionaires.com Daily Watchlist: +370% and +504% Today
Every weekday morning a watchlist is published at OptionMillionaires.com with a brief overview of the day as well as a few trades we're looking to get into. Today, those trades are $GLD and $DUST.
The reason? Here's an excerpt of today's watchlist:
The CPI this morning came in at .1%, vs .2% and it’s continuing to show the lack of inflation. I believe this data plus the FOMC minutes this afternoon may become the next catalyst for gold to start heading under $1250, and get ready to test last spring’s lows.
I’ll also be looking to enter a few bearish bets on gold once again, as I think it’ll break under $1250 this week, whereupon selling will then accelerate:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
GLD | PUT | $120.00 | Weekly | 0.21 | 0.25 |
DUST | CALL | $39.00 | Weekly | 0.40 | 0.40 |
The rest of today's watchlist can be found here: https://www.optionmillionaires.com/november-20th-2013-watch-list/
The two possible trades on today's watchlist -- $GLD puts and $DUST calls -- performed incredibly well:
$GLD $120 puts closed up 370 percent.
$DUST $39 calls closed up 504 percent.
The daily watchlist is available to Silver, Gold, Diamond, and Diamond-plus levels at optionmillionaires.com.
TBT, TMV: Inverse Treasury ETFs Breaking Out Again, And Also Slamming The Buy Button Again
I mentioned about a week ago that the inverse Treasury bond ETFs were breaking out of two-month downtrends and that the potential upside for TBT was a more-than-20-percent gain over the coming weeks-to-months ahead. Additional gains then ensued but since November 11th, bonds have been rallying and thus preventing TBT and TMV from continuing to benefit from such increases. Just today, we got our secondary buy signal when TBT and TMV broke above a key trendline. For those already invested in TBT and TMV, this should be considered as an opportunity to pyramid.
Yes, the ETF has already had a sharp rally on intraday trading, so buying now may be the right move before a short term pullback might occur. Remember, though: the longer term trend of the ETF is upward, so don't get caught up in its short-term fluctuations. Happy trading!
~D
November 20th, 2013 Watch List
We have a two-day losing streak on the SPY and it sure looks like the “sky is falling.” I hope you can sense my sarcasm. The bubble talk continues, of course, and it's been helped along by an upgrade of PCLN to conviction buy at GS with a $1500 price target.
I've been saying it for some time: PCLN fundamentals have set the stock up to be $1200-$1300, easy, but $1500? Wow. The stock is up nearly 3 percent pre-market at $1150 and it'll be one to watch today.
3-D stocks came under pressure yesterday and the selling accelerated after 12, finding DDD under $73 and SSYS at $115 after trading at $84 and $134, respectively, the day before. Considering the moves on the stocks in that sector, a pullback like that is not a game-ender by any means. Rather, it's an opportunity to add before they head back above previous highs.
ICE had another upgrade today, and I continue to love the stock heading into the end of the year. It's also been awhile since analysts have weighed in, and I think they'll start bumping targets into the $240-plus range.
The CPI this morning came in at .1%, vs .2% and it's continuing to show the lack of inflation. I believe this data plus the FOMC minutes this afternoon may become the next catalyst for gold to start heading under $1250, and get ready to test last spring's lows.
Here are some of the analyst changes of note for today:
DSW DSW Sell rating reiterated at Brean Capital |
Brean Capital reiterated its Sell rating on DSW ahead of its Q3 earnings report due out on November 26. The firm believes its premium valuation is not justified citing increased competition, commentary from competitors about the difficult environment, and its clearance section remained too Spring/Summer focused throughout the quarter. Price target is $36 |
DKS Dick's Sporting price target raised to $62 from $59 at RW Baird |
Baird raised its price target on Dick's Sporting following solid Q3 results. The firm cited improved traffic. easier comps, and good positioning over the next few quarters. Shares are Outperform rated |
CRM Salesforce.com outlook has improved, says Pacific Crest |
After attending Salesforce.com's conference, Pacific Crest is more confident that the company can reach its 30% year-over-year growth target. The firm thinks the company's platform business and marketing cloud business can each generate $1B in annual revenue in the future. It keeps an Outperform rating on the stock |
HD Home Depot remains a Top Idea, says RW Baird |
Baird said home Depot remains a Top Idea as Q3 earnings reinforced their positive view on the stock. The firm believes the next catalyst will be December's investor meeting and noted comp strength and Pro customer trends remain encouraging. Shares are Outperform rated with a $93 price target |
ICE IntercontinentalExchange price target raised to $235 from $215 at Jefferies |
Jefferies views the pro forma earnings power of the combined IntercontinentalExchange, NYSE company as compelling. The firm raised its price target for ICE shares to $235 and keeps a Buy rating on the stock |
JPM JPMorgan has made progress towards reducing overhang, says Wells Fargo |
After JPMorgan announced a $13B settlement with the U.S. government over improper mortgage allegations, Wells Fargo thinks the bank has significantly reduced the legal/regulatory overhang it's facing. The firm believes the stock's valuation is attractive even if JPMorgan suspends its share buybacks. Wells keeps an Outperform rating on the shares |
GMCR Green Mountain initiated with a Buy at Buckingham |
Buckingham initiated Green Mountain with a $90 price target. The firm views the pullback in shares due to grocery channel share loss as a buying opportunity and said Green Mountain holds competitive advantages and expects brewing machines to double domestic household penetration over the next 5 years. Near-term, the analyst expects the addition of unlicensed store brands to calm concerns, combined with high short interest, to support shares |
TSLA Tesla price target lowered to $120 from $141 at Barclays |
Barclays expects the investigation into Model S fires will likely impact sales by about 10-20% and uses previously highly publicized investigations/recalls as a guide. The firm believes the monetary costs will be manageable but trimmed forecasts, resulting in a reduction in price target to $120 from $141. Shares are Equal Weight rated |
Obviously, I'll be watching PCLN today for any opportunities. I'll also be looking to enter a few bearish bets on gold once again, as I think it'll break under $1250 this week, whereupon selling will then accelerate:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
GLD | PUT | $120.00 | Weekly | 0.21 | 0.25 |
DUST | CALL | $39.00 | Weekly | 0.40 | 0.40 |
Happy Hump Day, and let's have a great day!
- JB
Morning Market Video For November 20, 2013: $SPY, $VXX $SCTY, $AAPl, $TLT AND $TSLA
Futures are flat heading into Wednesday's trading session. Stocks remain the place to be, but are we due for a pullback? Every pullback since the market lows of March 2009 has been a great buying opportunity.