Welcome to the last week of August! Last week stocks zig zagged around and closed just a little higher for the week. The 3 hour halt of trading was met with more buying of stocks. That makes perfect sense in this centrally planned market when stocks rise when they should fall.
Think about it for a second. What is the value of any stock if you can't sell it? If you can't sell something what is its value? For 3 hours last week $AAPL was worth ZERO. $GOOG was worth ZERO. You couldn't sell them. Yet for some reason when the market reopened traders couldn't buy enough of them and stock closed at their highs. Remarkable! They shoudl schedule market halts throughout the year, it seems a lack of confidence in the system only makes trader/investors want to buy more. Again it makes perfect sense for the mentally unstable. For the rest of us we just have to understand what we are up against in this market. The central banks and powers that be run the show.
Last week we have some great earnings trades, I highlighted two of them last Sunday night. $ANF and $ARO. https://www.optionmillionaires.com/2013/anf-aro-back-to-the-future/
Last night I hosted the week ahead. Here is the link to that video: https://www.optionmillionaires.com/2013/the-week-ahead-live-video-talked-about-tif-ges-spy-jcp-nflx-tlt-and-more/
Here are my thoughts:
Where is the market headed this week? https://www.optionmillionaires.com/2013/spy-where-is-the-market-headed-this-week/
Is This Retailer Ready To Tumble? https://www.optionmillionaires.com/2013/is-this-retailer-ready-to-tumble/
Where Is This Stock Headed Post Earnings? – Some Unusual Option Action On Friday https://www.optionmillionaires.com/2013/where-is-this-stock-headed-post-earnings-some-unusual-option-action-on-friday/
Jimmybob will be back on Wednesday, that should be good for the market this week!
We have earnings tomorrow before the bell from $TIF. I am leaning for a big move lower, there was heavy and unusual option activity on Friday for the stock. It should be interesting.
Analyst talk:
$MSFT Microsoft price target raised to $37 from $34 at BMO Capital
BMO Capital increased its price target on Microsoft after the company announced the resignation of CEO Steve Ballmer, as the firm thinks a new CEO could significantly boost the company. However, the firm keeps a Market Perform rating on the stock based on valuation
$BIG Big Lots upgraded at JPMorgan
As previously reported, JPMorgan upgraded Big Lots to Neutral from Underweight. The firm upgraded shares due to balanced risk/reward. Price target is $32.25
$TIVO TiVo is worth more than current valuation, says Brean Capital
Brean Capital believes TiVo is worth more than its current valuation citing its strong value proposition. its broad customer base, and a growing market opportunity. The firm notes the legal overhang as well as its uncertain relationship with its largest customer but reiterates its Buy rating and $14 price targe
$EXPR Express business model strongest among retailers, says Brean Capital
Brean Capital believes the Express business model is among the strongest in retailing and called the risk/reward impressive. The firm remains buyers ahead of earnings on Wednesday despite reducing estimates to reflect the promotional atmosphere. Shares remain Buy rated with a $28 price targe
$QIHU Qihoo 360 price target raised to $100 from $55 at Stifel
Stifel increased its price target on Qihoo after the company delivered beat and raise results. The firm thinks that the company's search revenue growth alone could double the size of the company and it keeps a Buy rating on the shares
$FL Foot Locker outlook still positive, says Piper Jaffray
After Foot Locker reported weaker than expected Q2 results, Piper thinks the stock's valuation is attractive, and believes the shares can return at least 20% over the next 12 months. The firm keeps an Overweight rating on the shares
Trades I am looking at today:
$PCLN $980 weekly calls $1.50 - I think this is the week the stock gets with striking range of $1,000
$EXPR $17.5 weekly puts $.60 - Break of support last week could be sign of more weakness to come
$CPB $45 September puts $.45 - Reports earnings Thursday before the opening bell