The SPY fought back from early losses to finish green for a 7th straight day as the index closed above $169 and is very close to breaking all-time highs once again. Who would have thought we would come back so far so fast with all the supposed “headwinds”.
Of course no market rally would be complete without the incessant bantering about the impending collapse of equities amongst all the possible negative catalysts coming our way. Just check marketwatch to confirm that this market is far from done hitting highs this year (Big Headline “PERFECT STORM FOR MARKET” = JOKE: http://www.marketwatch.com/story/the-perfect-storm-2013-09-11?dist=beforebell
Futures have treaded narrowly in the red overnight and this morning while commodities continue to get punished and gold looks set for another large down day. I refuse to chase the move in gold right now with so many other opportunities in the market.
Tons of analyst changes this morning to include a NFLX downgrade and a NFLX Upgrade. PCLN upgrade and PCLN nuetral. MA upgrade, another FB upgrade, and a neutral call on LNKD by C.
Have quite a few positions still and will look to keep it small. Big loser yesterday was playing the RH bounce which didnt materialize. Still like it and will look for an oppty if I see it getting a bid. GOOG looks pretty good here too, and did grab some 910/915 calls for a possible break above 900. LULU reported some nice earnings but weak guidance, and with stocks like that, guidance is the key.
The weekly jobless claim numbers came in at the lowest level since 2006, countering the weak August employment numbers and the previous months downward revisions. Futures remain flat after that number but Gold has added to it’s decline as the PPI index for August came in unchanged, folks were expecting .20% increase.
Here are some of the analyst changes of note for today:
LULU Lululemon shares weak on elevated expectations, says Citigroup |
Citigroup attributes the post-earnings pullback in shares of lululemon to elevated expectations surrounding the company's outlook. Citi says it still likes the stock as a longer-term idea and reiterates a Buy rating on the stock |
QCOM Qualcomm shareholder friendliness could be a catalyst, says Susquehanna |
Susquehanna believes any shareholder friendly actions by Qualcomm at the November analyst day will be a catalyst for the stock. The firm said yesterday's stock buyback signals a shift to a more flexible approach regarding cash return to shareholders which should benefit Qualcomm's multiple. Shares are Positive rated with a $85 price target |
HPQ HP estimates and price target reduced at UBS |
UBS lowered its FY14 EPS estimate to $3.55 from $3.80 ahead of the October 9 analyst meeting on expectations Q3 will impact guidance. The analyst expects Meg Whitman to lower the bar and notes she has backed off on prospects for revenue growth in FY14. The firm expects buybacks to increase substantially and to boost the dividend by 10%. Shares are Neutral rated with a $24 price target, down from $26 |
FB Facebook price target raised to $60 from $42 at CLSA
PCLN priceline.com initiated with a Neutral at Janney Capital |
Target $925 |
NFLX Netflix price target raised to $350 from $325 at Lazard Capital |
Lazard Capital upped its price target for Netflix shares by $25 to $350 after meeting with management and keeps a Buy rating on the stock. The firm believes growth in Netflix's originals is a sign of consumer traction |
PCLN Priceline.com demand trends looking healthy, says Cantor |
Cantor's analysis of worldwide search trends suggests that priceline's Booking.com continues to perform well globally. The firm reports that pricing trends for Booking.com are largely in-line with expectations, and it keeps a $1,050 price target and Buy rating on priceline.com |
MA MasterCard price target raised to $690 from $640 at FBR Capital |
FBR Capital raised its price target for MasterCard to $690 citing increased FY14 earnings estimates and higher confidence in the company's ability to achieve targeted earnings growth following its investor day. The firm reiterates an Outperform rating on the stock |
I continue to love the SINA story and will look to add more OTM Oct calls today. Some more news this morning on partnerships :http://www.marbridgeconsulting.com/marbridgedaily/2013-09-12/article/69145/sina_microblog_etao_partner_on_price_drop_alerts
Z looks clear for breakout after closing above $100. Said it needed to do that to remain bullish and it did, just a day late. Could really get going on $103 break. CMG, SINA, BIDU, and WYNN all broke 52 week highs yesterday and all are below all time highs set years ago. Think all 4 get above those points at sometime in the next few weeks.
Here are the strikes I am looking at for the open, and again will keep it small today:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
SINA | CALL | $110.00 | OCT | 0.59 | 0.59 |
Z | CALL | $105.00 | Weekly | 0.30 | 0.30 |
Sold 103 Z calls yesterday but will look to get back in the lower strike if it gets a bid at the open.
Lets have a great day!
- JB