After starting the day in the red, the market ramped all day to close in the green. The first positive close on a Monday in 2013. Futures are pointing to a 5 year high open on the S&P as well as nearly opening at an all-time high on the DOW (dont follow that so dont care to be honest). Some huge moves yesterday from GOOG, PCLN, LNKD, and CRM.
Folks continue to look for BETA in this market, and I think folks are using those 4 stocks right now to play this push. I had CRM calls from friday and tweeted/posted in chat the 195 weekly calls. I still like CRM to get over 190 this week so may add some more. Crazie Eddie added more shares to his stockpile and think this is another sign that he has some plans on the way. I will look for some calls at the open.
A nice read about young adults and their debt being at the lowest levels since 2005: http://online.wsj.com/article/SB10001424127887323293704578334761823150672.html?mod=WSJ_hpp_LEFTTopStories
That may sound bearish at first, but then if you think about it, there is a ton of opportunity to put that buying power to work. Obviously the college debt crisis will be a factor in the coming years, as the easy money used to make those loans, have/will create huge obligations that will be defaulted on.
I keep saying I will have a post on the market direction, and hope to have it finished today.
With gold and silver on the back burner and falling, and OIL prices stabilizing, folks will continue to find the best place to put their money to get a return. Like water finiding a tiny crack in a wall, it will find it regardless of how hard or long it takes. I think we see $155 on SPY short term, and will re-evaluate once we get there.
Here are some of the analyst/news pieces today:
(SHLD)
Sears Chairman Lampert discloses purchase of 1.24M shares
Sears Holdings (SHLD) disclosed in a regulatory filing that its Chairman of the Board and CEO Eddie Lampert acquired an aggregate of 1,239,056 shares of Sears common stock from investors for aggregate consideration of approximately $54.96M using personal funds in a private transaction on March 4.
(GOOG)
Google price target raised to $1,000 from $875 at Jefferies
Jefferies increased its price target on Google as the firm believes that several elements of the company's business - including commerce initiatives, YouTube, and mobile CPCs - are gaining momentum. The firm maintains a Buy rating on the shares.
INTC+)
Intel foundry business could reach 6% of revenue by 2017, says JPMorgan
JPMorgan believes that Intel (INTC) is likely to gain Cisco (CSCO) and Brocade (BRCD) as customers for its foundry business next, and could get some business from Apple (AAPL) over the next few years. The firm, however, doesn't expect the business to add more than 12c to Intel's EPS by 2017 and it maintains a Neutral rating on Intel.
VRTX+)
Vertex flu treatment may become large franchise, says William Blair
After Vertex (VRTX) reported data for its flu treatment, William Blair believes that the data appears promising and superior in some ways to Roche's (RHHBY) Tamiflu, a multibillion dollar franchise. The firm doesn't think the Street has assigned any value to Vertex's flu treatment, and it maintains an Outperform rating on the stock.
With the market gapping, will keep it tight at the open. Here are the two positions I may add at open or shortly thereafter:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
SHLD | CALL | $50.42 | March | 0.16 | 0.16 |
CRM | CALL | $195.00 | weekly | 0.21 | 0.19 |
I still love OPEN,SAM, BNNY, and SODA.
Don’t forget LeeMalone’s webinar on Condors at 4:30pm est on Thursday. Link will be up today.
Happy Trading!
- JB