Earnings jitters took hold last week as the market tumbled friday, and some stocks were creamed like GOOG, AAPL. LNKD, PCLN, and other favorites. Despite all this, the market was up fractionally last week. This week should prove very interesting with a tremendous amount of earning reports on deck. If the trend of lowered outlooks and misses continues, the market could continue its fade here. I like the SPY to find a bottom near $142 and then work its way higher. I am still a short term bull, but long term near. SPY 50dma is 143.20 so that could provide support.
World markets are mixed to mostly higher this morning and Stock Futures are slightly higher. CAT reported earnings this morning and reduced its 2012 target, after already lowering is 2015 outlook last month. Some look to CAT for guidance on the world economy so if CAT is lower guidance, that usually is not a good thing.
Some earnings after the bell: WDC Western Digital , YHOO Yahoo, and TXN Texas Instruments . UPB had his week ahead video and spoke about as many of the earnings plays as possible. Keep checking the blog page for the uploaded video(It's not up yet).
Here are the potential positions I am looking to get today:
|Stock||Call/Put||Strike||Expiration||Closing Price||Entry Price|
|WYNN||Call||$120||Oct||.76 x .91?||0.50|
I always like OPEN and there were rumors of YHOO being interested in them. OPEN has sold from the $50s in Sept and I think this catalyst should help regain it's footing. WDC reports after the bell so risky calls, but again a stock that could regain it's footing. $NFLX reports tomorrow after the bell, i am one of the few folks who still like the story so play at your own risk!
CALL was a great play friday with some huge earnings, and I think it continues today. Already have the NOV $25s but will look for more. WYNN chart said $120 last week, but stock did not cooperate. $120 calls look pricey so will wait for a hopeful pullback to enter at .50 and below.
Stay tuned to chat for possible entry and exits. I will also post on private twitter account (DIAMOND)
Lets have a great start to the week!!