China ADR's soared today. With $BIDU up 4%, $QIHU up 11%, $BABA up 3.87%, and $SINA up 11%. The ETF that tracks Chinese Large Cap stocks, $FXI, was up over 6% today. Continuing a massive rally over the last two years. Is today's gap a blow off top? Or will China continue to roar higher?
The unexpected ramp higher offered some tremendous gains for those in the call contracts.
$FXI call options were up over 1,000% today.
The DOW crossed 16,000 for the first time and the SPY ramped into all-time highs yesterday only to fade at the trading day's end. TSLA continued to be under pressure and broke under $130 while SCTY also saw some selling and broke under $50 in the afternoon. Some of the pullback in SCTY can be attributed to this Congressional inquiry : http://blogs.barrons.com/techtraderdaily/2013/11/18/barrons-story-on-solarcity-sparks-congressional-inquiry/?mod=yahoobarrons&ru=yahoo .
3-D stocks continued to ramp higher yesterday with my favorite, SSYS, hitting new highs. I locked my $145 calls in, as I'm worried about a pullback on the stocks. I still love the sector, however, and will be jumping back into SSYS when it looks right.
HD reported another strong quarter this morning and the stock is back over its May 213 high while BBY also reported a nice quarter but warned on margins going forward, thus putting the stock down pre-market.
Bitcoin continues to gather some attention as it broke above $600 yesterday, while also hitting $900 last night, though it eventually fell back into the $500s. It's crazy to watch the trading, but that's all I'll do for right now.
I grabbed some ICE January $230 calls and think the stock is poised to break out over $210 this week. The January strikes will give the stock plenty of time to get to $220, and that was my reasoning in getting January instead of December.
I saw some weakness in AAPL and bought some $505 puts near the end of the day. I'll be quick to close them out if I see strength this morning, however. And here's why I bought some: http://stocktwits.com/message/17489521
Not too many analyst changes for today, but here are the ones of note:
|GME GameStop is transition period winner, says RW Baird|
|Baird views GameStop as a transition period winner that benefited from strong sales of GTA V and strong digital and Mobile growth offsetting slower sales of current-gen hardware and software. The firm sees GameStop as a way for investors to play the new console cycle and sees earnings upside in 2014 and beyond. Shares are Outperform rated with a $57 price target|
|CVS Caremark to benefit from healthcare reform, says Jefferies|
|Jefferies says CVS Caremark is well positioned to benefit from healthcare reform after its research indicated the company stands to be the biggest pharmacy benefit manager beneficiary from Medicaid expansion. The firm keeps a Buy rating on CVS with a $71 price target|
|CRM Salesforce.com price target raised to $65 from $54 at Canaccord|
|Canaccord said Salesforce.com's earnings report was solid and positions the stock well for 2014. Salesforce.com is Canaccord's favorite large-cap growth stock for 2014 given growth rates and cash flow margins. Shares are Buy rated|
|GMCR SunTrust cautious ahead of Green Mountain's Q4 report|
|SunTrust is confident Green Mountain will beat its $970M revenue estimate, consensus $964M, but has concerns regarding decelerating K-Cup growth reported by Nielsen and that FY14 guidance will be back-end loaded. The firm said the company shipped 5M brewers in Q1, making comps difficult. Shares are Neutral rated with an $80 price target|
|P Pandora Q3 ad revenue likely to beat expectations, says MKM Partners|
|MKM Partners expects Pandora's Q3 ad revenue to surpass expectations. However, the firm continues to believe that the company's EPS will not exceed $1 in 2015, and it expects the stock to undergo "a meaningful correction" when revenue momentum slows. The firm keeps a Sell rating on the stock|
|JACK Jack in the Box attractively valued, says BofA/Merrill|
|BofA/Merrill expects Jack in the Box to report Q4 EPS of 41c vs. consensus of 39c, on flattish comps. The analyst believes shares are the least expensive in the quick service restaurant universe and maintains its above Street FY14 EPS estimate of $2.20. Shares are Buy rated with a $50 price target|
WHR Whirlpool downgraded to Market Perform from Outperform at Raymond James
|DE Deere likely to guide consensus estimates lower tomorrow, says UBS|
|UBS said the proposed EPA announcement to reduce renewable fuel standards for 2014 is a headwind for ethanol production, combined with tightening credit conditions, and falling farmland values in certain regions, will result in weakening order trends for Deere. The firm expects Deere to guide 2014 consensus estimate lower tomorrow and reiterates its Sell rating and $72 price target|
Yesterday's fade in SHLD provides a nice opportunity to grab some long some calls before earnings (I'll most likely sell all of them before earnings if I do get in, though). I may also try for some more ICE calls with CC this morning, amid news of synergies from the NYX merger.
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price||Entry Price|
Let's have a great day!
Today is setting up to be a great day for those in NFLX calls as the stock is up nearly 40% after reporting a surprise profit and some nice sub numbers. I hold 36 of the 125 weekly calls avgd at .15 and will put a limit order to sell half @ $20 at open. WIll have to check back this weekend to see if thats my biggest bagger, if not it sure will be close.
Worst thing to do is trade like this will happen everyday. Most times holding calls that far out of the money will result in complete loss. Have a strategy and stick with it is key.
I will dabble a little today but will mostly watch the action. Still love BPT, SAM, SINA, SODA, and GOOG.
Still like SHLD but will buy the dip ,SHLD article in WSJ on Kmart, somewhat irrelevant but may give bears some ammo this morning: http://professional.wsj.com/article/SB10001424127887323783704578247762547817102.html?mod=WSJ_business_whatsNews&mg=reno64-wsj
TZOO reported some nice earnings Finally! and will get a relief rally and squeeze to $22+. One of the trades I will make today and will post on my twiter and in chat.
UPB said yesterday AAPL would be off 10% and the market would shake it off. Might be a bigger call then the NFLX ones. Amazing. Tons of PT downgrades on AAPL and some more bad press: Article on decreasing demand for Ipad : http://www.digitimes.com/news/a20130123PD216.html
Here are the analyst changes today:
Netflix price target raised to $120 from $80 at Barclays
Barclays raised Netflix estimates citing the strong Q4 report. Shares are Equal Weight rated.
Netflix price target raised to $160 from $100 at Citigroup
Citigroup raised its estimates and price target materially for Netflix following the company's better than expected Q4 results and outlook. Citi says Netflix's fundamentals are positive and improving and reiterates a Buy rating on the stock.
Netflix upgraded to Market Perform from Underperform at Raymond James
Raymond James upgraded Netflix based on solid sub growth and an improved margin outlook
Netflix upgraded to Neutral from Underperform at Macquarie
Macquarie upgraded Netflix citing the strong Q4 report and guidance. Price target is $120
Netflix upgraded to Overweight from Neutral at JPMorgan
JPMorgan upgraded Netflix and said the company has improved its brand, service, and content, and is back on track towards disrupting traditional TV. Price target raised to $180 form $88. Note the is the fourth upgrade of the day.
Citi cuts Apple price target to $500 from $575
Apple downgraded to Sector Perform from Outperform at Scotia Capital
Scotia downgraded Apple following the Q1 report citing declining gross margins and slowing earnings growth. Price target lowered to $528 from $600.
Apple price target lowered to $575 from $800 at Deutsche Bank
Deutsche Bank says the combination of margin pressure and decelerating iPhone growth indicated in Apple's guidance raises growth concerns. The firm lowered its estimates for the company after the Q1 results and dropped its price target for shares to $575, but its views shares as undervalued at around $460. Deutsche keeps a Buy rating on Apple.
Apple downgraded to Hold from Buy at Jefferies
Jefferies downgraded Apple following the company's Q1 results citing the slowdown in iPhone sales and expectations that margins will continue to fall. The firm dropped its price target for shares to $500 from $800. Note Apple shares were also downgraded this morning at Scotia Capital.
Bed Bath & Beyond upgraded to Outperform from Perform at Oppenheimer
Oppenheimer upgraded Bed Bath & Beyond with a $71 price target citing valuation and expectations the company's trends could rebound meaningfully in coming quarters.
F5 Networks price target raised to $125 from $105 at Citigroup
Citigroup raised its price target for F5 Networks citing improving industry fundamentals and solid company execution after F5's Q1 results. The firm keeps a Buy rating on the name
Autodesk upgraded to Outperform from Sector Perform at RBC Capital
RBC Capital upgraded Autodesk and expects the company to benefit from improving macro trends, increased adoption of suites and Cloud, and margin expansion. Price target raised to $50 from $33.
Here are the strikes I am looking at:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price||Entry Price|
Will also look to continue to add to my SAM position with $155 calls.
Lets have another great trading day!
Seems like the spectre of the worst holiday shopping season since 2008 took hold mid-way through the day yesterday, as the market rolled over. The market recovered slightly but the SPY was still down nearly .50% and is nearing the 50dma of 140.69. I dont think we get there, and think the slight fade in the markets is healthy for the next leg to $150. Jobless claims came in within expectations so should be a non-factor today. Headlines still continue to be about Japan and it's new fiscal policy it will be employing with the new regime.
While looking over charts this morning, I came across the same pattern with most of the China ADR's like SOHU, BIDU, CTRP, SINA, and YOKU. All of those look to be breaking out in a big way and think I may look at some calls on SOHU and possibly SINA. (Grabbed some of the 50s on SINA yesterday @ .25 after it failed to break 46).
Again today there are few analyst changes and looks like folks are on vacation. Here are a few that caught my eye:
(CSTR)Coinstar checks indicate strong RB kiosks rentals, says Northland Securities
Northland's checks indicate RB kiosks rental activity has improved from Q3 lows and that last week was one of the strongest since early July. The firm continues to believe RB rental levels are improving in 2H Q4 and are up 15.9% compared to October. Shares are Outperform rated with a $62 price target.
(DPZ)Domino's Pizza price target raised to $50 from $44 at Oppenheimer
Oppenheimer increased its target on Domino's Pizza as the firm thinks the company could benefit from easing U.S. comps, accelerating international profits, and higher-than-expected share repurchases. The firm maintains an Outperform rating on the stock
I still like the AGS and playing MOS 47.50 and MON 100 calls. SODA continues to be my favorite stock and will be for the foreseeable future. Here are some positions I am looking at for the open:
|Stock Ticker||Call/Put||Strike||Expiration||Closing Price|
Lets have a great trading day!