It's Friday and with the potential catastrophe the media has been hyping with the shutdown of the government stocks have hung in there. Today they are poised for a boring, flat open. The $SPY has been in a $2 range all week and I don't think that is going to change heading into the weekend. I see a lot of talk about some of these bubbles starting to burst, as $TSLA finally pulled back this week. The top callers for $TSLA have been wrong to the tune of 400%, and the top callers on $SPY have been wrong for over 4 years. This embarrassing government bickering will end and come November stocks will be pushing through new all time highs.
Next week earnings season kicks off! AA on Tuesday, JPM, WFC on Friday. The following week the likes of GOOG report. This upcoming earnings season will test the market, the prices of some of these stocks, and whether or not recent gains are sustainable.
When the FED finally does start to taper I think they will do it slow enough to keep risk assets from falling. I think the can kicking thats been going on will last a few more years. When this sovereign debt inspired bubble finally does pop, it will be from much higher prices. I think its healthy for people to be calling for a top here, and for more downside. The market has been down 8 of the last 9 trading days, yet we are still mere percentage points away from fresh all time highs.
$ANGI has been clobbered the last few trading sessions. It was a fun ride up to $25, but a devastating drop to $17.30. I feel like Bill Ackman still sticking to my guns on $ANGI. I think its a $30+ stock. The good thing about my trades on $ANGI is I did not risk a whole lot, and they are OTM calls. Ackman shorted $HLF and is down some $400 million before deciding to go the OTM option route. With $ANGI we are below $20 support but with the way it trades, and the 80% bearish sentiment, seemingly everyone saying its a $5 stock, look for a bounce heading into the weekend.
$FB Facebook price target raised to $58 from $50 at Sterne Agee
Sterne Agee raised its estimates on Facebook to reflect monetization of Instagram and better-than-expected ongoing trends. The firm keeps a Buy rating on the shares
$BA Boeing shares should be bought on weakness, says Sterne Agee
After Boeing delivered two more planes than Sterne Agee had expected in Q3, the firm thinks the stock will advance 40% within the next 12-18 months. The firm keeps a Buy rating on the shares.
$HOG Harley-Davidson price target raised to $74 from $65 at BMO Capital
BMO Capital increased its price target on Harley-Davidson as the firm thinks that consumers' reaction to the new 2014 Harley-Davidson motorcycles has been very positive. The firm raised its estimates slightly and keeps an Outperform rating on the stock.
$WYNN Wynn Resorts downgraded to Neutral from Outperform at Credit Suisse
Credit Suisse downgraded Wynn Resorts due to rich valuation. Price target raised to $160 from $149
$SFLY Shutterfly Q3 results should be positive, says Cantor
Cantor reports that the amount of discounts offered by Shutterfly has not increased this quarter from previous quarters, while its paid click volume jumped more than 150% year-over-year in July and August. The firm thinks these metrics bode well for the company's Q3 results, and it continues to expect the results to come in at the high end of the company's guidance. Cantor keeps a Buy rating on the stock
$WFM Whole Foods moving further ahead of competition, says Wells Fargo
After meeting with Whole Foods' CEO, Wells Fargo is more confident that the company is moving further ahead of its competition, driven by retail/digital innovation, localization, quality standards, and better value. The firm reports that the company's new stores are exceeding expectations, and it keeps an Outperform rating on the stock
$OPEN is trading higher on a price upgrade. $FB the analysts continue to come in on this with higher price tgt's. It's feeling a lot like some recent high flyers that attracted numerous price upgrades along the way. I think there is more upside as the company is still figuring out how to turn their company into a revenue making machine. Also social media, especially with the upcoming twitter ipo, has been hot. $FB will be over $60 in a few months.
Trades I am looking at today:
glutton for punishment $ANGI $20 octcalls $.20
$FB OCT 11 $50 calls $.80
$AAPL OCT 11 $505 calls $1.00