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Trade of the Day (SPY) 6.12.2012

Unprofitable:  I lose money on this trade if SPY closes under $129.10 or above $132.90 June 5, 2012.  The most I can lose on this trade is the amount the Spread can be worth $3 minus the price I sold it for $1.00 for a total of $3.00.

Reason I Like This Trade:  I like this trade, because I am selling today’s rally in the stock market, but I am not buying premium.  I make money of the stock market comes back to reality and sells back to the 1300 level.  If it rallies higher, I defined my risk vs reward and will move to the next trade.

UPDATE 6.13.2012  This Spread looked much better this morning, but it is currently worth $1.10.  Since it is not a LONG premium position, I will leave it on for more future potential profits.

UPDATE 6.27.2012  With time against me, I took this Spread off at $.87 and moving to the next trade.  I saw the stock market finding buyers at the $131 level, so I knew it was time to move on

Read more about profitable by www.keeneonthemarket.com

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Halftime Report 6.12.2012

Michael Kors Holdings Inc. (KORS) had a spike this morning after the fashion firm’s earnings beat expectations. Its’ fourth quarter profit smoked 2011’s fourth quarter earnings and came in at $43.6 million, up from $13.6 million.

Zynga Inc. (ZNGA) had a terrible morning, suffering a 9.4% loss after yesterday’s 8% decline.

Harman International Industries was down over 8% mid-day after Apple’s (AAPL) announcement that Siri, their proprietary voice technology, will be placed in new cars.

David Cornes holds a degree in Economics from the University of Montana.

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Movers and Shakers (KOR) 6.12.2012

People can’t seem to get enough of Michael Kors Holdings, a luxury lifestyle brand. KORS posted an 80.3% increase in net sales for the recent quarter and 71 new stores. Wholesale net sales increased 45.5% and royalty revenues are up 26.9% from a year ago. Management put the Q1 EPS between 18 and 20 cents, above analysts’ expectations of 16 cents. Q1 revenue came in between $360-370 million, far beyond analysts’ expectations of $322 million. Profit increases to $43.6 million, or 22 cents a share, from the previous quarter’s $13.6 million, or 10 cents a share. The fourth quarter diluted EPS increased 120% to 22 cents. KORS CEO and Chairman said, “We are pleased with our results for the quarter and the year, as we experienced strong growth in both total revenue and net income. This year we continued executing our key growth strategies, resulting in a 58.3% and 62.1% increase in total revenues for the quarter and year, respectively.”

KORS’ fiscal 2013 earnings expectations are great too. The EPS are expected to be between $1.08 and $1.12. Total revenue is expected to be around $1.7 and $1.8 billion. Analysts expect the full year earnings to be 98 cents on revenues of $1.69 billion.

David Cornes holds a degree in Economics from the University of Montana.

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Morning Rage 6.12.2012

Europe, surprisingly, is currently trading up with the FTSEurofirst rising a cautious .5%. Food & beverage
and the telecom industries are propelling the area .8 and 1.1% respectively.

Greek shares are down 1.6% as the financial world braces for the upcoming wildcard that is the Greek
elections.

Michael Kors has jumped in pre-trade, after beating its Q4 EPS, up over 6%.

One day after ditching Google maps, Apple signs a global mapping deal with TomTom, the terms were
undisclosed.

Crude is down today currently under $83, as are natural gas and gold, silver is staying afloat currently at
a plus .5%.

The NFIB Small business index jumped 2 points in April to 94.5, the highest reading in a year, and holds
in May at a 94.4. Job creating plans and job openings were both up as were capital spending plans.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu

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Doherty at the Close 6.11.2012

Across the pond, the Stoxx Europe slipped less than -0.1% after seeing earlier gains of as much as 1.9%. Spain’s IBEX-35 stock index dropped 0.5% after surging as much as 5.9%. Asian markets gained after the Spain news and also benefited from Chinese economic data that exceeded some expectations. Japan’s Nikkei Stock Average rose 2% and China’s Shanghai Composite gained 1.1%.

In corporate news, Apple’s (AAPL) WWDC went off as expected and if you browse to our article from Friday, exactly as how we predicted. Apple’s shares dropped -1.6% and continue to drop in aftermarket trading after they announced their new product lines. Centene (CNC) tumbled -22% as the Medicaid insurer lowered its 2012 earnings outlook. Finally, Forest Laboratories (FRX) eased -3.5% after lowering its current-year earnings forecast, saying it was hit harder than expected after its depression treatment Lexapro lost patent protection in March.

Energy Solutions (ES) slumped -55%. The provider of nuclear-power services such as plant decommissioning lowered its outlook, citing a slowdown in government and commercial businesses.

Thomas Doherty is a Villanova University student majoring in Finance and Economics. Questions and comments at Thomas@KeeneOnTheMarket.com

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Trade of the Day (FXE) 6.11.2012

Unprofitable:  I lose money on this trade if FXE closes above $125.25 June 15, 2012.  The most I can lose on this trade is the amount the Spread can be worth $1 minus the price I sold it for $.25 for a total of $.75.

Reason I Like This Trade:  I like to sell premium on the weekly options and I will sell the Euro and FXE on any rally.  The best part of this trade that I do not lose money until this Stock .8% to the upside.  So, I can make money on the trade, if the stock is flat, down, or even higher. 

UPDATE 6.13.2012  The FXE is rallying above $125, but I still think it is a sale on any rally.  This Spread is currently only worth $.45, but if it expired right now it would only be worth $.30.  I will leave this trade on until Friday.

UPDATE 6.27.2012  This Spread expired worth $.60 and I took this trade off and moving on to the next trade.

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Halftime Report 6.11.2012

Overnight and into the morning the Euro hovered around the $1.2540 level and is currently trading at $1.2497.

Crude is down over $0.75 cents on the day and trading at $83.34, -0.9%, on slower growth expectations in the U.S.A. and China, as well as gains in the EUR/USD and lower stocks. Gold futures were relatively unchanged on the day, trading at $1591.10, down 30 cents.

Major US stock indices are down on the day. The Dow Jones Industrial Average futures are trading at $1,2431, down 72 points (-.58%), the S & P 500 futures are trading at 1314.75, down 7.25 points (-.41%), and the NASDAQ 100 futures were trading at 2546.50, down 10.5 points (-.68%).

Diamond Foods Inc. (DMND) is trading at $18.67, down $1.49 (-7.39%) after the snack maker was not able to meet today’s earning’s deadline. Volkswagen AG (VLKAY) is trading at $29.79, up 32 cents (1.09%) and is considering taking a stake in Navistar International Group (NAV), a commercial truck and engine maker.

ZaZa Energy Group was a big mover this morning, trading at $4.25, up $1.00 (30.77%) after ending its’ partnership with Hess Corp. (HES) to explore shale formations in Texas and France.

Apple is up on the day at $587.09, up 43% year-to-date on the positive outlook that they will announce new products the annual Worldwide Development Conference. Updated versions of the iPhone, Apple TV, iPads and MacBooks are expected.