“DON’T PANIC, APPLE IS STILL UP 7 PTS!!!” Says Andrew Keene. Apple up another 1.5%
Foot Locker- analysts expect a profit of $.51 a share, up from $.39 for previous year. For the Fiscal year, analysts are expecting earnings of $1.78. Watch the FL’s net income, it has grown the last 3 quarters. Footlocker main competitors are DSW and Shoe Carnival. Finally, don’t forget about the Jeremy Lin effect, haha.
Wendy’s- Quarterly Earnings and Estimates (Q1E)- $.02 Quarterly Revenue(Q1E)- $609M Currently, Wendy’s is trading well above the 50 DMA. The May 2012 $5 Calls are seeing huge Call volume. We will have to wait and listen to the CC and find out how Wendy’s is doing with its interest expense from its short term 500M dollar debt.
By Greg Zimny
Levels to Watch: The most important level is $526.20, which was the recent all -time high, when it made a parabolic move and reversed to the downside.
50DMA-$449.99, 100 DMA -$420.73, 200 DMA- $392.73.
Chart Glance: When stocks like Apple go parabolic, volatility is expected. AAPL is a great stock to trade, because the swings are so big, but always defining risk vs reward is how we trade at KOTM. (See Disclaimer)
Apple’s stock market value passed the $500B mark for the first time Tuesday night. Supposedly, the iPad3 will have retina display, Siri voice recognition, and 4G connection. Yesterday, Apple’s market cap surpassed the entire semi index and is very close to being larger than the retail sector. Also, there is a rumor Apple will come out with a 14-inch MacBook air. Finally, Mercedes-Benz said to integrate ipad/iphone software in A-Class Line.
By Greg Zimny
Another important note, Israeli officials stated today, “They will not warn the US before attacking Iran.” Is that the reason why Crude just caught a bid trading at the $107 level. Furthermore, keep an eye out for Bernanke’s (semi-annual testimony) speech. Should be interesting! Also, Sweden and India reports Q4 GDP numbers. Lastly, the 2nd round of LTRO program just took place and the EUR/USD is currently trading near its session lows at $1.343. Fed QE Spending injections are causing investors to want to own hard assets like Silver and Gold. Silver suprasses the $37 mark as central banks are covering their short positions. Gold is trading at a key resistance $1780 level and continues to be the best inflation hedge for those fearing an inflationary environment,
Wednesdays before the bell earnings:
Costco – Reported earnings and revenue numbers that topped wall street expectations. Earned $.90 a share vs $.79 per share estimates. Revenue reported was $23B or up 10%. 52 week range ($69.5-$88.68). Costco CC is expected to take place sometime around the opening bell today.
Joy-Joy Global should meet or beat profits and sales expectations mainly because it is expanding into China’s International Mining Business. Analysts expect Joy to report $1.35 a share, up from $.96 a year ago. Revenue estimates are $1.15B for the quarter and year end revenue of $5.5B.
Liz Claiborne- Quarterly Earnings and estimates Q4E of $.10 Quarterly Revenue Q4E $477M. As of January 31st, there was a significant short float of 30%. In my opinion, any good news regarding earnings could send the shorts running and the stock flying.
By Greg Zimny
The ECB has lent over $450 Euros since it incorporated LTRO on December 21, 2012. There is speculation that the ECB is going to inject another $470 billion this week. In my opinion, the market has anticipated this move for a while and I think the official announcement should be a non-event. Then again, the trick is always trying to determine what information is priced in to markets and what isn’t. Amyris Inc. (AMRS) is getting crushed since the company reported poor fourth quarter results from its leading drugs. AMRS is down over 11% to $5.72. Apple (AAPL) is expected to announce its iPad 3 on March 7th. AAPL made another new 52 week high of $534.62. Dominos Pizza (DPZ) broke out of its wedge today and shot up 13.50% to $38.02. Pizza stocks were some of the best performing stocks in 2011. ZAGG Inc. (ZAGG) saw a 10% rally today after a .02 earnings beat. I am surprised the stock isn’t up more given that 50% of its shares are sold short.
With Gold and Silver showing continued strength, small beta pin actions plays are starting to show signs of strength. I like Paramount Gold Mining (PZG) on a break of $2.82-$2.84. Very easy risk management as a stop can be placed underneath the descending trend line. A break of $3.15 on heavily volume could send PZG to $4 in a short amount of time.
Andrew Keene analyzes and dissects daily options order flow to compile the most complete “End of Day” Equity Options Report.
- Unusual Options Activity (hand selected by Andrew Keene)
- Top Volatility Increases & Decreases
- Rich and Cheap Implied Volatility vs 30 day Historical
- Large Order Analysis
- Bullish / Bearish Option flow
- Bullish / Bearish Sentiment analysis
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