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Morning Rage 9.11.2012

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Amazon.com, Inc. (AMZN | $256.67) is down less than a half of a point in pre-market trading. Amazon recently released the HD Kindle Fire, to be available at the end of November. Amazon is competing in a market where PC makers have continually failed to take the dominant position from Apple, which has more than half of the entire tablet market. Apple, Inc. (AAPL | 662.74), which is up 2.25 points in pre-market trading, gets its strength from having multiple matching devices that focus on simplicity for the user. Everything is fluid for the user, including the shape and style of all the products.

The one company capable defeating Apple in my opinion, Google (GOOG | 700.77), which is up almost 7.00 points in pre-market trading, has yet to stamp their logo on the outside of sleek hardware. I would also expect Apple to continue pushing other companies off of its platform by taking over their products and services. Apple will hold on to its dominance for a long time. However, the market is saturated with new iPhones and I don’t expect all of the iPhone 4 users to drop their somewhat new phones to get an iPhone 5, due to release Wednesday. This release will not be the same for Apple.

International trade data will be released today. The important data for US markets is the trade gap between exports and imports. I can’t be sure where the US is exporting to with Europe in a mess and China’s growth slowing for almost half of a year. The trade balance is said to continue higher with an estimate over -44.3 Billion. This report will be released at 8:30am EST. 

Alex Kalish has a masters in economics from Suffolk University.

Contact: alexk@keeneonthemarket.com

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Morning Rage 8.30.2012

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Google (GOOG | 688.01 [+10.76]) moves higher at opening yesterday and continued to move higher throughout the day. It has reached its highest level since the final quarter of 2007. After the Apple lawsuit results broke Monday, analysts expected GOOG to be hurt by restrictions on Samsung phones. GOOG had a steep decline of about 15 points at the bell on Monday. Those who sold on Monday learned a valuable lesson, as the stock jumped almost ten points from last week and twenty points from Monday.

S&P Futures (1402.00 [-0.50]) trading below fair value as the market continues to be inactive. The S&P (SPY | 1410.49 [+0.08%]) hasn’t closed with a one percent move in either direction since August 3rd.

Traders are waiting for Federal Reserve Chairman Ben Bernanke’s speech Friday in Jackson Hole, WY. Also to be announced this week, U.S. jobless claims estimated to stay within the range of 365k to 375k. Claims have been down since mid-April, by almost 100k. Jobless claims measures the number of individuals who have filed for unemployment insurance for the first time, making it a poorer measure of economic health in an economy with high unemployment since 2009. The report is released at 8:30am EST. 

Alex Kalish has a masters in economics from Suffolk University.

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Trade of the Day (GOOG) 8.28.2012

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GOOG SearchTrade: Selling the $GOOG August Weekly 680-685 Call Spread for $1.50

Risk: $350 per 1 lot

Reward: $150 per 1 lot

Notes: good risk vs rewad that does NOT break thorugh the recent highs of $580

UPDATE 9.11.2012  Not every trade will be a winner, this Spread went to $5 and at least it is over.  One loser every 5 times isnt bad.