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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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Market Recap 9.7.2012

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The biggest movers today were on earnings; Lululemon Athletica Inc. and Smith & Wesson Holdings Corp. Both beat analysts projections and gained over 10% on their stock prices.

Lululemon (LULU) reported a net revenue increase of 33% to $282.6 million from $212.3 million in the second quarter fiscal 2011. Gross profit for the quarter increased 28% to 155.8 million and made up 55.1% of net revenue.

Pandora (P) stock was crushed today on an announcement from Apple, Inc. (AAPL), stating plans to develop a competing internet radio product. Apple has been aggressively competing with other companies who have their service on Apple products, like Google Maps. P was down over 16% today ending at $10.47.

Monday, the Bureau of Economic Analysis (BEA) will release its monthly report on international trade. The current global marketplace has been weak; Some of the stronger european economies have begun to struggle and China’s manufacturing has been shrinking for months now. The report on monday is composed of goods and services that are exported and imported into the US, calculating the balance between the two values. The report will primarily affect currencies.

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Big Week for Tech Announcements 9.4.2012

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Amazon will launch their line of new Kindles featuring a new 10 inch Kindle Fire that will have boosted specs and a bigger display.  Amazon also signed a deal with Epix today which will give Amazon Prime members access to more content. 

The weeks crowded announcement schedule should be to Apple’s advantage.  With nearly all of Apple’s major competitors introducing their new flagship devices this week, the individual visibility of these devices could be lost.  Samsung and Sony held their events last week leaving Apple standing alone next week with the announcement for the iPhone 5.  This should give Apple maximum visibility for the new iPhone and the much anticipated iPad mini. Some analysts believe that the new iPad mini could spell the death of other 7 inch tablets produced by Amazon and Google.  Shares of Apple traded up today surging off of early session lows touching a session high of 674.80. Apple l closed up around 9.10.    

However, this week will not be as kind to Google.  In a joint marketing event with Microsoft, Nokia plans on announcing two additions to its line of Lumia smartphones.  Both of these phones will feature Microsoft’s new Windows Phone 8 operating system.  Samsung announced the introduction of their new Windows Phone 8 device last week.  The Samsung announcement in particular is concerning for Google.  Samsung likely introduced the new Windows Phone 8 device in order to better position themselves against any further legal action from Apple.  With the threat of sales bans of android devices looming overhead more manufacturers could switch to operating systems other than Android.   Google shares are trading down today coming off of session lows.  The stock closed down around 4.05.

James Ramelli UIUC graduate in Finance Email: James@keeneonthemarket.com Follow: @Jim_KOTM

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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.