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Youku Tudou Jumps +17%! Battle for Entertainment at Home and on Mobile Devices: YOKU, NFLX, TWC, AAPL, AMZN, GOOG

YouKu Tudou (YOKU) saw its stock jump +17% higher today, after it delivered a solid quarterly report last night. We had a nice position on the June 23 calls and took the profits in today:

This trade also helped to move my Ecstatic Plays portfolio value up even more! It is now up +150% since I started trading this portfolio in August 2014!

Recently, NFLX was reported to be in conversation to enter China. YOKU is one of the most popular sites that stream TV programs and movies online. Is YOKU in the conversation? Could NFLX partner up with YOKU for its China entry?

TWC is reported to be engaging in talks to be acquired by the European cable provider Altice SA. After the market today, FCC chairman reached out to the CEOs of TWC and CHTR to convey that the agency is not against cable deals. Will this bring CHTR back to the negotiation table?

Now, if TWC is a takeover target, how about NFLX? There certainly has been speculations before. As of the market close today, TWC is valued at $46.8 billion, while NFLX is much cheaper, valued at $37.8 billion.

Who would be possible suitors? AAPL, of couse, has the deepest pocket and can easily buy NFLX with cash. The recent comment from Carl Icahn and today’s new target of $195 from Morgan Stanley has sent AAPL shares on a little run this week. AAPL was up +1% at $131.39 today. With Apple TV out of the picture (or is it?), is purchasing NFLX in the plans?

Then, there’s AMZN! Amazon’s Prime service is already streaming movies and TV programs. But, does AMZN have the financial prowess to gobble up NFLX? Although more unlikely, could GOOG be a player in all of this? It does have YouTube, and it has been working with independent film makers to create original programs.

As I mentioned in my previous article, this space is hot! More mergers are certainly going to happen. NFLX was up slightly again today. AMZN was up over $12 at one point. GOOG was up more than $3. Whichever gets a deal, or even just an interest of a deal, to buy NFLX will likely see a pop in its stock. NFLX, itself, will likely see $650 before anything happens!

Good night and HappyTrading! ™

Netflix Hits New All-Time High! NFLX, OUTR, TWC, CMCSA

NFLX shares popped above $600 last Friday after
the company was reportedly engaging in talks to expand into China.  We jumped into NFLX June calls on Friday morning.  We first played it safe, going with June calls.  But, as NFLX blasted through $610, I realized that there was much more to go.  So, I cashed out the June calls and switched to May 22 weekly calls to make a higher leverage trade:

We patiently sat through the volatility on Monday, with NFLX down in the red most of the morning.  But, those calls were not moving very well, and the premium was disappearing too fast.  So, as NFLX traded higher in the afternoon, I switched again from the May 22 weekly calls to the May 29 weekly calls to give us more time.

This morning, NFLX jumped another $10 and it was the jump that I was looking for.  We cashed out the May 29 calls for some nice overnight profits:

The 3 trades (4 exits) netted us almost $6,000 in 2 days!  They also helped to boost the value of the
Ecstatic Plays Portfolio to a new all-time high!

Lately, it seems like it does not matter if the company is streaming video, renting DVDs, or providing cable, this space is hot!  

Outerwall, Inc (OUTR), whose subsidiary Redbox runs DVD renting kiosks, has been trading very strongly after its recent earnings beat.  This evening, TWC jumped over $2 after the company received a takeover approach from the French telecommunications group Altice SA.  Recently, a possible merger between TWC and CMCSA had just fell apart.  We could see a breakout in TWC tomorrow!

Good night and HappyTrading! ™

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, FDN, MOO, GLD, GS, V, MA, AGU, CF, MON, POT, MOS, NFLX, GOOG, FB, TWTR, YELP

It was a very volatile week! Markets sold off to start the week, but, rallied back to record territory to end the week! It was truly amazing! We have been staying mostly in cash, because it looked like stocks were heading for a pullback. They did pull back. But, once again buyers drove them higher!

We had a nice week and our portfolio is back at all-time high again! Our puts on POST scored a +112% profit. Here are the closed trades for the week:

For the week, the Dow was up +81.45 points; SPX added +6.63 points; Nasdaq gained +44.74 points. Gold had a huge week, rocketing up to above $1225/ounce. Oil (WTI) traded slightly higher, closing just below $60/barrel. At the time of this writing, Asian markets were mixed. Here’s how the US markets closed on Friday:

SPX

SPX added +1.63 points to close at 2122.73. Its daily MAs and MACD turned up.

Nasdaq

Nasdaq slipped 2.5 points to close at 5048.29. Its daily MAs and MACD also crept higher.

On Tuesday morning last week, it really looked like the markets were about to pull back further. But, one hour into the trading, buyers came in and started driving things back up. It was as surprising as it was amazing! For the new week…

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Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, XLE, IGV, FDN, GS, WFC, JPM, PNC, STI, CSCO, RAX, DATA, CYBR, JACK, SHAK

We came into last week sitting on mostly cash, expecting a pullback. On Tuesday and Wednesday, we got that pullback. But, buyers came in on Thursday, and Friday saw a strong rally after an encouraging jobs report!

Except for a couple of trades, we had a very nice week. TSLA and YELP calls gave us nice profits on the long side, and, GOOG puts earlier in the week did well for us on the down side. Here are the closed trades for the week:


For the week, the Dow did surprisingly well, and ended up +167.05 points. But, for SPX and Nasdaq, because the fall was so sharp earlier in the week, the two indices barely recovered. SPX added +7.81 points; Nasdaq still ended down 1.84 points. Gold and oil were basically flat. At the time of this writing, Asian markets were mostly higher, after China once again slashed its interest rates. Let’s see how the US markets closed on Friday:

SPX

On Friday, SPX added +28.1 points to close at 2116.1. Its daily MAs were flat. The MACD moved higher.

Nasdaq

Nasdaq gained +58 points to close at 5003.55. Its daily MAs and MACD flattened.

SPX closed the week in a healthy spot. However, Nasdaq looks much weaker, neutral at best. For the new week…

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Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, FDN, MOO, BTK, GLD, GS, BAC, WFC, JPM, CELG, GILD, BIIB, AMGN, JAZZ, CLVS, MYL

It’s been another wild week. Stocks were very volatile and sold off for most of the week before bouncing on Friday. Even though the bounce on Friday was a solid move, I’m starting to see imminent signs of potential, bigger sell-offs.

We picked up some puts on Monday, and by the end of the week, we went almost completely into cash. Here are the closed trades for the week:

For the week, the Dow was down 56.08 points; SPX fell 9.4 points; Nasdaq lost 86.69 points. Gold was basically flat, trading above $1180/ ounch. Oil got a jump, closing above $59/barrel. At the time of this writing, Asian markets were slightly up. Here’s where the US markets closed on Friday:

SPX

On Friday, SPX added +22.78 points to close at 2108.29. It barely closed above its daily MAs. The MACD flattened.

Nasdaq

Nasdaq gained +63.97 points to close at 5005.39. It closed below its 10-day MA. The MACD went down.

Both SPX and Nasdaq lost grounds last week. If it weren’t for the bounce on Friday, things would look even shakier right now. For the new week…

If you’d like to read the rest of the articles, please subscribe to my Ecstatic Plays product (Click Here).

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, XLE, SOXX, GLD, SKX, TSLA, AAPL, XOM, COP, MA, V, GILD, CELG, AKAM, PNRA, MPC, PSX

On Friday, SPX made a new all-time high at 2120.92 and closed at a new closing high at 2117.69. Nasdaq also pushed higher, closing at 5092.08. MSFT jumped more than +10% on Friday and AMZN vaulted more than +14%. GOOG also helped adding almost +3%.

We had a great week, with my Ecstatic Plays portfolio at a new all-time high value:

Ecstatic Plays is now up +161% in the last 365 days, and up more than +15% for 2015. Here are the closed trades for the week:

TSLA calls produced a nice +89% profit!

My Happy Trades portfolio also did very well! SKX calls were a big win, adding more than $10,000 to the portfolio:

To subscribe to Ecstatic Plays, please click HERE. To subscribe to Happy Trades, please click HERE.

For the week, the Dow was up +253.84 points; SPX added +36.51 points; Nasdaq gained +160.28 points. Gold slumped down to around $1180/ounce, while oil (WTI) traded up to about $57/barrel. At the time of this writing, Asian markets were mixed. Let’s take a look at where the US markets stood after Friday’s close:

SPX

On Friday, SPX added +4.76 points to close at 2117.69. Its daily MAs and MACD moved up.

Nasdaq

Nasdaq gained +36.02 points to close at 5092.08. Its daily MAs and MACD also went higher.

Both SPX and Nasdaq closed on a strong note last week. However, financials were weak and cautious on Greek problems. In addition, semiconductors were down sharply on Thursday and Friday. For the new week…

If you’d like to read the rest of the articles, please subscribe to my Ecstatic Plays product (Click Here).

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, FDN, TLT, GLD, MS, STI, STT, GOOG, AMZN, BRCM, QCOM, FB, YHOO, XLNX, CTXS, LLY, ALTR, EBAY, HAL

The markets were very volatile last week. On Monday, stocks opened higher, but, closed down. On Tuesday, stocks opened lower, but, closed up. On Wednesday, stocks jumped, but, could not break out on Thursday. Friday was met with a steep sell-off.

In my Market Forecast last weekend, I said,

This market has been flirting with the top of this trading range for a while now. It’s difficult to say if it’s got enough fuel to escape from the gravity of this trading range.”

Indeed, it seemed that the market shared and showed my sentiment. Buyers were unwilling to let the market break out with the earnings season just starting. Instead, they shifted their focus to Greece, which is still struggling to come to agreement with the IMF and EU over economic reforms required by its lenders in order to unlock the remaining bailout fund.

Nevertheless, we had another nice week, and my Ecstatic Plays portfolio value continued to push higher:

Here are the closed trades for the week:

To subscribe to Ecstatic Plays, please click HERE.

For the week, the Dow was down 231.35 points; SPX fell 20.88 points; Nasdaq lost 63.77 points. Oil (WTI) had a strong week and traded above $55/barrel. Gold slid a bit, but, still closed above $1200/ounce. At the time of this writing, Asian markets were mixed. Here’s how the US markets closed on Friday:

SPX

SPX fell 23.81 points to close at 2081.18. Its daily MAs flattened and the MACD went down.

Nasdaq

Nasdaq dropped 75.98 points to close at 4931.81. It closed below its daily MAs.

Both market indices seem to be testing their respective initial support levels. For the new week…

If you’d like to read the rest of the articles, please subscribe to my Ecstatic Plays product (Click Here).

NFLX Soars More Than 18%! NFLX, SLB, GS

Yesterday afternoon, NFLX reported strong subscriber additions, sending its stock flying.  Today,
an analyst from FBR slapped on a $900 price target for NFLX.  NFLX shares ended the day up more than +18%.

We didn’t hold any position on NFLX before earnings, because NFLX options were very expensive and it was difficult to gauge how much the stock was going to jump ahead of the report.  But, after seeing the reaction after the report, it was clear that shorts were going to get squeezed.  We did some nice day trades today.  We traded NFLX calls a few times:

We also bought YOKU, which offers online television platform and online video services in China.  These we held before NFLX earnings as there was hardly any premium on the options, and the reward-to-risk ratio was high.  This also turned out well for us, and gave us a nice overnight +65% gain:

My Ecstatic Plays portfolio value continues to make new highs:

The portfolio is now up +158% in the last 356 days and up +13.83% for 2015.  To find out more about my services,
please click HERE.

The market seems to be “breathing” right now.  Buyers were unwilling to push the broader market higher.  It looks like people are waiting to see what next week would bring when more earnings come in.  Also, SPX 2100 could be a psychological barrier.  Energy stocks took a pause today.  After the market, SLB traded higher after giving better-than-expected forecast.  Financials were unstable and traded flat, even though GS reported strong earnings

Good night and
HappyTrading! ™

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, FAS, GLD, FDN, XME, WFC, JPM, GS, BLK, C, PNC, INTC, ASML, STLD, NFLX

Markets had a strong week last week. Stocks rallied higher on Monday, but, faltered and traded in a tight range until Thursday afternoon. Surprisingly, they pushed higher on Friday for a strong weekly close.

We made some nice trades this week and my Ecstatic Plays portfolio value made a new all-time high!

Our CHL calls made a +127% profit and TSLA calls garnered +112.6% gain. Here are the closed trades for the week:

For the week, the Dow was up +294.41 points; SPX added +35.1 points; Nasdaq gained +109.04 points. Gold got a good pop on Monday and ended the week up, trading above $1200/ounce. Oil (WTI) also bounced, closing above $51/barrel. Let’s at a look at the US markets:

SPX

On Friday, SPX added +10.88 points to close at 2102.06. It closed above its daily MAs. Its MACD went up.

Nasdaq

Nasdaq gained +21.41 points to close at 4995.98. Its daily MAs and MACD turned up.

Both indices made advances for the week. They are now, once again, at the top end of the trading range since February. For the new week…

If you’d like to read the rest of the articles, please subscribe to my Ecstatic Plays product (Click Here).

Some Big Movers: EOG, TSLA, PANW, CYBR, TWTR, CLVS, FDX

Stocks have been most positive so far this week.  Energy stocks have bounced, and oil spiked up over the past two days with Brent testing $60/barrel and WTI trading at around $53/barrel.  We trade EOG calls in my
Happy Trades portfolio and booked a +81.78% profit:

TSLA jumped about on Monday as the company said that
it sold over 10,000 of its Model S cars.  We held TSLA calls over the weekend and took a +112.56% profit in my Ecstatic Plays portfolio:

Today, FDX announced that it will buy
TNT Express for $4.8 billion to expand into Europe.  FDX stock jumped +2.7% on the announcement.  Internet security stocks caught buyers today, as PANW went up +2.25% and CYBR popped more than +8%.

TWTR vaulted +4% higher today on takeover rumors.  Biotech stocks more on the rebound today.  CLVS traded up +8% as
the company received a “breakthrough” status for its ovarian cancer drug.  BIIB added almost $5.  ALXN was up more than +3%.  VRTX gained more than +2%.

Stocks were showing strength until the afternoon.  But, big winners mentioned above still kept most of their gains.  The broader market overall is still neutral.  So, we may see some volatile days ahead.  We are still mostly in cash.  Let’s be patient and see if the market shows clearer signals.

Good night and HappyTrading! ™