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Markets Take a Stall Despite Good Earnings Numbers: SPX, Nasdaq, TSLA, IBM, SNDK, YHOO, JPM, WFC, C, GS, BAC, XLNX, EBAY, INTC

Markets have been consolidating during the past couple of trading sessions.  After last week’s huge rise, buyers seem to be on a break.  Financials have reported strong quarters, including JPM, WFC, C, GS, and BAC.  Yesterday, YHOO reported earnings numbers that missed the estimates, however, bullish view remained and YHOO stock popped more than +10%.  Today, after the market, IBM, SNDK, and XLNX delivered strong numbers.  IBM traded up +2.6%; SNDK jumped +6.66%; XLNX gained +3.72%.

However, there were downside news as well.  EBAY dropped 5.93% after giving disappointing guidance.  INTC fell 3.48% after cutting its revenue forecast.  TSLA has had some wild swings in the past couple of days.  Yesterday, Goldman Sachs cut its price target to $84 on TSLA, sending TSLA down $18.  Today, another analysts raised her target to $200, from $90; TSLA shares bounced more than $10.  These wild swings gave some good trading opportunities.  We traded some calls yesterday in the Trading Room catching a nice +156% profit in just 90 minutes:
Happy Trading July 16, 2013 7:57 AM
TSLA
big drop!!

Ecstatic Plays July 16, 2013 12:02 PM
TSLA
wow, down almost $20. took 114 puts at $3 and sold at $7.7 in 90 minutes!! Looks like it’ll test $100 this week…

The Dow up +18.67 points; SPX added +4.65 points; Nasdaq gained +11.5 points.  Sectors were mixed, but, little changed.

SPX

SPX added +4.65 points to close at 1680.91.  Its daily MAs and MACD were little changed.

Nasdaq

Nasdaq gained +11.5 points to close at 3610.  Its daily MAs and MACD crept higher.

The markets have risen too fast and now some consolidation is needed.  Nevertheless, there are still lots of interesting actions.  After all, it is the earnings season.  EBAY and INTC’s cautious forecast may just be offset by better numbers from IBM and SNDK.  Tomorrow, we’ll hear from GOOG and MSFT.  However, we still might not see the indices move until next week.  We haven’t done much so far this week.  We did cash out on some nice trades on Monday:

  • 08:39 | Ecstatic Plays HLF ($52.30) Sold to Close 07C50 Jul 50 calls, at $2.70 +64%
  • 07:30 | Ecstatic Plays GMCR ($70.00) Sold to Close 07P70 Jul 70 calls, at $1.63 -32%
  • 06:49 | Ecstatic Plays AAPL ($428.20) Sold to Close 07C430 Jul 430 calls, at $4.00 +29%
  • 06:42 | HappyTrading VRTX ($87.20) Sold to Close 07C82.5 Jul 83 calls, at $5.36 +85%
  • 06:40 | HappyTrading IOC ($76.30) Sold to Close 07C70 Jul 70 calls, at $7.00 +150%

(to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video)

We are now mostly in cash.  Let’s see if GOOG and MSFT can induce a broader market action.

Good night and HappyTrading! ™

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