Futures Higher

In After Hours Trading

IPOs on tap Leju Holdings, Quotient, Sabre Corp, Scynexis, Sportsman’s Warehouse Holdings, Vital Therapies and Weibo. Secondaries on deck ATHL BKS SNH.

Earnings out after the close AXP+.03 AF+.15 BGS-.04 BMI-.10 COF+.26 CNS+.05 CCK+.06 EWBC+.05 GOOG-.15 KSU+.06 KMP-.04 NE+.28 SLM-.04 SND +.19 URI+.14.

What’s Happening This Morning

US futures: S&P -1, Dow Jones -16 NDX +2 with fair higher hurting the open. Asia mixed and Europe lower. Copper abd silver higher with gold lower. WTI Crude higher and Brent Oil Futures lower. Natural Gas higher. $ is lower vs Euro, lower vs. Pound and lower vs. Yen. US 10 year Treasury yield +1. Prices as of 7:45 a.m. EST

Earnings Expected

Earnings due after the close AMD ATHN CPHD. No earningf for Friday as markets closed. Earnings due Monday before the open HAL HAS KMB STI.

Rags & Mags: Inside Wall Street

USA Today: Yahoo (YHOO) booted exec paid $58 million. Russian economy slows on capital flight out of country. U.S. economy is picking up after harsh winter.

NY Times: Russian President Putin asserts right to use force. Federal Reserve Chairman Yellen notes that job weakness will slow interest rate increases.

WSJ: Foreign Ministers of Russia, European Union and U.S. met to ease tensions in Ukraine. Large banks are increasing their lending. Costs hit Google (GOOG) earnings.

 

Index ETF Options Volume

Index ETF Options Volume

[Image 1]

The rows in the options matrix are as follows:
  • Curr Vlm = Current Option Volume for today
  • OpVol20 = 20 day Option Volume average
  • % Delta (sorted descending) = Curr Vlm/ OpVol20 * 100
  • Sym = Symbol
  • 20 HV 100HV 252HV = 20 day, 100 Day and 252 Day Historical Volatility
  • Slope = The slope of the historic vol
  • Delta = Change in slope
  • cOptInt = Call Open Interest
  • pOptInt =Put Open Interest
  • cVolum = Call Volume
  • pVolum = Put Volume

Weekly Charts Updated

Each week we highlight charts below of the SP500, Russell 2000, NASDAQ Composite, UUP, EEM, TLT, HYG and CFT. The charts use the 50 day moving average slope indicator. When it is green we like the instrument we are tracking and when it is red we avoid the name/sector/asset class.

All charts are created from www.erlangerchartroom.com and if interested in using this indicator in Chart Room please feel free to send us an email by using the Contact Us section from the home page.

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Advanced Micro Devices (AMD)

Advanced Micro Devices (AMD) will report earnings after the close. Estimates are $0.01 versus $-0.13. The company is in the midst of a turnaround with a new CEO. The price target has some nice upside on a percentage basis. The upper bound far away making this an interesting idea.

Company Information

Company: ADVANCED MICRO DEVICES
Sector: Information Technology
Industry: Semiconductors
Market Cap: $3,167 (Millions)

Targets

Price %Gain
Current Price $4.38
Price Target $4.23 -3.4%
Upper Bound $8.46 93.2%
Lower Bound $2.12 -51.7%

Fundamental Variables

P/E Ratio N/A
Sales Growth 0.1%

Valuation Variables

Past Current Future
Profitability (CFROI) 3.4% -3.8% 1.6%
Growth (in Assets) -11.3% 0.1% 0.0%
Color Legend
Company
Rating
Company
Rank
Excellent Top 10%
Good 11- 30%
Average 31- 70%
Fair 71- 90%
Poor Bottom 10%

Stock data last updated 21-JAN-14.

Data provided by Ativo Research LLC. All information provided “as is” for informational purposes only, not intended for trading purposes or advice. Ativo Research LLC is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing this page, you agree not to redistribute the information found herein.

Gold Moves Back Below $1300

Gold struggled this week as the U.S. economy posted numbers to support a recovery which means interest rates will eventually rise. The only hope for gold is conflict in Ukraine. Worth the read.

Gold

 

Futures Higher

In After Hours Trading

IPOs on tap Moelis & Co, Opus Bank, Quotient, TriVascular Tech. Secondaries on deck XGTI.

 

ADTN +.02 CSX +.03 INTC +.01 IBKR +.06 LLTC +.02 YHOO +.01

What’s Happening This Morning

US futures: S&P +8, Dow Jones +61 NDX +16.50 with fair lower helping the open. Asia and Europe higher. Copper lower with silver lower and gold higher. WTI Crude and Brent Oil Futures higher. Natural Gas higher. $ is lower vs Euro, lower vs. Pound and higher vs. Yen. US 10 year Treasury yield +2. Prices as of 7:55 a.m. EST

Earnings Expected

Earnings due after the close none of note GOOG GOOGL IBM AXP COF KMP KMI SNDK KSU SLM URI NE EPB CCK ALB EWBC PBCT STLD HBHC EGP CATY CNS EFII. Due Thursday morning of note GE PM SLB PEP TSM SAP UNP UNH GS HON DD MS DHR BLK BAX WIT BHI BBT PPG SHW FITB BX CMG DOV ADS MAT KEY COL SNA AN ALSN SON SYNT WSO FHN WBS POOL.

Rags & Mags: Inside Wall Street

USA Today: Rising food prices hurting consumers pcokets. Alibaba rescues Yahoo (YHOO), again.

 

NY Times: New rules set for hazardous cargo on the rails. Petrobras (PBR) stung by scandal and stagnation. Safety concerns raised for e-cigarettes.

WSJ: Growth slows in China. Goldman Sachs (GS) seeks to improve trading.

 

Index ETF Options Volume

Index ETF Options Volume

[Image 1]

The rows in the options matrix are as follows:
  • Curr Vlm = Current Option Volume for today
  • OpVol20 = 20 day Option Volume average
  • % Delta (sorted descending) = Curr Vlm/ OpVol20 * 100
  • Sym = Symbol
  • 20 HV 100HV 252HV = 20 day, 100 Day and 252 Day Historical Volatility
  • Slope = The slope of the historic vol
  • Delta = Change in slope
  • cOptInt = Call Open Interest
  • pOptInt =Put Open Interest
  • cVolum = Call Volume
  • pVolum = Put Volume

Buying Puts To Protect IBM Gain

We have owned IBM since last July, the 13th to be exact. In both August and October we bought puts to protect our position. We will do so again as earnings are expected today after the close. We love the stock but have feel that investors could have a trigger finger.

The good thing about IBM is that investor are rolling out of new tech and into old tech which means stocks like IBM and INTC are being bought by the big guys.

The first time we bought a put on September 18th in front of earnings. The put cost $3.40 and was sold for $9.40 resulting in a gain of $6.00. This reduced our cost by $6. The October put lowered our cost by another $3.55. We did not hedge the January earnings report and the stock fell from $190 to $173 before its recent climb and we realize this was a mistake that could have helped further lower our cost.

The put bought today, May IBM $195 has a pre-market cost $4.45 this morning. We will adjust on the open at 10:00 a.m. EDT and send out an alert.

As a result of these past actions, we are up 9.07%. Remember we can hedge with a put around earnings. Poor price action can lead us to buying a put as well as a prior history of missing on earnings estimates.

 

American Express (AXP)

American Express (AXP) has corrected along with other credit card companies. There is some moderate upside for this stock. Earnings estimates are $1.30 versus $1.15 a year ago this quarter. At $83, we would back up the truck and buy this name.

Company Information

Company: AMERICAN EXPRESS CO
Sector: Financials
Industry: Consumer Finance
Market Cap: $94,012 (Millions)

Targets

Price %Gain
Current Price $87.78
Price Target $98.22 11.9%
Upper Bound $107.06 22.0%
Lower Bound $90.11 2.7%

Fundamental Variables

P/E Ratio 14.3
Sales Growth 8.4%

Valuation Variables

Past Current Future
Profitability (CFROI) 21.9% 26.3% 20.4%
Growth (in Assets) 8.7% 16.3% 16.3%
Color Legend
Company
Rating
Company
Rank
Excellent Top 10%
Good 11- 30%
Average 31- 70%
Fair 71- 90%
Poor Bottom 10%

Stock data last updated 21-JAN-14.

Data provided by Ativo Research LLC. All information provided “as is” for informational purposes only, not intended for trading purposes or advice. Ativo Research LLC is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing this page, you agree not to redistribute the information found herein.

Bank of America Puts Up A Mixed Number

Bank earnings have been mixed so far. Last week J.P. Morgan (JPM) sold off on mixed results and Wells Fargo (WFC) had decent results but sold off with the market. This morning Bank of America (BAC) had mixed results.

Bank of America