US stock futures are mixed on Wednesday morning, with the Nasdaq set for a higher open on the heels of Apple (AAPL)’s impressive quarter. The Dow and S&P appear headed for a lower open, following overseas markets lower.
Apple (AAPL) handily topped EPS and revenue estimates last night, rebounding from its first earnings miss in 12 quarters when it last reported. Driving the impressive growth was blockbuster sales of the iPhone 4S. The company didn’t even bother to change the design of the phone in the much-anticipated pre-holiday release, but that didn’t deter 37 million people from buying it.
The stock is up over 7.5% this morning, and now becomes once again the most valuable company, by market cap, in the world, surpassing Exxon Mobil (XOM). With the strong quarter, AAPL also holds cash reserves just shy of $100 billion. Traders will be watching Apple closely today, with the stock often seeing some profit taking following post-earnings gap ups.
Tugging in the other direction this morning is continued anxiety over Greece. Private creditors and European finance ministers are trying to work out a deal on Greek debt, but so far remain far off in negotiations. The March 20 deadline looms as the potential day of a Greek hard, disorderly default.
President Obama delivered an impassioned State of the Union last night, focusing on the economy and reforming tax code to bring jobs back to the United States. The President is at his best when campaigning, and that is exactly what Tuesday’s speech was: the first message in what will be a long campaign season.
Traders will also be eagerly awaiting the Fed rate decision at 2:15 ET. The FOMC is expected to keep rates the same and forgo any new monetary policy, but the possibility always exists that the groundwork will be laid for QE3. Economic data in the US has improved over the past few months, which should discourage the committee from taking any further action at this time. Recently, we have seen the market sell-off following uneventful rate decisions.
Yesterday the markets continued to hold this accelerated uptrend. We now have a clear cut 4 day support area to trade against.
I will use the SPY to outline support levels. The $130.60-130.80 zone is the upper flag support that remains intact. A 60 minute close below this level and we could get the 10-day at $130.26. A daily close below this and the accelerated uptrend comes under pressure. A small spot beyond that is $129.70 but a more major area coming in stands around $129. The 20-day moving average is $128.40
The market continues to reward participants who look for the Daily setups both long and short- each day a new opportunity presents itself.
AAPL-VERY VERY Impressive Quarter on all fronts. Last night it opened around $460 and sold down to as low as $447. Sometimes they try and “sell the news” on AAPL—I would wait the first 15 minutes to get tradable pivots. I did take January 25 calls – I will sell some around the open and then see the composure before closing out if you listened to my radio and took them with me. I will also focus on it on today’s radio.
YHOO– was a basic non-event. Company needs a buyer. That is the only solution.
AMZN– should be interesting today. After 4 down days it found some support. Above $188 perhaps you might get a continuation trade.
GOOG– still in this lower pivot- some made cute money shorting $581.70 yesterday- but you had to be perfect. Still needs time
VMW– acted very well after earnings- the cloud stocks are getting a bit of Mojo Back
FFIV– nice continuation yesterday above the $122 momentum entry.
MSFT– Still needs time to consolidate
INTC– Very impressive three day move into highs. I’d sell some if you are in tier2 plus
BRCM– nice bull flag can see higher prices above $35.$35.50
SNDK– Has a huge upper base- under accumulation/basing since October. Makes believe their numbers will be
GOOD– I would use options if you’re not committed.
X– tried to get going yesterday- I would see if you can add from negative to positive and then thru yesterday’s high of $29.12
AKS– luke warm report but went positive.
Banks- Hang in well but will need to handle some downgrades
GS– was downgraded just as it looked ready to add some momentum. 106 area is support- then a big level to keep constructive would be $103.50ish
JPM– Holding in well could continue if it stays above $37
OIH– Holding above the recent tier2 add on entry- the dip was buyable yesterday- with more time next momentum entry could be $124-$125
SLB– looking good- nice upper flag- above $75 and it can see $77.16 pretty quick
Hal– ended okay and with more time has a pivot level at $37 for higher prices
OXY– hangs tough needs to clear $102-$103
Casinos still look Great
LVS– is leading the charge- nice scoop on the dip yesterday- $48-$50 is a HUGE area that it has not been able to get above and close above- perhaps this Quarter will be enough
WYNN– not leading but has a nice set up. I will look long here with a $119.50-$120 buy price. Next level is not to $128 and then $134
LULU– looks good- Above $62.60-$63 and it see’s new highs—CROX has a gap to be filled above $19.35
SHLD– still looks lower- I have a little short left that I will try and cover $43-$4
BVSN– was a wild ride- but worked out short- I might add below $32 for a move to $27-$29
Disclosures: Scott J, Redler is long SPY DIA XLF WMT LULU CROX LVS DNDN X VXX ** Long AAPL CALLS, Short DIA SHLD BVSN.