INTU-Intuit Inc Earnings Report | Stocks to Trade 11-20-17

INTU-Intuit Inc Earnings Report |

INTU-Intuit Inc Earnings Report | Stocks to Trade 11-20-17

Can Intuit’s (INTU) Q1 Earnings Benefit From Quickbooks?

Intuit Inc. (INTU) is set to report first-quarter fiscal 2018 results on Nov 20. The company’s revenues are likely to benefit from increasing adoption of its QuickBooks and TurboTax products. However, escalating expenses due to increased investments may hurt profitability.

QuickBooks to Drive Revenues

The company’s QuickBooks product offers financial and business management online services and desktop software to small businesses. The company has been witnessing tremendous growth in the QuickBooks online subscriber base, which is driving its Small Business Group segment’s revenues. The business and financial software space in which Intuit operates has huge growth opportunities.

Intuit Becomes Latest Technology Company to Offer Direct Lending

Intuit Inc., the maker of tax-preparation and accounting software, will start lending directly to smaller businesses as it becomes the latest tech company to offer credit to firms.

The roughly 7 million businesses that use Intuit’s QuickBooks accounting software may be eligible to borrow up to $35,000 for as long as six months, the Mountain View, California-based company said Tuesday. Annualized interest rates would range from 6 to 18 percent, and loans would be available to borrowers in 43 states.

INTU-Intuit Inc 11-20-17 Before Earnings

INTU-Intuit Inc 11-20-17 Before Earnings

Today's Trading Lesson

How Technology and Volume Affected Tape Reading NYSE Stocks in 2007

There was an edge day trading NYSE stocks prior to 2007. Tape reading was easier, there was far less electronic trading. The floor of the New York Stock Exchange was dominated by “specialists.”

A specialist is in charge of making a “fair and orderly market.” This meant they were in control of the price action on the NYSE. The floor was a giant community of specialists, floor brokers, clerks and institutional players. A fascinating book written by Charles Gasparino about this history and how the floor operated called King of the Club is a must-read for any student of the stock market.

If you wanted good fills on your price there were two methods to execute a trade.

  1. Physically speak to a specialist (which meant you needed to be a part of the community)
  2. Place an order from off the floor using a Super-Dot system.

In scenario #1 the greater the potential order, the better the fills, or at the very least the more attention you received. You see a specialist would make money on this “order flow.” The more shares safely they could match buyers and sellers, the more money they made. This is why they needed to know “what’s behind your first order?”

The more you had to buy or sell the easier their job was. Whoever controlled the order flow controlled the stock. A specialist who worked hard to get you better fills (or as close to VWAP for that day-value weighted average price) would get lots and lots of order flow.

Meanwhile… the retail trader sends orders to the floor and had to wait for a fill.

YES, YES, YES, I know there were order handling rules and “we take care of the public” and all of that stuff. Who would you give priority to? A million shares of order flow or a 100 share order to buy IBM?

Anyway, I am sure you could see the edge reading the tape for a NYSE stock. Follow the specialist!!

From your computer, a trader could see the specialist bids/offers and the price action in time and sales. Trade with the specialist and you were in good shape. To make it even easier there is a “specialist book” you can lease electronically each month to see the shares advertised to buy or sell at levels outside of the inside market (the highest bid and lowest offer).

How cool was that? My friend Rob C. would say the specialist was “stepping up or stepping down his quote.” He made a great living following the specialist. He was trading over a million shares per DAY using this method of tape reading.

Ah the good old days. 🙂

Today's Trade of the Day | 11-20-17

NKE-Nike Inc 11-20-17

NKE-Nike Inc 11-20-17

NKE-Nike Inc offers a nice lesson today. It's a solid momentum move, very bullish, but a bad buy today. The stock price has closed above the open 10 out of 11 days, and gapped higher, into meaningful resistance. This trade offers one more bullish day of momentum, if you already own the stock from lower prices. Buying now offers at best, a 1-1 risk reward. Break-even trades make break-even traders. The next NEW trade in this stock is a pause above $60.

SPY ETF Chart 11-20-17

SPY ETF Chart 11-20-17


S&P 500 Heatmap

SP 500 Heatmap 11-20-17

SP 500 Heatmap 11-20-17

Stocks to Trade | Monday Edition 11-20-17

Bullish Momentum: SQ, CPB, SRPT, EFX, CREE

Bearish Momentum: qd, ctsh



Bearish Order Flow: qd, pcg, evhc, amgn, mnk, ibm, agn, cah, cvs, celg, twx, tsla

Double Normal Volume: SQ, FL, CBS, WMT, TGT, TSLA, XNET, EA, ROST, CC, OMC

Inside Days: efc, xom, csx, cvs, bsx, bby, dal, mgm, khc, ual, lly, txn, symc, abbv, nrg, esrx, bhge, avgo, unp, amgn, wdc

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