The stock market is forcing you to be a day trader.
The current trading environment lacks a clear bias, maybe NFLX earnings today will provide a catalyst. I doubt it though, the financials drive this bus. The stock market is struggling to gain footing in one direction. Many high-beta stocks are swapping buy days with sell-short days.
Yesterday set up a perfect trading pattern of momentum, followed by a 2 day pause on light volume. Tuesday was a day to be a buyer, and the morning was a glorious two hours of follow-through. Then the bulls left the building. Maybe it was side-stepping the JPM earnings after the close, maybe it was getting back to reality.
Either way, I am flat heading into Wednesday and in day trading mode again. I don’t see a reason to hold positions unless you are initiating options spreads.
Stock specific ideas and working hard to identify sector rotation is the correct play in this tape.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY price action gave back a solid morning of buying. We expected the $200 support to be tested, but were looking for one more day higher and then a healthy pullback before a new move higher. The $200 level will be our key reference point today.
(click the chart for a full view)
- Challenging morning to forecast market direction. Tough to give a perspective on yesterday’s afternoon selling.
- GOOGL and AMZN holding the breakout so far.
- AAPL neutral, I see no edge.
Charts in Focus
UNH continues to knock on the door of a 52 week breakout. The correct breakout level is $125 but it needs to hold above the level. You don’t want to get caught in a bad trade using a buy stop. Let it close and hold above $125.
(click the chart for a full view)
NFLX Earnings Today | Stocks to Trade 10-14-15
Earnings in play today > 1M avg shares: BAC, BLK, DAL, KMI, NFLX, PNC, TZOO, WFC, XLNX, JBHT
Relative strength to yesterday’s SPY negative change from the open: BIDU, CF, TSLA, AET
> 20sma, positive week and closed 2% higher from the open: AET, CF
<20sma, negative last 5 days and closed 2% lower from the open: qrvo, xpo, vrtx, wpz, avgo, hsnp, agn, biib, myl, abbv, vmw
Bullish Ideas ATR/Volume/Price: NFLX, NKE, LYB, CRM, TSO, ACN, UPS, HD, MA, UA, AMZN, UNH, PSX>84, GOOGL, DLPH, DHR, DIS
Bearish Ideas ATR/Volume/Price: xon, vrx, thc, mnk, biib, vrtx, qrvo, wpz, feye, amba, myl, gpro, yum, swks, tsla, vmw, xpo, agn, lrcx, gild, teva, lng, abbv, rrc, celg, gmcr, hot, stt, lulu, dltr, de, cof, pnc, dg, wmb
Weak Stock Weak Close: xon, biib, vrtx, qrvo, wpz, myl, vmw, avgo, xpo, agn, ete, abbv, hds, celg, mrk
Strong Stock Weak Close: NFLX, TSO, TSN, DLPH, TSLA
Weak Stock Strong Close:
Strong Stock Strong Close: TOT, ATVI, IDTI, GOOGL
20 day Breakdown: infy, jblu, vmw
20 Day Breakout: UNH
2x Normal Volume: BMR, TAP, VMW, GSK, EMC, FAST, JBLU, STJ, TWTR, BUD
Watch List Longs: GE, MO, KO, COST, SBUX, MCD, HD, UNH, TRV, DIS, JNPR, CSCO, INTC, LUV
Watch List Short: kss, mrk, abt, cof, pnc, m
Inside days: twtr, v, m, lvs, ual, gpro, clr, mur, sndk, nke, rax, hd, bby, jbl, ip, rost, sti, dre, ma, ba, adbe, yelp, mchp, grub, wdc, trv
Netflix Stock: Can Earnings Continue Streaming Success? (NFLX)
Netfix (NFLX) earnings always bring tons of sentiment and action, kind of like the movies it offers. Netflix’s upcoming earnings report — after the market’s close on Wednesday — should be no exception. So expect plenty of volatility in Netflix stock before and after the announcement.
No doubt, investors have had little to quibble about. For the year so far, NFLX stock is up a sizzling 130% to $112, which is by far the highest performing security in the S&P 500 index.
Netflix stock experienced a nice rally after the past summer’s correction, and NFLX is up 16% since late August. Even the unloading of billionaire investor Carl Icahn’s NFLX stake has had little impact on things.
OK, what to expect with Netflix earnings for the third quarter? Well, the consensus is for per share profits of 8 cents, which looks beatable.
Continue reading on investorplace.com
What’s Coming For Netflix This Earnings Season?
- Netflix, Inc. NFLX is scheduled to announce its third-quarter financial results next Wednesday, after the market closes.
- In a recent report, Wedbush reiterated an Underperform rating and $40.00 price target on the stock, alleging that the company is “likely to exceed subs guidance, but price increase and competition reflect chinks in its armor.”
- Shares of Netflix were down more than 1.2 percent on Friday.
According to analysts Michael Pachter, Alicia Reese and Nick McKay, Wedbush expects Netflix’s third-quarter results to beat the modest guidance. The experts expect earnings of $0.07 per share on revenue of $1.77 billion, slightly below the Street’s consensus (which calls for earnings of $0.08 per share on revenue of $1.75 billion), but in line with guidance for EPS of $0.07.
In the streaming sub net adds field, the firm is modeling 1.25 million local net adds and 2.5 million international streaming sub net adds, versus guidance of 1.15 million and 2.4 million, respectively.
Continue reading on Benzinga.com