ES Futures are throwing a sucker punch to the bears tonight after Turkey announces overnight rate hikes to 12% up 4.25%. This could spur other countries to make similar moves which helps curb investor fears. Read here.
Ichan saved AAPL from falling into the depths of hell today. Perhaps on his next date with Cook he needs to show more leg. Not to worry though; he is still wearing his NFLX crown which was up 6.7% today closing at all time highs. AAPL bulls will enjoy seeing this open interest. Let’s see if the 500 puts can do what the calls usually do.
The market held onto today’s gap higher and whether it was just an oversold bounce or the start of a new uptrend remains to be seen. The final FOMC decision under Bernanke will be released tomorrow at 2:00pm. Market participants will likely piece through every single word in order to find an excuse to either rally or breach recent lows. Barring anything other than the expected 10 billion reduction in bond purchases, the response could even be muted. Exciting stuff! Here is SPY‘s open interest for tomorrow.
Despite all the China woes, China momentum stocks such as BIDU, YY and QIHU had good upside moementum today. Speaking of China, a Wedbush analyst thinks that TSLA‘s Model S sales are off to a good start and sees a sales boost in the coming months. I imagine that more upgrades based on China sales will soon roll-out because no analyst wants to be left-out of the arbitrary numbers game.
So far my BAC and C pick-up yesterday look good. KORS, although didn’t rally huge, ended higher and exhibited unusual call buying via @WallStJesus. They report February 4th. Also, via Jesus, huge unusual call buying in AOL today. I am long the name so if you don’t mind chasing it then go for it – all the better for me. DECK also still looks good.
FB reports earnings tomorrow after the bell. Analysts are looking for EPS of 27c on revenue of $2.32B. Updated weekly open interest. The weekly IV at 127% and the options market is pricing in a + or – move of $5.60.
If the market decides to rally once the FOMC minutes are out of the way, I like the look of solars (FSLR SCTY TAN CSUN CSIQ etc.) for more upside. Maybe the POTUS can throw some good words on them tonight, just for kicks.
Random chart of the day belongs to ALGN. It’s not very exciting, but I think it has been oversold and is a good swing long from around here. Put your stop at $53.70 You can thank me later or throw tomatoes at me.
I am still holding HSP, which I highlighted here.
I can’t wait for all the well-informed astute tweets about the President’s speech tonight. Thanks in advance for your valued opinion on all topics discussed.