Monday afternoon kicked off the unofficial start to this quarter’s earnings season with Alcoa (AAL) symbolically leading the way. However, the true start of earnings season occurs this afternoon when tech bellwether Intel (INTC) reports their earnings and financial bulwark J.P. Morgan (JPM) reports tomorrow. Next week, the reports start flooding in. Whereas the last few quarters, a company beating its earnings but missing revenue growth seemed to be the norm as cost cutting was prevalent, we should have a more normalized season. Already as was shown with the AA report, despite thrashing revenue guidance, the fact that the bottom line was sharply below earning’s estimates is what brought the stock down sharply on Tuesday. It is time for Corporate America to show true earnings growth according to the markets so pay particular attention to quarterly earnings, keep one eye on revenues, and especially watch forward guidance as that will give the true shape that any given company is in overall much less on a trading basis.
Markets in Asia were mixed with Tokyo up 1.6% and Hong Kong Down fractionally. Markets moved more uniformly in Europe with the bourses up about ¼%. All else is quiet. Futures are slightly weaker on the weak retail sales data. Look for a very quiet day with a slight downside bias ahead of options expiration tomorrow with relatively low news flow. Focus on the stocks in the news, tiny microcaps, and stay away from any scalping as movement will be at a paucity today in all likelihood.
Reiterating-
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.
If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-
Good- The following stocks have good news and/or a strong technical pattern
THOR- closed near a high
TWC- closed near a high
RIMM, AAPL- closed near a high
GMCR- closed near a high
WLP- closed near a high
UAUA- closed near a high
JOYG- closed near a high
MON- closed near a high
LAB- announced it is selling its NYSE market making division to Barclay’s
MSPD- closed near a high after it pre-announced positive 1Q guidance
ASTC- closed near a high
JAZZ- closed near a high
ARST, SQM, DPZ- featured on “Mad Money” last night
OSTE- pre-announced positive revenue guidance
WSM- pre-announced positive earnings guidance
SAP- pre-announced positive earnings guidance
SNSS- announced publication of nonclinical Coreloxin data in lukemias
TSTR- FCC granted the company licensure to begin broadcasting
ETRM- positive drug study results
BNVI- positive phase 1B results from Bezielle trial
AONE- signed battery supply agreement with Fisker Automotive
Bad-The following stocks have bad news and/or a weak technical pattern
GAP- closed near day’s intra-day low on follow-through from Monday’s poor earnings
ROSG- closed near a high after positive drug study results were published online, but announced a share offering after the close
ZZ- beat earnings estimates, but traded lower after-hours
SEED- poor earnings
BGG- poor earnings
Earnings:
THURS JAN 14 BEFORE
BGG PKX SEED
THURS JAN 14 AFTER
INTC SHFL
Good luck today.
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
Joseph R. McCandless- Managing Partner
D. Timothy Seaquist- Managing Partner
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