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  • Markets Tumble As Argentina Defaults: SPX, Nasdaq, DJI, YELP, GOOG, PCLN, LNKD, FB, WLP, HUM, UNH, GS, JPM, WFC

    US market took a sharp drop yesterday, as Argentina defaults on its $1.3 billion of debt. Jobless claims were more than expected, which didn't help. Stocks gapped down and kept sinking lower!

    High-flying internet stocks pulled back with the broader market: PCLN -1.07%; GOOG -2.69%; YELP -11.16%; FB -2.71%. Healthcare stocks were weak again: WLP -2.37%; HUM -2.24%; UNH -2.29%. Financials were among the weakest: JPM -2.1%; GS -1.64%; WFC -2.3%.

    After the market, LNKD reported earnings that topped analysts' estimates. Its shares popped initially to $208 from Thursday close of $180.64. The shares settled at $194.2 in the evening trading.

    On Wednesday, I saw that the broader market was showing some weakness and cashed out some trades on the longside and initiated trades on the downside. We were able to capture some nice wins:

    • 10:04 | Ecstatic Plays WFM ($39.10) Sold to Close 08C37.5 Aug 38 calls, at $2.05 +105%
    • 08:10 | HappyTrading FFIV ($113.00) Sold to Close 08C115 Aug 115 calls, at $1.59 -56%
    • 06:51 | HappyTrading UNH ($80.70) Sold to Close 08P85 Aug 85 put, at $4.25 +35%
    • 06:39 | HappyTrading WHR ($141.22) Sold to Close 08P145 Aug 145 put, at $4.95 +73%
    • 07:43 | HappyTrading FDO ($75.70) Sold to Close 08C75 Aug 75 calls, at $1.15 +7%
    • 07:37 | Ecstatic Plays VMW ($100.90) Sold to Close 08C95 Aug 4 calls, at $6.00 +50%
    • 06:51 | HappyTrading APC ($112.00) Sold to Close 08C110 Aug 110 calls, at $4.00 -11%

    VMW calls gave up a +50% profit. WHR puts yielded an overnight +73% gain! UNH puts did pretty well adding a +35% win overnight. WFM dropped sharply after its earnings. But, buyers came in after the market open. Even in a weak market, the buying was supported by the technicals. So, we jumped in on WFM calls, which resulted in a "daily double" in just a couple of hours, good for a +105% profit!

    (to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video. Don't forget to check out the "Buy-one-get-one-FREE" deal!)

    The Dow was down 317.06 points; SPX tumbled 39.4 points; Nasdaq lost 39.13 points:

    Most sectors were down around 2%! XLF (financial) lost 2.05%. FDN (internet) fell 2.22%. BTK (biotech) dropped 2.41%.

    SPX

    SPX tumbled 39.4 points to close at 1930.67. Its MACD dropped sharply.

    Nasdaq

    Nasdaq fell 93.13 points to close at 4369.77.

    I've been saying for a couple of weeks now that I think the markets need to consolidate a bit. Stocks were already weak on Wednesday, although some buyers came in after Fed's rate announcements. The Dow was actually giving clues early:

    DJI

    As you can see here, the Dow had dropped down to its 30-day MA on 7/25, and had not been able to rise higher. The 10-day MA was sloping downwards. On Wednesday, SPX and Nasdaq managed to close in the green, but, the Dow was again in the red. It was already pushing on its daily lower Bollinger Band. This is why I was increasingly cautious and picked up puts on Wednesday.

    With the market major indices falling 2% in one day, I'd expected some buyers to come in on Friday. But, this drop changes the tone of the broader market. Buyers should be more cautious now. We also have the latest unemployment rate due out on Friday morning. Let's see how the market reacts.

    Good morning and HappyTrading! ™

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    Tags: YELP, GOOG, PCLN, LNKD, FB, WLP, HUM, UNH, GS, JPM, WFC
    Aug 01 5:34 AM | Link | Comment!
  • Social Networking Stocks Go Higher: SPX, Nasdaq, TWTR, YELP, LNKD, NFLX, HUM, UNH, WLP, X, SINA, SOHU, RHT, VMW

    Stocks opened higher on Wednesday on solid GDP data. But, profit-taking drove the market into negative territory. However, after the Fed reaffirmed its intention to keep the rates low, buyers came back in again!

    Social networking stocks were strong today, after TWTR delivered strong earnings. TWTR popped +20% and it looks like it'll go higher in the coming days. Its nearest resistance is at around $50. YELP and LNKD also traded up, adding +8.81% and +4.2%, respectively. After the market, YELP reported a 4-cent-per-share profit for Q2, versus the concensus of a 3 cents loss! This is YELP's first profittable quarter after its IPO. In after-hours trading, YELP initially jumped to $82, but, ended the evening session slightly lower. I think this is just traders' knee-jerk reaction (and/or manipulation). YELP's quarterly report is stellar, including a strong guidance! YELP should go back to test $100 before the end of the year.

    NFLX managed to bounce +2.38%. X also vaulted nearly +20% after the company said the market has "bounced back quite well," especially demand for flat-rolled steel. On the downside, HUM dropped 5.63% after releasing earnings with rising costs. UNH traded down 1.57%. WLP was also down more than 3% in the morning, but, managed to close flat.

    The Dow was down 31.75 points; SPX added +0.12 point; Nasdaq gained +20.2 points:

    SOXX (semiconductor) bounced +1.01%. BTK (biotech) moved higher again. FDN (internet) added +1.52%.

    SPX

    SPX added +0.12 point to close at 1970.07. It closed right at its 30-day MA. The MACD went down.

    Nasdaq

    Nasdaq gained +20.2 points to close at 4462.9. Its daily MAs were slightly up.

    The market was mixed today. Although SPX closed flat, it is starting to show weakness. The Dow closed lower. However, techs were still strong. Besides, internet stocks, software was quite strong as well. Both RHT and VMW broke out higher! In my Market Forecast this weekend, I thought we'd see more consolidation. Chinese stocks continued to be strong. Shanghai's stock index (SSEC) ramped up higher on Thursday again! SINA and SOHU have been making a base for a long time now. I think these two are ready to make a move up!

    Good night and HappyTrading! ™

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    Tags: TWTR, YELP, LNKD, NFLX, HUM, UNH, WLP, X, SINA, SOHU, RHT, VMW
    Jul 31 5:16 AM | Link | Comment!
  • Can Nasdaq Push Higher? SPX, Nasdaq, FB, AMZN, BIDU, V, DECK, SBUX, MLNX, GLD, Z, TRLA

    SPX made another new all-time high yesterday, breaking above 1991! FB made a new all-time high as well. We locked in a nice overnight gain of +160%! We cashed out on FB August calls and used the profit to buy cheaper weekly calls, which brought our risk down to "0"! LNKD calls also did well yesterday!

    • 06:39 | Ecstatic Plays LNKD ($174.00) Sold to Close 0725C170 Jul 170 calls, at $4.55 +52%
    • 06:31 | HappyTrading FB ($76.00) Sold to Close 0725C70 Jul 70 calls, at $7.00 +160%

    (to subscribe to our trade alerts, please visit our Services Page or CLICK HERE to watch a step-by-step instructional video. Don't forget to check out the "Buy-one-get-one-FREE" deal!)

    The major market indices were little changed:

    HGX (housing) tumbled 2.73%. BTK (biotech) pulled back 1.53%. SOXX (semiconductor) fell 1.53%. FDN (internet) and IGV (software) gained about +1%. GLD (gold) fell 1.01%.

    Nasdaq

    It looks like Nasdaq is testing the recent high. 4500 could be a tough resistance for Nasdaq to break. Last night's earnings were mixed.

    AMZN is down more than 10% after reporting a quarterly loss! AMZN share price targets were lowered by many analysts! V traded lower after giving a lower-than-expected revenue forecast. DECK shares traded higher by more than $5 reporting a solid quarter and raising its guidance! SBUX trade about 2% lower even after beating its earnings estimates; its guidance was a bit soft. MLNX traded up by +6.44% after delivering earnings that were inline with the estimates. Z and TRLA both jumped higher on rumors that Z is in advanced talks to buy TRLA for $2 billion! Z vaulted +15% and TRLA popped +32%!

    The market indices may need to take a pause, but, it seems like there are lots news stocks to make this a busy Friday!

    Good morning and HappyTrading! ™

    Sign up for FREE membership!

    Tags: FB, AMZN, BIDU, V, DECK, SBUX, MLNX, GLD, Z, TRLA
    Jul 25 8:09 AM | Link | Comment!
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