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Earnings, Earnings, and More Earnings! SPX, Nasdaq, WLT, X, MT, COH, MCK, SHW, BRCM, FFIV, DWA, NFLX, CMG, MOS, MIPS, IBM, BWLD, MEE, RIMM, NOV

|Includes:AVGO, BBRY, BWLD, CMG, COH, DWA, FFIV, IBM, MCK, MEE, MIPS, MOS, MT, NFLX, NOV, SHW, Walter Energy, Inc. (WLT), X

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The market opened down this morning, but, quickly reversed its course.  To start off, mining companies reported disappointing quarterly results, including X, MT, and WLT, which all closed in the red -3.36%, -5.4%, -1.77%, respectively.  But, strength in techs and some of the recent high-flyers was enough to offset the weakness in the mining sector.  IBM approved an additional $10 billion for its stock buyback; its stock finished just slightly higher.  RIMM continued to zoom higher on buyout chatter, gaining another +5.88%.  NFLX and CMG both made new all-time highs today.  CMG gained +3.51%, recording an intraday high of $215.38.  NFLX added a whopping $10.78 onto its already elevated stock price, almost touching $180/share today!  In the Trading Room, we were playing the NFLX weekly 170 calls:

October 26, 2010 9:08 AM
coming up to test $175 again; got a good scalp on the 170 weekly calls

October 26, 2010 9:18 AM
new high! those $170 weekly calls went from $4.5 to $7 in about 20 minutes

October 26, 2010 9:53 AM
might see $180

October 26, 2010 9:55 AM
those 170 weekly calls are flying! almost $8! 

October 26, 2010 10:15 AM
$179+ those 170 calls are over $10!!

These 170 weekly calls had a huge range today, opening at $1.76 (day low) and trading as high as $10.35!  They closed at $8.6.

MIPS vaulted +32.58% today after reporting a stellar quarter last night.  This morning, COH delivered a blowout quarter and its shares hopped +11.92%.  SHW posted flat earnings for the 3rd quarter and cut its forecast for the 4th quarter, sending its shares down 3.51%.  NOV jumped +8.46% on better-than-expected quarterly earnings.

Agriculture stocks were very strong today, as discussed this weekend in Sector Watch.  We got into MOS Nov 70 calls yesterday and booked gains as high as +115% today:

October 26, 2010
12:36 | HappyTrading MOS ($71.95) Sold to Close 11C70 Nov 70 calls, at $4.20 +115%
10:36 | HappyTrading MOS ($71.50) Sold to Close 11C70 Nov 70 calls, at $3.90 +100%
08:03 | HappyTrading MOS ($70.55) Sold to Close 11C70 Nov 70 calls, at $3.30 +69%

MOS finished the day up +5.06%.  Those Nov 70 calls traded as high as $4.35 and closed at $3.8.

After the market a flood of earnings came in.  Since they are so many of them, I will just post some trading results in after-hours:
FFIV +6.74%
MCK +4.99%
DWA +3.32%
BRCM +11.5%!!
BWLD -7.27%
MEE -1.38%

The Dow was up +5.41 points; SPX added +0.02 points; Nasdaq added +6.44 points:

Most sectors were flat to slightly green, which were properly reflected in the major market indices.  Surprisingly XME (metals and mining) only fell 0.14%!  FXI (Chinese ADRs) was also slightly off.


SPX was basically flat.  Its daily MAs went up and the MACD was flat.


Nasdaq gained +6.44 points to close at 2497.29, just below 2500.  Its daily MAs and MACD moved up.

The market has been testing SPX 1190, but, has not been able to break through.  VIX spiked up to test 21 today, but, closed just above 20.  BRCM's solid results and the strong buying action tonight could inspire more buying in the tech stocks tomorrow.  Above 2500, Nasdaq could see a breakout.  However, energy and mining sectors remain weak.  We'll have to see if tech stocks can push SPX above 1190 tomorrow.  Gold traded down this morning, but, was able to regained its footing before the close, an indication that money is still staying in the markets, as disussed in the Sector Watch this weekend.

Good night and HappyTrading! ™ (click to see our Facebook Page)