Entering text into the input field will update the search result below

Futures Pointing Towards Nice Start

Jan. 11, 2011 9:07 AM ETAA
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
9:00am (EST)

The market ended mixed on Monday as the bulls made an incredible effort to square things up with the bears but fell just short before the closing bell.  Tech was strong and managed to finish in the green but the Dow and S&P 500 extended their losing streaks to three-straight sessions.

The Dow was looking at a triple-digit loss shortly after the open but gained some of it back to only finish down 37 points, to 11,637.  The index traded to a low of 11,573 before bouncing back.  We are still looking for the index to run towards 12,000 with support coming in at 11,500.

The S&P 500 slipped 2 points and settled at 1,269.  We were looking for the index to hold 1,270 but support is strong at 1,250-1,260.  We believe the index can still chase 3,000 but we are watching support at 1,250.

The Nasdaq was down over 20 points at one point but managed to close with a 4 point pop to settle 2,707.  We were glad to see the index hold the 2,700 level but there is strong support at 2,550-2,500. We are still looking for the Nasdaq to test 3,000.

Turning to earnings, Alcoa (AA, $16.49, up $0.07) reported a profit of $258 million, or $0.24 a share, versus $277 million, or $0.28 a share in the year ago period. Revenue checked in at $5.65 billion, up from $5.4 billion a year ago. The suit-and-ties were looking for a profit of $0.19 a share on revenue of $5.7 billion. 

We mentioned yesterday shares had surged nearly 20% over the last few weeks and this was a classic buy-the-rumor sell-the news event. Alcoa also gave a rosy outlook but there was some nervousness when they said they face some sales “headwinds” with China as the country tries to curb inflation. 

Shares were down slightly last night in extended trading, falling $0.28, or 1.7%, to $16.21. There is strong support at $15 but Alcoa could bounce back today and challenge its 52-week high of $17.60, down the road, if $16 holds. 

And who said stock picking was a lost art? Our option trades got a nice pop yesterday as Tech held strong. We have profiled quite a few “under-the-radar” stocks that have flourished but they are starting to get noticed. When a stock moves from $27 to $32 in a month or from $12 to $16+ in 6 weeks, they get noticed. Good for us we got our subscribers in before the crowd and while these stocks have gained 20%-25% the options have returned triple-digit profits using less capital.
 
This, folks, is the beauty of options. 

As we head to press, futures are up: Dow futures (+57), S&P 500 (+7), Nasdaq 100 (+12). We have a lot to cover inside our Members Area so let’s go check the updates.  

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.