A Breakout It is! SPX, Nasdaq, TXN, LLTC, ALTR, XLNX, GS, FFIV, RVBD, CRM, NFLX, GOOG, BIDU, MSFT, INTC, IBM, AXP, COF, V, MA
On Wednesday morning, TXN and LLTC reported superb earnings and pushed the semiconductor higher.  Both TXN and LLTC popped more than +10% between Wednesday and today.  After the market on Wednesday, XLNX further confirmed the strength in the sector.  ALTR also benefitted from the news and vaulted more than +10% as well.  GS stoked the [...]

On Wednesday morning, TXN and LLTC reported superb earnings and pushed the semiconductor higher.  Both TXN and LLTC popped more than +10% between Wednesday and today.  After the market on Wednesday, XLNX further confirmed the strength in the sector.  ALTR also benefitted from the news and vaulted more than +10% as well.  GS stoked the financial sector on Wednesday with its better-than-expected quarterly numbers.  GS climbed more than $10 since Tuesday’s close.

FFIV provided further fuel to the rally with its strong forecast.  FFIV shares were up +10.64% today.  We traded on FFIV earnings with RVBD, getting a quick overnight double:

  • 06:48 | Ecstatic Plays RVBD ($29.50) Sold to Close 01C27.5 Jan 28 calls, at $2.05 +105%
  • 06:45 | Ecstatic Plays RVBD ($99.43) Sold to Close 01C27.5 Jan 28 calls, at $1.98 +98%

In addition, we added calls on NFLX and scored a +147% overnight profit:

  • 07:03 | Ecstatic Plays NFLX ($102.70) Sold to Close 97.5 Jan 98 calls, at $5.50 +147%
  • 06:44 | Ecstatic Plays NFLX ($100.85) Sold to Close 01C97.5 Jan 98 calls, at $4.25 +91%

NFLX was up +5% today.

For myself, I add some CRM Jan 105 calls at $2.6 and sold them in the morning at $10.75 (day high) for a +313% gain:

CRM jumped +6.32%.

After the market today, 4 big tech companies reported:  GOOG, MSFT, INTC, and IBM.  Besides, GOOG, the other 3 reported well and went higher in after-hours trading.  In GOOG’s defense, the estimates were perhaps just too high.  "Earnings excluding items rose to $9.50 per share from $8.75 a share in the year-earlier period.  Net income climbed to $2.71 billion from $2.54 billion.  Net revenue, which excludes fees shared with partner web sites, jumped to $8.13 billion from $6.37 billion a year ago."  But, analysts were looking for earnings of $10.49 per share on revenue of $8.41 billion.  GOOG shares got hammered this evening, down 9%, almost $60!  BIDU shares fell 2% in sympathy.

AXP reported a solid quarter, but shares slid 2% on disappointing revenue.  COF net income fell sharply and its shares went along with its earnings, down 4.45%.  Both MA and V traded lower this evening.

The Dow was up +45.03 points; SPX added +6.46 points; Nasdaq gained +18.62 points:

SOXX (semiconductors) was up +1.86%.  FDN (internet) gained +2.07%.  GDX (gold miners) lost 2.05%.  XLF (financials) was up +0.93%.

SPX

SPX added +6.46 points to close at 1314.5.  Its daily MAs and MACD glided up.

Nasdaq

Nasdaq gained +18.62 points to close at 2788.33.  Its daily MAs and MACD also went higher.

Looking back now, it is more apparent that the market has been on a steady climb since mid December.  Certainly, with all the worries and headlines on Europe, it did not "feel" that way until the New Year.  VIX closed below 20 today, its lowest level since July 2011!  Still the market technicals are toppy.  But, buyers just kept on coming in.  Perhaps there’s still too much money on the sideline?  We don’t argue with the market, so, we are still trading the upside carefully and cashing in on profits as the market pops another leg higher.  However, it does feel like the market could use a quick pullback.  With MSFT, INTC, and IBM all reported well, we may see SPX test 1320-1325 tomorrow.  But, that’s the closest resistance and should induce some profit-taking.  We locked in a lot of profits today and are back in cash.  Tomorrow is options expiration day for January.  We could see a volatile day.

Good night and HappyTrading! ™

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