Wednesday, January 16, 2013

Daily Analysis and Stock Ideas for 01/17/2013

Daily Analysis
We continue to grind higher on the markets. Action today was similar to yesterday with gap down at open and drift higher on small volume rest of the day. This morning we had GS and JPM earnings. While GS earnings were stellar, JPM's were pretty good. Despite that we saw pretty small gains on the S&P. Story of the day was near 4% bounce on AAPL which also lead semi stocks  higher. I expect continuation of the trend tomorrow unless the economic data in the morning is way out of line. I still want to caution you guys that we may see sharp but shallow pullback soon, so keep taking profits in this ride up unless we zoom past 148.11 and hold nicely. We should then see 150s soon.

I took 4 trades an hour into trading session. 3 from the watchlist below.  I also took PANL long at 26.85, BRCM at 34.20 and IBM at 192.40. I also added CBS long at 37.87 (i'll come to that in a min). PANL, BRCM and IBM all opened in red along with the market and turned green quickly. I saw decent volume coming in so took the trades. I'm holding all 3 positions overnight. Late in the day I also added GNRC at 35.90. It has a strong breakout pattern as well.

I took CBS long because there was decent January $40 call activity in the stock last couple days. This meant there was potentially an event/announcement in play since earnings are not until mid-Feb. And rightly so, there was an announcement after hours with company announcing turining their outdoor advertising business into REIT, driving the stock 9% higher after hours. Nice $3 gain within a day if the gains hold into morning session tomorrow.

JCP and KSS had flat day. Got burnt on ANN yet again. ANN is banned from my trading list now.
DECK had a down day, apparently on CROX announcement that they didn't have a good holiday season. Go figure, people don;t see the difference between Crocs and  Uggs in winter season. Anyways, still holding 1/2 position with stops just over my entry point at 36.80.

RIMM had a nice pop in the morning as well. Still looks strong.

CF had a decent. Holding with stop at $215 which is above my entry point.

SPY levels
Resistance -  147.20 (we need to break this soon), 148.10
Support - 146.30, 146, 145.60, 144.50, 144, 143.06

Sectors to watch -
Financials - Strong on GS and JPM earnings.
Technology - Bounce in AAPL today. Watching semi's tomorrow.. Here's a chart for SMH, which looks ripe for b/o. Note - INTC annouces after hours so watch for strength/weakness on INTC for overall strength in SMH.

Trade Ideas -
I called the bounce in AAPL yesterday and recommended BRCM, which worked out fairly well. BRCM now has a nice flag on daily. I think there may be more juice in the lemon. I'm looking for position in SWKS as well. CRUS and QCOM could be other interesting plays.

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