The Netflix (NFLX) Bears are out of their hiding and have exponentially begun piling Shorts on NFLX. Despite a blowout quarter, investors donâ€™t seem quite happy with Netflixâ€™s forward guidance and as a result, have started unloading the stock. Now, it is important to note that as I type this post, NFLX is up 2.5% because of the following UPGRADE:
Tom Brady, a future Hall-of-Famer, is probably one of the greatest QB to ever play the game of Football. This guy is purely cerebral and a stealth clutch-mode assassin. Over the years, despite being a die hard Packers fan, Iâ€™ve thoroughly enjoyed watching Tom Brady shred secondaries and win games with just 5 seconds on the clock. Words simply cannot describe the greatness of Tom Brady. With that said, I think Tom Brady has turned into David Beckham, and has lost the passion/fire that he once had. Tom Brady has lost his focus. When on the field, Tom Brady looks distracted/agitated, and has started acting like someone who doesnâ€™t give a flying F**K about winning or losing. This dramatic change in Bradyâ€™s character can be attributed to his super-model wife, who just like Victoria Beckham, has forced Tom Brady into a life of glamour and turned him into a diva.
So to all the New England fans who are hoping that Brady will bring the Lombardi back toÂ Foxborough, I suggest you donâ€™t get your expectations to high, because your leader is missing the qualities required to LEAD. I think Tom Brady has had an illustrious career and should consider retiring from the game of football, if he canâ€™t live-up to his own standards. ESPN can certainly make good use of Bradyâ€™s expertise.
Expedia (EXPE) is ripping Bears apart today, and Iâ€™m loving it. Expedia pummeled Wall Street estimates and reported staggering earnings. Is this a sing that the economy is partially improving? Maybe. But all that excitement aside, I strongly believe that this is just the beginning. EXPE still has more than 10% UPSIDE from current level.
Twitter (TWTR) is probably the most anticipated IPO since Facebook (FB). Though unlike Facebook, the people at Twitter are smart and know that being greedy with the IPO price can get the stock killed on the open market. With this in mind, Twitter is probably set to IPO at a price between $17-$20. Pretty reasonable.
Hereâ€™s what I think will happen on the day of Twitter IPO:
1) The stock will open at or around $25.
2) From there, the stock will shoot up 10% more, at which point the original investors of the Twitter IPO will start unloading the stock on Muppet investors.
3) Expect some exchange glitches and routing problems.
4) I expect TWTR to close below its opening price on the day of its IPO.
5) TWTR will eventually settle down and trade in the range of $15-$20 over the next couple months, before it finally breaks out of that range and begins its march towards $50.
TWTR certainly has a lot of potential; if only they can somehow start translating that potential into actual tangible revenue/net-income.
Bank of America (BAC) is probably the only stock that still hasnâ€™t recuperated all the money that its investors lost in the the stock market crash of 2008-2009. Itâ€™s been almost 5 years, and the stock still continues to trade in mediocrity and the Bank is still fighting never-ending lawsuits associated with Mortgage Fraud and what not. Now, BAC is at a very critical resistance. If BAC can successfully break this resistance, then the stock can regain its all-time-high. If it fails to break that level, then there might be more pain ahead for BAC investors.
LinkedIn Corp (LNKD) is about to get its spine shattered by the Bears, and exposed for the farce that it really is. If thereâ€™s one social-media company that is really Fundamentally weak, it would be LNKD. Originally a social network for Professionals, LNKD has turned into a spamming/trolling Job Site, where unemployed people meet more unemployed people to discuss their unemployment status. I give LNKD 3 more years, before it gets punkâ€™d by Wall Street.
The FED is scheduled to announce its rate decision and its views on the overall economy tomorrow; if and when they might start tapering the QE program. Though given the political gridlock in Washington, any hope of QE Taper, is utterly futile. One should not confuse this as a sign of Bullishness; in fact, it is the exact opposite. The longer The FED delays tapering QE, the more damage it will do to the overall economy, and distort the dynamics of the Financial Markets.
I expect tomorrowâ€™s FED announcement to be Neutral to Mildly Bearish. Gold and FX as always, will be volatile. The ideal trade tomorrow will be BUY going into the FOMC announcement, and Dump .i.e. SELL your positions 5-10 mins before the FOMC announcement.
Either way, The FED and Mr. Obama wont stop until the S&P 500 closes above 1800 to end 2013 on a positive note, as all the scandals are not good for business in Washington.
Before I begin:
Yahoo (YHOO) upgraded to Outperform from Market Perform at Bernstein
Now, Yahoo (YHOO) has been shredding Bears ever since CEOÂ Marissa Mayer took over. To be honest, I gotta admit, she has done one heck of a job for YHOO investors. The stock has almost doubled *Golf Clap*. Though it is unclear whether the company will be able to keep up with Wall Street expectations, and continue its Bullish climb to irrational all-time-highs. In the meantime, you can take advantage of the upcoming downward pressure on YHOO, with the stock having formed a Bearish Triple Top pattern.
JPY has been probably the most profitable and at the same time, the most volatile, trade since November of last year (2012). Over the past couple months though, the Bearish momentum on JPY seems to have flattened out quite a bit, and the JPY has been trading mostly sideways. Part of the reason for this is undoubtedly the uncertainty in Washington and not so impressive economic data from Japan and the US. I believe this is about to change. The data from the US will start improving over the next couple months, which will in turn put more pressure on the JPY.
Commodity Futures, once considered as a pseudo-non-manipulative financial instruments, has become a market that is cornered by a handful of financial institutions like JPMorgan, Goldman Sachs, UBS, etc… That said, the rules and fundamentals of trading commodities are still the same. The drill is still the same. Keep in mind, there is no market or financial instrument that is efficient anymore .i.e. not manipulated. So when you trade those Stocks/Options, you are already trading in rigged markets. Thereâ€™s that.