AA kicks off a new earnings season…tomorrow
Index & Sector performance 10/07/13
The Market:
The markets started down strong but found early support and rallied into midday but couldn’t hold and press toward Friday’s close and instead sold off during the last hour of trading closing near the early morning slows but just slightly above.
Hard to believe we are kicking off another earnings season but Alcoa (AA) will start tings off again Wednesday 10/8/13 after the close. While AA no longer has the significance it once did, it still is known for ushering in the season and many larger more impactful names will then be reporting.
Retail (XRT) lead on the way down with Consumer Discretionary (XLY) not too far behind. The least worst was the Consumer Staples which saw Kraft (KRFT) put in a strong showing closing up 1.18%.
Story Stocks:
BlackBerry (BBRY)was back ni the news on rumors that it is in talks to sell pieces of the company to Cisco Systems (CSCO), Google (GOOG) and SAP (SAP). Traders and investors were showing some optimism that a sum of the pieces might provide more value and BBRY closed up 3.77% on the day closing just below $8.
Boeing (BA) watched Airbus poach a previously BA only customer when Japan Airlines places their first order with Airbus for commercial jets. BA did not see much pressure from the news closing down 0.26% but outperforming the broad market.
GW Pharmaceuticals (GWPH) might have had the day’s most exciting news after Lazard came out VERY bullish on the stock with a $65 price target and the analyst noted this company as one of the most compelling he’s seen The analyst’s previous price target was $22. The stock gained over 30% on the day closing at $32.65, well Friday’s close of trading at $24.70.
Cooper Tire (CTB) lost 12.84% after there appears to be a disagreement over pricing with Apollo Tyres who had previously agreed to purchase CTB.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: WWW, PLUG
Analyst Comments:
Upgrades 10/07/13
Downgrade 10/07/13
Initiations 10/07/13
Price Target Changes 10/07/13
The Game Plan:
Much like the opportunity we saw and identified on 9/30 for a bounce in the market for short term traders, there could be another opportunity presenting itself again for the shorter term quicker traders. While this could ultimately also end up being an ideal swing trading spot as well, our stance has been that it is best for those looking to swing trade to allow the pattern to prove itself before entering.
Tomorrow, 10/8, is a Bradley turn date but please also note that these turn date can come with a large margin or error window which can make them difficult to trade. Many seem to be liking the tracked Moon Phases so I will continue to post a chart with the dates. 10/18/13 is the next full moon. Still watching the MACD to see if a recycle and help propel the next leg of the market higher.
