All of the leading financial stocks are trading sharply higher this morning. Later this afternoon, the Federal Open Market Committee (FOMC) will release its monetary policy statement for the United States. The giant financial stocks have been the largest beneficiaries from the central bank’s actions since 2009.
Traders will want to follow J.P. Morgan Chase & Co (NYSE:JPM) very closely as the stock has been a leading indicator for the overall markets. Today, JPM stock is trading higher by 0.51 cents to $55.85 a share. This is indicating that there is very little fear that the FOMC will hint about tapering their current $85 billion a month QE-3 program. Some other leading financial stocks that are trading higher on the session include The Goldman Sachs Group, Inc. (NYSE:GS), Bank of America Corporation (NYSE:BAC), and BlackRock, Inc. (NYSE:BLK). Short term day traders should expect intra-day resistance on JPM stock around the $56.30 levels.
Amazon.com, Inc. (NASDAQ:AMZN) reported earnings last Thursday evening. They were nothing to write home about. The stock initially sold off after-hours, then crept higher the following day, pushing to a new all time high of $313.62. Many people think this stock can never go down because even on poor earnings, the stock still went higher.
The reason for the stock moving higher the day after earnings had nothing to do with bad or good earnings. It had to do with short covering following the lack of price drop on earnings. Tons of traders had bet the stock would collapse sharply lower on earnings. After reporting, the stock was only down one-percent or so. The same traders that shorted it prior to earnings, covered the following day. This forced the stock price up.
Notice how the last few days the stock has started to decline again. This is because those shorts have already covered and there are no real buyers left. If the stock can eclipse 100% of the move up from earnings, the top is in and shorts can be taken at will above $300.00. Yes, it is that simple. Cheers!
I wrote two articles yesterday. I only wanted to release two gems to the world for free. That was all. I discussed two stocks. One long, one short. Today, those two plays have gone in a major way in the direction I alerted. Anyone who took them is swimming in profits while anyone who saw them and did not act, is now filled with shame and remorse.
Here are the two articles.
In the article on Apple Inc. (NASDAQ:AAPL) I said go long. It is going to $485.00. Today the stock is trading $456.00, +8.21 (1.83%). In the article on Tesla (NASDAQ:TSLA) I said short it on any move above $136.00. Today it hit a high of $137.49 and has now fallen to its current level of $131.33, -3.29 (-2.44%). Both these moves will continue in the near future.
As long as you were not a piker, and know good plays when you seem them, I will continue to put out great calls for free. This gives you a little insight into the calls members get. By the way, they got the exact entry, pennies from the high on TSLA as a short, time stamped at my exact entry.
Chief Market Strategist
Today, leading integrated energy stock BP plc (NYSE:BP) is trading sharply lower during the trading session. Earlier today, the company reported earnings that were below estimates. BP cited a stronger U.S. Dollar, and added payout expenses from the 2010 oil spill in the Gulf of Mexico for the poor earnings report. BP stock is trading lower by $1.83 to $41.29 a share. Short term day traders should watch for intra-day support around the $40.75 level. The daily chart is showing support around the $39.80 area.