MakisSwingTrader: FB, GOOGL, GS, JPM, NFLX, SPX

Wednesday, July 30, 2014

FB, GOOGL, GS, JPM, NFLX, SPX

The market (SPX) is about to make a run higher. What we have seen the past few weeks is a market that is making sideways consolidation before the next leg up. Instead of price consolidation (pullback), we are seeing time consolidation (as price remains the same).

LNKD EARNINGS PREVIEW:
It reports tomorrow after the close. This is not official. I don't know what they are waiting for. I will have to confirm that the report is tomorrow before making the play. I don't want to get stuck holding a play for the wrong reason.
The fundamentals look okay. I will score it at 7.5 out of 10. Since it went public on May 19, 2011, it has reported earnings twelve times. In the twelve quarters, it beat earnings estimates eleven times. The one exception (eight quarters ago) came in line with expectation. It beat revenue estimates and maintained guidance in all twelve quarters as well. With all the good reports, it gapped lower six times. So beating earnings and revenue, and maintaining guidance is not enough. I guess user growth was the problem. I believe the World Cup might have helped it gain uses.
Technically, it looks bullish (see the weekly and daily charts below). My problem with it is the fact that it has made a strong move up the past two weeks. That will not stop me from taking the trade. The worst case scenario will be to limit my exposure.
I will buy September Call options going into the report (if it is tomorrow).

TSLA EARNINGS PREVIEW:
Reports tomorrow after the close. The fundamentals look bad. I will score it at 3.5 out of 10. Also, it beat earnings estimates the last three quarters but missed revenue in all three. Not good.
On the technical side, there is a symmetrical triangle in place (see TSLA-DAILY). The pattern is neither bullish nor bearish.
This therefore gives the advantage to the bears (based on fundamentals). I will buy September Put options going into the report.

LNKD-WEEKLY