AAL sets records with earnings and is lower premarket.
Reminds me of the Cream lyric "the only kind of luck I had was bad" (or something close to that).
A buy rating doesn't help when the price target is lowered simultaneously. But it really doesn't matter, as earnings are almost out and that, plus guidance, will determine where we go. I hope we can at least get back to the mid $40's, but given the way the stock has acted, I don't really expect it. In the money calls are inexpensive for anyone wanting to play.
I feel your pain. Seeing the same thing with some of the airlines. Incredible profits with very low fuel prices, and no prospect and fuel prices changing much, yet airlines heading down lately. But one issue to look at is the law of large numbers. Once a company has huge revenues and growth, it becomes harder and harder to replicate the same rate of growth. And the market looks into the future. With a bear market underway, AAPL could easily sink into the 80's.
Almost certain to make for a very ugly day tomorrow. If APPL is holding anywhere near $100, smart longs will sell and buy it back cheaper, or at least sell some covered calls. This market still can go much lower and be very unnerving.
Great company but will be hard to maintain $100 range.
Might as well pick up 2-3% on short term calls while you wait.
It is the flip side of longs who hold a stock too long, only to see profits disappear. Not many sellers left, so even moderate buying can send the stock sharply higher.
Very true and annoying. The stock's price is often determined by how good or bad an analyst's guesses are, rather than the company performance. If they estimate too high, the price gets clobbered after earnings, even if earnings are great. And even if a company beats by a wide margin, there is often the perennial question about whether or not they can do it again, sometimes penalizing good earnings just because of an analyst's speculation. It might not be so bad if all analysts were skilled AND honest, but we all know that often is not the case.
But, for the moment futures look strong and hopefully we continue higher.
After the morning plunge, I took a tiny profit as soon as AAL turned green with my trading shares, selling way too soon. Making money buying/selling VXX puts and calls. If we get another nice move higher on AAL, I'll be selling covered calls again, as the gains never seem to last.
I'm checking to see if this posts and stays. I know many firms no longer allow retail investors to trade them, but they can be very profitable (or the reverse) in a short time. Anyone here using DIG and DUG as hedges?
The opposite logic is to consider buying when all the bad news is out. You think there is any new significant bad news that isn't already out?
Thanks Uncle. I added a little on Friday and will probably trade out of it if we get a bounce Tuesday, thinking I can possibly buy it back cheaper. If not, so much the better for other shares I hold. Futures looking good at this point.
It is ridiculous that the market looks past the very low oil prices and focuses on PRASM. It would seem likely to me that at some point, when those playing this game and controlling the price can't stand the overlooked value any longer, some analyst will say that at this point the value cannot be overlooked, and then raise their price target. Then, of course, if that happens the penguins will follow and multiple analysts will mimic the same wisdom. But I have thought this for awhile now without it happening. What are the odds of analysts changing their point of view and focusing on cheap oil and big profits?