Looks like traders are moving money from GILD to BIIB, maybe on the perception that BIIB is oversold.
Part of the article from Barrons, July 25,2015
Amazon Dazzles in the Brave New World of the Cloud
"More important for tech investors is that this was the second quarter that Amazon broke out data for its cloud computing service, Amazon Web Services, which is now approaching $8 billion per year in revenue.
As this column noted back in April, AWS just dazzles. Forget all the books and power tools Amazon sells. The cloud business, growing at 81% last quarter, has an adjusted profit margin of 21%, vastly higher than the 5% of the total company profit mentioned above.
Amazon runs servers that handle computing jobs for a fee. The pace at which this operation is swallowing computing tasks for companies all over the world is staggering.
And it has profound implications for traditional computer companies. As this magazine said two years ago, Amazon—along with other cloud-computing outfits, such as Microsoft ’s (MSFT) Azure; Google ’s (GOOGL) own data centers; Rackspace Hosting (RAX); and the hosting businesses of Verizon Communications (VZ) and other telcos—are poised to displace the data centers companies traditionally built internally as private IT shops (“Building the Cloud: Who Wins, Who Loses,” Oct. 14, 2013).
AWS’s rocketing growth, along with some worrisome signs in recent earnings reports, suggest that moment has arrived. Signs began three weeks ago with a revenue warning from chip maker QLogic (QLGC), which said sales to makers of storage equipment, a bastion of traditional IT sales, were weaker than expected.
One observer, Katy Huberty of Morgan Stanley, wrote that the QLogic results confirmed a survey she conducted in June among corporate information officers, who said they were accelerating the shifting of their budgets to the “public cloud,” meaning, AWS and the rest."
The banks C & BAC have made new highs. Some of the guys on TV are telling everyone to buy aggressively. What do you think? Is this be beginning of a new rally or another top?
Joe Terranova just said on CNBC that he took a big loss in June playing the short side because he was concerned about a correction. His strategy is now to "buy high and sell higher".
Because of the high option premiums, spreads are a good way to play this during earnings. Are you planning to close out your 126/130 call spreads before or after earnings?
In a previous post, you had mentioned the Jan 110/120 call spreads. How long do you plan to keep them? Don't forget that you will be liable for paying the dividend if you are short ITM calls during ex-dividend which is coming up in a few weeks.
C would be $80 right now if it had not done a reverse split. I had sold my position for 5.30 back in 2009 ($53 post split adjusted). Pre-split, this was the stock having the highest trading volume. They say a reverse split would have no effect on the price of a stock. But it does, if only for psychological reasons. If BAC had done a similar reverse split, it would have ended up in the same predicament as C.
Big options activity today. The volume for the July 17, 57.00 calls is now 4,034 for today. Someone is anticipating a big move up after earnings.
Joe Terranova is now all in the market. The other panelists are also bullish. Even NFLX is now at a new high.
I noticed on the website The Richest, that Joe Terranova was given a net worth of 30 million and Jon Najarian a net worth of 50 million. It makes you wonder how they were able to determine their net worth. I guess they are still appearing on CNBC to generate more new clients.
Last month, I had posted a strategy I had found on YouTube. The strategy is to buy the market lows on Thursday, the week before the monthly option exp. The market should be higher the following week.
Has anyone heard about this strategy?
The author had back tested this and it appears to be an almost sure thing. It had worked for me last month. Yesterday, late in the day, I bought calls on the SPY and QQQ. Of course, I wish that I had bought more calls. It is so difficult to buy when the market is dropping, especially with all of the bad news in the media. I will post the video if I can find it again.
In order for one to have held the position from the first day until now, you would have had to been short 12,000 shares. After the last split, you would end up being short just one share. I agree that just being short the shares is a very risky strategy. Put spreads may be the best way to play this.
At 10.52, Icahn is now down around 618 million. He needs for this to move up to 19 just to break even.
I cannot imagine the Fed doing anything dramatic before the end of this administration which would result in a bond/stock market collapse. But since I think there will be a slight bias of interest rates to the upside, I am trading TBT from the long side.
They should have announced a 10 for 1 split, instead of a 7 for 1 split. This would put the share price at around 70 with some room to quickly move up to 100, since 100 may prove to be at least a temporary psychological barrier.
Everyone including the guests on CNBC Halftime is saying this is the start of a new market rally. Even Joe Teranova, who has been bearish, is now bullish and think the financials will lead this new rally.
"The Stock Trader's Almanac says that the "summer rally" in most years is the weakest rally of all four seasons. The week after June Triple-Witching, the Dow has closed down 21 of the last 24 years."
Historical statistics is on your side. However, there is always the possibility this year may be different.