EOT Position Update – July 22, 2009

| July 22, 2009

July 22, 2009

Market Snapshot

The markets continue to build on the positive momentum as we roll through the earnings season.

The technology sector is now the clear cut leader of the market.  As I predicted a few weeks ago, the strength in tech is pulling the rest of the market higher.

To find evidence, you need to look no further than the NASDAQ.  It continues to outpace the S&P 500.  It’s been this way all year.

The big news in tech came from Apple (AAPL) today.

The smart phone revolution continues to power revenue higher.  Increased demand sent revenue from iPhone sales up 303% from a year ago.

Their ability to grow sales at a time when customers are cutting unnecessary spending marks a shift in consumers’ view of these devices.  They’re no longer just a cool gadget.  It’s the centerpiece for people to stay connected to their personal lives as well as work.

This is all part of a larger move toward technology playing a more prominent role in everyday life.  And it should be one delivering profits for tech companies for years to come.

Now for the updates…

Position Updates

Just a quick note:  Remember, we won’t update every open position every week.  I try to focus on the positions that have some significant news or price movement.

  INTC October 2009 $16 CALLS (NQJQ)
INTC continues to move higher.  We crossed our second resistance level today.  Our call options reached a new high of $3.40 today, good for a 168% gain.  The rally appears strong as the shares advance on higher than average volume.  Aggressive traders may want to hold on a little longer.  Resistance is at $16.80 and $19.  Support is at $14 and $12.75.

  PEGA December 2009 $25 CALLS (PQMLE)
Our call options on PEGA moved into the money this week.  The move sent our call options up 63%.  The next big news will be the quarterly earnings in a few weeks. Resistance is at $27.50 and $30.  Support is at $20 and $17.50.

  EXP October 2009 22.50 PUTS (EXPVX)
EXP rallied on hopes of a quick rebound in construction this week.  Signs of economic improvement have investors hoping for the best.  EXP moved through our first resistance level today.  They’ll report quarterly earnings tomorrow before the market opens.  Resistance is at $27 and again at $30.  Support is at $20 and $18.

  BRLI August 2009 $35 CALLS (BJQHG)
BRLI is starting to regain some momentum this week.  I’m looking for it to close above $32.  This could spark another move higher.  Hold tight as BRLI tries to regain its momentum.  Resistance is at $36.80 and $40.  Support is at $27 and $25.

  AAN November 2009 $40 CALLS (AANKH)
AAN announced quarterly earnings yesterday and  the stock price’s reaction doesn’t make any sense.  They beat earnings estimates and upped the low end of the guidance for their full year earnings.  But the stock price is down?!?  I guess investors are focusing on the drop in revenue.  The stock price dropped through our first support level.  Aggressive traders should hold out for a rebound from this overreaction. Resistance is at $37 and $42.  Support is at $28 and $26.25.

Category: EOT Update

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