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Financial Sector Earnings Are In

The Financial Sector Earnings Have Started Pouring In, and the Results Are....

...Surprisingly positive given all the regulatory and litigation issues they are facing.  Numbers came in quite positively for Bank of America (BAC), JP Morgan (JPM) and Wells Fargo (WFC), yet we are waiting to see what the rest of the week brings us with Citigroup (C), American Express (AXP) and Capital One Financial (COF) announcing over the next two days. 

Adding to this positive Earnings start is the fact that the World Bank raised its global GDP growth forecast for 2014 from +3% to +3.2%, and we are sitting right smack in the middle of a very surprising Earnings Season for Financials.  Maybe this was on the heels of a much better than expected release of Retail numbers, simply a result of lower Guidance heading in (always a great way to beat numbers... keep them low to begin with), or true strength in the Global Economy.  All that matters to us is trading opportunities that we can now find.  ETNtraders are sitting on some very nice Iron Condors on BAC and WFC, and will wait with bated breath for AXP, INTC and GE roll out their results tomorrow and Friday. 

For those who like to learn more about how we profited 9% already this year, and what our plans will be moving forward into 2014, please join us for a Free Introduction Session by registering in the box to the right of this blog.  If you have any questions, comments or feedback, please know our door is always open.  Just send your emails to Support@ETNtrade.com and you will receive a prompt response. 

Please have a great rest of your trading week, stay safe, profit, and don't lose money! 

Happy Trading,

OptionDave

 

Retail Earnings Issues

With Earnings Season kicking off this week, three of the stocks that seemed to jump off the page at us were BBBY (Bed Bath & Beyond), FDO (Family Dollar) and PIR (Pier 1 Imports).  All three announced Earnings, reported numbers short of expectations, especially for December, but what is even more troubling is their low Guidance numbers.  All three companies are expecting a slow down in sales over the next quarter.  These numbers sent all three stocks lower, with two of them off over 12% (BBBY and PIR). 

Is this a sign of what is to come in the Retail Sector over the next few weeks?  Possibly, no check that... probably.  What I can tell you for sure is this:  I would be very cautious if directional trading the Retail Sector during these coming weeks, as I expect Volatility to continue along this Sector over the next month. 

So, what should we do if we cannot trade these directionally?  Well, join us on Monday for our Live Trading Class and see just how we plan to position ourselves for the upcoming announcements next week on such companies as INTC, GE, UNH, AXP, JPM, and many more.  If you are not yet a Member, what are you waiting for?  Come to our Free Trading Class on Tuesday and hear more about the reason why ETNtraders are pulling in profits that far exceed those acheived by the average Investor in the Market.  To join the free class, simpy click the link to the right of this blog and register now.  As for our Members, you know what to do... see you all Monday or Tuesday!

Happy Trading,

OptionDave

Night Classes Starting December 10th

Many current and prospective Members tell us they are unable to make it to our Boot Camp Training Series due to the fact that we hold them at 2pm ET.  As always, when you speak, we listen!  So, starting Tuesday, December 10th, we will be hosting a round of Night Classes.  These class will run for 2 weeks, with a start time of 7pm ET.  As always, we will record the sessions for those still unable to make it, however we hope that this alternative start time will open up doors for a whole new group of Traders who were unable to attend in the past. 

If you want more information about these classes, please feel free to contact us by clicking the Contact Us tab at the top right.  We have a few Free Introductory Classes over the next few days, and you are all welcome to attend.  They will be posted in the column on the right of this page.  We hope to see you there! 

Happy Trading,

OptionDave

"Disruptive Innovation"

Every once in a while someone comes up with a brilliant idea. Well, brilliant ideas are abound, but every now and then synergy and opportunity meet. If you’ve ever heard the phrase “You don’t know what you don’t know”, you’ll understand exactly what I’m talking about. With the Twitter (TWTR) IPO harnessing significant market attention, we are gently reminded that the “Next Best Thing” is always on the horizon – as long as you keep that head of yours on a swivel!

I recently read an article regarding a relatively new technology company specializing in restaurant operation, management, inventory control and automation – The name of the company is Leapset. In short, they have a cloud-based platform that is reinventing the wheel in food service with what their CEO Mani Kulasooriya describes as “Disruptive Innovation”.

Take conventional thinking about improving operational efficiency and throw it out the window, because sometimes the adage “If it ‘aint’ broke, don’t fix it” does not apply. According to Mr. Kulasooriya “Disruptive innovation does not merely improve, but creates and replaces entirely new business models”.  

For example, “If you wanted to order food from a restaurant, all you have to do is take out your phone and Leapset will display a list of restaurants located in your area allowing you to navigate through the menus, select the items you wish and the delivery will be made to your doorstep. The restaurant receives the customer’s order and customer details on their POS device and the payment is processed automatically.  This is just a simple example of the different solutions that run on the Leapset platform”.

As social media continues to permeate our daily lives, this creative approach to technology and innovation is by no means limited to restaurateurs. There countless examples of “Disruptive Innovation” and a few have caught my attention as of late. Whether product or concept based, they leave you pondering the question “Why didn’t I think of that?”

How about 3-D printing? Reminiscent of the days when the only people who had computers were large companies or independently wealthy individuals, only to see the prices drop like a rock as technology improvements and cost effective production was finely tuned. Many scoffed at the legitimacy of 3-D printing, but those same individuals are picking their jaws up off the ground now. Take Solid Concepts for instance – they have now successfully produced a .45-caliber handgun. Not a ‘plastic’ handgun like the ones produced by Defense Distributed, that would not withstand the heat and pressure demands, but an all steel handgun that is all 3-D-printed. It’s both frightening and exhilarating to ponder the possibilities, as long as the technology remains in the right hands (I’m holding my virtual breath).

How about the GoPro camera that is taking the world by storm? What an amazing story here to be told, and it was told recently on 60-minutes. A simple idea based on a personal need to take high quality photos/video to document personal adventures and activities. A surfer from California simply wanted to take quality pictures of himself and his friends riding waves without hiring a professional film crew.

The result - a billionaire surfer is created by the name of Nick Woodman. The GoPro camera has opened the portal to forever change the face of how and when we can “capture the moment”. It has quickly become the camera of choice for action athletes, adventure seekers, and home video aficionados all over the globe.

In fact, it was a GoPro camera that was used to capture the infamous “Bikers vs. Range Rover” incident in NYC, among other very notable headlines. The possibilities are limited only by the imagination of the user, and that is what makes “Disruptive Innovation” such an amazing perspective for creative thought and development.

After all, sometimes things need fixing even if they aren’t broken, because there is always a better way out there… so keep burning the midnight oil on your billion dollar garage project! You just may be on the precipitous of the next best disruptive innovation that WILL reinvent the wheel.

October Expiration: DanTrader Hits 85% Win Ratio!

Today was Option Expiration, and a BIG PAYDAY for ETNtrade Members!!!  During our Member-Only Live Trade Exits Session DanTrader closed all 20 of his open trades sensitive to October Expiration... and the results are, well, quite impressive:

Carmax (KMX): Call Condor = ROI 150%

Google (GOOG): Iron Condor = ROI (100% of risk).

Tesla (TSLA): Reverse Iron Condor = ROI 97%

Intuitive Surgical (ISRG): Reverse Iron Condor = ROI 82%

Yelp (YELP): Iron Condor = ROI 81%

Green Mountain Coffee (GMCR): Reverse Iron Condor = ROI 76%

iPath S&P 500 VIX Short Term Futures (VXX): Put Condor = ROI 70%

Infosys (INFY): Iron Condor = ROI 58%

Lindsay Corp (LNN): Bear Call = ROI 56%

Facebook (FB): Reverse Iron Condor = ROI 56%

Paychex (PAYX):Iron Condor = ROI 52%

Chipotle (CMG): Reverse Iron Condor = ROI 47%

Family Dollar (FDO): Iron Condor = ROI 36%

Coca Cola (KO): Iron Condor = ROI 32%

Safeway (SWY): Iron Condor = ROI 25%

International Business Machine (IBM): Reverse Call Butterfly = ROI 25%

Hewlett Packard (HPQ): Iron Condor = ROI (22%)

Joy Global (JOY): Broken Wing Iron Condor = ROI 20%

Schlumberger (SLB): Reverse Call Butterfly = ROI 4%

eBay (EBAY): Reverse Iron Condor = ROI 0%

Summary:  17 Winners, 2 Losers, 1 Break-Even Trade = 85% Win/Loss Ratio!!!

Congratulations ETNtrade Members!  Another FANTASTIC week officially on the books!!!

 

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