9:15am (EST)

Abercrombie & Fitch (ANF, $36.76) is up 5% this morning in pre-market trading after beating Wall Street’s earnings expectations.  The company said it earned $39 million, or $0.44 a share, versus $64 million, or $0.72 a share, in the year-ago period.

The 40% plunge in third-quarter earnings should have sent the shares plunging but we didn’t feel too comfortable shorting this one.  We have been talking about how shares were right as resistance ($37-$38) but Wall Street has chosen to look forward to the company’s future prospects and is ignoring today’s lousy report.  This is why trading earnings are so tricky…

Shares are up $2.39, to $39.15, and if the gains hold the stock will be at a new 52-week high…

We have a great story in the Members Area this morning on Netflix (NFLX, $58.19, down $1.25) and why you might want to take a look at the company.

Bottom Line:  We think Netflix could be a $100 stock by next summer.

If so, find out how you can make 10x or more on your money on the RIGHT option trade.  In other words, if we are right with our new option trade this morning, for every $150 you invest it could be worth $2,000.  Or $1,500 into $20,000.  We show you how this morning…

Futures are up as we head to press…Dow futures are up 17 to 10,206 meaning we are headed for a slightly higher open this morning.