If there is anything that can take the market’s mind off the Fiscal Cliff for just a minute, it will be Ben Bernanke’s speech at 2:15pm (EST). Granted, every word he utters will have an effect on the Cliff and what the zombies may or may not do so we could see some volatility this afternoon.
We took advantage of today’s pop to lock-in profits on some of our higher priced options as we want to continue to stay nimble while the zombies decide if they are going to push America off the Fiscal Cliff.
The market is off its highs as the bulls try to penetrate the next layers of resistance but the bears are hoping the Fed disappoint with their QE4 initiatives.
Although 4Q earnings season is winding down, there is one company’s numbers we are interested in today. Restoration Hardware Holdings (RH, $35.94, down $0.12) will announce their first quarterly report as a public company in years after the close and in the past, it was a lousy stock.
We aren’t sure if the went bankrupt years ago or if they were taken private but we remember them always announcing lousy numbers. The company made its IPO (initial public offering) debut at the start of November and closed at $31.10 on its first day of trading.
There are no options listed as of now but there could be in the future. Restoration Hardware could announce some good numbers based on how the Housing sector has performed this year. The suit-and-ties are expecting a profit of 4 cents a share on sales of $282 million.
As we head to press, the Dow is up 6 points to 13,256 while the S&P 500 is higher by 2 points to 1,430. The Nasdaq is down 2 points to 3,020. Subscribers, check the Members Area for the updates and stay ready this afternoon in case we take action on new trades or lock-in further profits on others this afternoon.