The action has been flat today as the zombies continue to work to get a deal done. There has been more political posturing, grandstanding, and finger pointing but at least they are communicating in their own way to avoid the Fiscal Cliff. The market is mixed as we head into the second half of trading but we do have some really good news.
There are a few earnings announcements after the bell and for the rest of the week that are worth mentioning.
Bed Bath & Beyond (BBBY, $60.38, down $0.01) will report their numbers today after the close and we would love to take a trade on this one. The company has a good history of beating Wall Street’s expectations and shares normally get a nice pop following the release. This time around, we aren’t so sure as we feel the company could come up a little light on their numbers. We hate shorting strong stocks until they start to weaken and shares are nearing their 52-week low and their could be an opportunity for a quick trade.
Darden Restaurants (DRI, $47.20, down $0.03), Red Hat (RHT, $52.84, up $0.64) and Nike (NKE, $98.73, down $0.19) will report on Thursday while Walgreen (WAG, $37.54, down $0.01) is on deck before Friday’s open.
The Dow is down 10 points to 13,340 while the S&P is lower by 2 points to 1,444. The Nasdaq is higher by 2 points to 3,057. We have been talking about the turnaround in Tech and it’s a good sign to see them higher as we head into the second half of trading.
We have action to take on 2 trades that are showing triple-digit gains and we have another NEW TRADE for you today. Our Knight Capital Group (KCG, $3.54, up $0.21) trade from August has finally paid off as the company accepted a deal from Getco. We predicted a buyout would come when shares fell from $10 to $2 and the offer is for $3.75 a share in cash and stock. Our call options are up 91% so we will officially be ringing the register on this trade.
We also have another trade that is up 132% and we are locking-in a THIRD of the profits. We still think the stock and our options will still go up over the next week or two but we need to be prudent and take some of these fat profits off the table.
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