MomentumOptions.com Mid-Market Update for 11/5/2018
Earnings for the Week
12:35pm (EST)
The 3Q earnings picture is just past the halfway mark heading into the first full week of November. Total earnings for the 313 S&P 500 members that have reported results are up 22.7% from the same period last year on 8.4% higher revenues, with 78% topping EPS estimates and 62.6% beating revenue estimates.
Looking at Q3 as a whole, total earnings for the index are expected to be up 23.2% from the same period last year on 7.6% higher revenues, the 6th time in the last 7 quarters of double-digit earnings growth.
For the small-cap S&P 600 index, Q3 results from 264 index members or 43.9% of its members have been reported. Total earnings are up 24.9% on 8.1% higher revenues, with 67% topping EPS estimates and 61% beating revenue estimates.
For the small-cap index as a whole, total Q3 earnings are expected to be up 19.1% from the same period last year on 7.2% higher revenues. The Finance sector, which is an even bigger earnings contributor to the small-cap index compared to the S&P 500 index, is expected to see 44% higher earnings on 7.4% higher revenues.
For full-year 2018, total earnings for the S&P 500 index are expected to be up 21% on +6.7% higher revenues. For full-year 2019, total earnings are expected to be up 9.7% on 5.6% higher revenues.
As far as this week’s numbers, after today’s close: American States Water (AWR), Avis Budget Group (CAR), Booking Holdings (BKNG), Cabot (CBT), Carrizo Oil & Gas (CRZO), Douglas Dynamics (PLOW), Fabrinet (FN), FreshPet (FRPT), Howard Hughes (HHC), IntriCon (IIN), j2 Global Communications (JCOM), Luminex (LMNX), Marriott International (MAR), Mosaic (MOS), nLight (LASR), Occidental Petroleum (OXY), Rent-A-Center (RCII), RingCentral (RNG), Skyline (SKY), Tenet Healthcare (THC), Valvoline (VVV), Xencor (XNCR)
Tuesday
Before the open: Armstrong Flooring (AFI), Boise Cascade (BCC), CVS Health (CVS), Eli Lilly (LLY), Emerson Electric (EMR), Federal Signal (FSS), GreenSky (GSKY), Heska (HSKA), LGI Homes (LGIH), Malibu Boats (MBUU), Novanta (NOVT), ParkOhio Holdings (PKOH), Ralph Lauren (RL), Sotherly Hotels (SOHO), TopBuild (BLD), Unit (UNT), Zebra Technologies (ZBRA)
After the close: Ashland (ASH), Belmond (BEL), Community Healthcare (CHCT), Devon Energy (DVN), Diodes (DIOD), Energen (EGN), Etsy (ETSY), Five9 (FIVN), GoDaddy (GDDY), HCI Group (HCI), Inogen (INGN), Jazz Pharmaceuticals (JAZZ), Lending Club (LC), Match Group (MTCH), Neenah Paper (NP), Papa John’s International (PZZA), Planet Fitness (PLNT), Quidel (QDEL), Red Robin Gourmet Burgers (RRGB), ScanSource (SCSC), TrueCar (TRUE), Wendy’s (WEN), Zillow Group (Z)
Wednesday
Before the open: 21st Century Fox (FOXA), Barrett Business Services (BBSI), Cars.com (CARS), Dean Foods (DF), Dish Network (DISH), Groupon (GRPN), Humana (HUM), Kelly Services (KELYA), Meet Group (MEET), Michael Kors (KORS), Office Depot (ODP), Radware (RDWR), Southern Company (SO), Tecnoglass (TGLS), Vitamin Shoppe (VSI), Wolverine World Wide (WWW)
After the close: ADT (ADT), CarGurus (CARG), Darling International (DAR), ePlus (PLUS), Farmer Brothers (FARM), Green Dot (GDOT), Hostess Brands (TWNK), IAC (IAC), James River Group (JRVR), Kronos Worldwide (KRO), Microchip Technology (MCHP), Monster Beverage (MNST), News Corp (NWSA), OraSure Technologies (OSUR), Presidio (PSDO), Qualcomm (QCOM), Roku (ROKU), Safe Bulkers (SB), Square (SQ), Take-Two Interactive Software (TTWO), TiVo (TIVO), Woodward (WWD), Zafgen (ZFGN)
Thursday
Before the open: AstraZeneca (AZN), Cardinal Health (CAH), DR Horton (DHI), Endo International (ENDP), Fly Leasing (FLY), Gannett (GCI), Johnson Controls (JCI), Magna International (MGA), Nomad Foods (NOMD), Olympic Steel (ZEUS), Perrigo (PRGO), Scientific Games (SGMS), Telus (TU), Worldpay (WP)
After the close: Activision Blizzard (ATVI), Bojangles’ (BOJA), Clearwater Paper (CLW), Dropbox (DBX), Funko (FNKO), Hanger (HNGR), Hertz Global Holdings (HTZ), InnerWorkings (INWK), Joint (JYNT), One Stop Systems (OSS), PDF Solutions (PDFS), Redfin (RDFN), Skyworks Solutions (SWKS), Trade Desk (TTD), ViewRay (VRAY), Walt Disney (DIS), Yelp (YELP)
Friday
Before the open: Advanced Drainage Systems (WMS), Best (BSTI), China Automotive Systems (CAAS), Essent Group (ESNT), Ferro (FOE), MoneyGram International (MGI), Potbelly (PBPB), Radnet (RDNT), Starwood Property Trust (STWD), TC Pipelines (TCP)
After the close: AthenaHealth (ATHN), MidEquities Realty Trust (MRT)
Today’s action has been mixed with Tech taking a hit and being the weakest link. As I head to press, the Dow is up 137 points to 25,408 while the S&P 500 is adding 8 points to 2,731. The Nasdaq is lower by 62 points to 7,294 and the Russell 2000 is off 5 points to 1,542.
I could have 2 new trades ahead of the closes so stay locked-and-loaded. I’m still doing the numbers and running the math…
Momentum Options Play List
Closed Momentum Options Trades for 2018: 42-16 (72%). All trades are dated and time stamped for verification. New subscribers can look at the past history to see how the trades have played out or to research our Track Records. Do not risk more than 5% of your trading account on any one trade but do try to take all of the trades.
Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Stops” entered to close any trades or “Limit Orders” in your brokerage account unless I list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position or if a new trade comes out. Otherwise, follow instructions at all times in the Daily updates.
Morgan Stanley (MS, $45.80, down $0.15)
MS November 50 calls (MS181116C00050000, $0.10, flat)
Entry Price: $0.60 (10/3/2018)
Exit Target: $1.20
Return: -83%
Stop Target: None
Action: Support is at $45.50-$45.25. Resistance is at $46.50-$47.
Consumer Staples Select Spiders (XLP, $55.88, up $0.76)
XLP January 58 calls (XLP190118C00058000, $0.55, up $0.10)
Entry Price: $0.35 (9/20/2018)
Exit Target: $0.70
Return: 61%
Stop Target: 38 cents (Stop Limit)
Action: Fresh resistance is at $56-$56.25. Rising support is at $55.25-$55.