By: Elliot Turner
After the bell yesterday, Intel (INTC) reported a monster earnings beat. Expectations called for $0.30 per share and the number checked in at $0.40 per share. JP Morgan, while beating the headline earnings number by $0.14 cents, saw revenues fall short of the $27 billion estimate. Preopen, Intel both stocks are trading down slightly. This is largely a reflection of the lofty expectations coming into earnings season. We learned that when Alcoa missed and took a a nearly 11% haircut as a result. In this resilient and strong tape, the risk in missing is far greater than the reward in beating.
For Intel, it will be key to hold above the $21/21.25 area for more upside. The stock has essentially traded in a $2 range since September. A hold above that range will have very bullish implications. As for JP Morgan, the $43 area should offer a first level of support. If the stock trades down to that area, watch price action for support. On the upside, $45 offers the first resistance. If the stock can hold positive after this earnings report, we might very well see a break through that area.
Yesterday the SPY printed a new 52-week high by a penny before selling off on some volume. We need to see the SPY hold above $115.00 in order for the market to push higher. See if we can hold yesterday’s low for a move higher. If that low fails to hold, the next support is in the $113/113.25 area. With options expiration today, there might be some strange moves. Remain patient and trade compelling setups.
RedDog will be back on Tuesday with the morning game plan. Good luck today, and enjoy the long weekend!
