Tuesday, January 18, 2011

It is Apparent The Market Survives On Bolivian Marching Powder (SPY)

A Bull on Marching powder!
Yeah i said it. Today was a very good example of BOTFD, you should all know what it stands for.... Buy The .... Dip. The Bolivian marching powder was apparently strong this morning....

Anyway, of course Apple beat this after noon, and IBM beat as well and of course the nasdaq melted up all day day put in day highs all afternoon going eventually going green erasing the Steve Jobs' health issue like it never happened. The Nasdaq put in year highs of 2346.50 after hours.. never intra day, that is no fun....

Nasdaq futures 1 min . not the march
Apple's stock managed to close a bit lower, though per my pervious post last night on the "ultimate circuit breaker", highlighted apple would most likely end up nearly flat on the day after they blow out EPS.. apple is pegged at 345ish after hours.. she closed 248ish Friday. Not a bad move 326 to 344... my trade on the Economic burn pretty much sums that up... as for the numbers here they are

Apple reported Q1 EPS $6.43 vs. consensus $5.38
Reported Q1 revenue $26.74B vs. consensus $24.38B
Apple sees Q2 EPS about $4.90 vs. consensus $4.43 
Sees Q2 revenue about $22B vs. consensus $20.62B
Apple sold 16.24M iPhones in Q1, up 86% vs. last year
Apple sold 19.45M iPods during Q1, down 7% vs. last year
Apple CEO Steve Jobs said, "We are firing on all cylinders and we've got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can't wait to get their hands on."
IBM Q4 EPS is as follows
IBM reported Q4 EPS $4.18 vs. consensus $4.08
Reported Q4 revenue $29B vs. consensus $28.26B
IBM reports year end services backlog $142B via conference call
IBM targets operating EPS of $20 in 2015
IBM Management stated, "We would expect to have mid-single-digit growth in our services business profitability." 
As you can see when we are in a credit bull market, the big caps can do no wrong.. If they cannot mint money then there is something seriously wrong with their management and business model. 

Remember Bolivian marching powder is only good for so long until you get the hang over and the party ends and your searching for more "performance enhancers" cough pomo, quantitative easing cough....... then crash... 

Tomorrows calendar 
Jan 1908:30Housing StartsDec565K         550K     555K
Jan 1908:30Building PermitsDec540K560K    544K    530Kvia