Try it Again Tuesday - What Will it Take to Move the Markets Higher?

If it's Tuesday, we must be at the week's highs.

Obviously, we're still bearish and the news we've been discussing this morning in Member Chat certainly hasn't changed my opinion on that. Back on August 7th (first Tuesday of last month), I said we were about $700Bn in stimulus short of what we need to support S&P 1,400 and we knew we would have to wait a month to see how much we got from Draghi and Bernanke but, so far, and with Ben already out of the way, we have zero.

At $10Bn per S&P point that puts our fair value all the way down to 1,330 but keep in mind that the $500Bn we did get only lasts for 6 months so more like 1,310 at this point without a proper commitment by the ECB or Fed this week. Even 1,310 would be up 50 from the June lows and it would represent a neat 2/3 retracement of the rally since then. Our $25,000 Portfolio has, if anything, gotten more bearish as we dragged along the top but another thing we've done each Tuesday has been to take aggressive bullish positions to cover ourselves IN CASE someone actually does put up the cash needed to goose the markets over our breakout levels (see Friday's post for current positions in the virtual Portfolio and our levels).

On Tuesday, August 14th, our trade ideas were as follows:

2 FAS Oct $105/115 bull call spread at $2, selling 1 BBY 2014 $18 puts for $3.25 for net .75, now $1.80 – up 140% (trade stopped at 150%) –
2014 SHLD $32.50 puts sold for $7.50, now $6 – up 20%
6 EWJ Jan $9 calls at .53, selling 1 BBY 2014 $18 put at $3.25 for a net .07 credit, still net $2.60 credit – down 3,800% (trade stopped at up 1,000%)
TNA Oct $55/61 bull call spread at $2.50, selling Oct $42 puts for $1.90 for net .60, now $1.80 – up 200% (stopped at 200%)

While we do go into these trades looking for about 300% (not the short put, of course), when we make a quick 100-150%, we take it off the table and move on to what we call "fresh horses." It should be noted, however, that despite the now highly negative result on the EWJ trade, it now makes a terrific new entry as you can buy those 6 Jan $9s for .44 ($2.64) and sell the BBY 2014 $18 puts, which had dropped below $3, for $4 for a net credit of $1.36 and it could give you a tremendous early pay-off if BBY does get bought out. The EWJs topped out at .63 the same day the short puts bottomed out at $2.90 for net .88 so keep those expectations realistic and you'll do fine on trades like this.

The following Tuesday, the 21st, our new trade ideas were:

2 FAS Oct $107/117 bull call spreads at $2.05, selling 1 BBY 2014 $15 puts for $3.75 for net .35 is now net $1.30 – up 271% (stopped at up 334%)
AGQ Oct $38/45 bull call spread at $3.10, selling BTU 2014 $20 puts for $3.60 for net .50 credit, now .75 – up 50% (stopped up 236%)
3 DIA Oct $135 calls at $4.05, selling 1 HPQ 2014 $20 put for $3.80 for net .25, now -$2.90 – down 1,260%

As I mentioned last Tuesday, when you live by the leverage, you die by the leverage but we took the money and ran on the first two trades, which more than paid for the losses on the third (even assuming you didn't stop out at some point more sensible than down 1,200%) and decided that, since that trade was so "off" that it would be the best one to use for our upside trade last week but we dropped to:

2 DIA Oct $135 calls at $1.23, selling 1 HPQ 2014 $15 put for $2.30 for net .16, now -.80 – down 600%

Clearly the Dow is not being very kind to the bulls and clearly, if you are a QE believer, this is still a fun way to play the upside – especially if you REALLY want to own 100 shares of HPQ for net $14.20, which is a 16% discount off the current price. So your worst case is owning HPQ for a 16% discount and your best case includes pocketing $1,000 at Dow 14,000 on some happy economic news between now and mid-October. And, of course, if you make that $1,000, then your net cost on 100 shares of HPQ is down to $420!

You can see from the Big Chart why we were not too keen on adding more upside hedges in the past two weeks as that top is looking more and more solid every day and it's only been the fear (for the bears) of massive Central Bank intervention that kept us from being much more bearish in our main portfolios. Even our Income Portfolio (Members Only), which is long-term bullish, was augmented with a TZA spread to provide us with an additional $35,000 in downside protection on a 10% drop in the Russell (back to 735).

Yesterday, we were discussing strategies for setting up a hedge fund and we were forced to conclude that the best thing to do with cash is – STAY IN CASH! This is certainly not a good week to deploy capital in any kind of quantity and, for small positions, the downside is much more attractive than the upside to this market at the moment. Should there be an actual infusion of QE/Stimulus into the Global Economy, then we have plenty of time to BUYBUYBUY but, until then – we remain extremely skeptical.

On the whole, we'll be watching and mostly waiting this week to see how it all plays out.

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stjeanluc

Member

September 4, 2012 8:45 am

Oil Lines

R3 – 98.85
R2 – 98.07
R1 – 97.62
PP – 96.84
S1 – 96.39
S2 – 95.61
S3 – 95.16

Phil

Author

September 4, 2012 8:52 am

Good morning!

Dollar back over 81.30 and the RUT back to 812 (/TF) and the Dow failed 13,100 (/YM) and oil is back at $96.50 (/CL) and gold is just failing $1,695 (/YG) so exactly what we were looking at yesterday morning before all the BS manipulation – which is an excellent indicator of what total BS it was.

Let's watch that Dollar line very closely but, as I said this morning – I can't see the fundamental case for the Dollar breaking below the line on Jack's excellent chart (thanks Diamond):

So, technically, it does look like we're heading to a massive breakdown but the TA reflects the bets that are being made and, since Draghi's original comments, the betting has been one-way against the Dollar.

'The crowded long dollar trade is no more," writes Sober Look, as CFTC data shows currency speculators last week turned net short the greenback for the first time in nearly a year. The CFTC information can be handy when it gets to extremes. A year ago, specs were leaning heavily to the short side (amidst the U.S. credit downgrade) just as the dollar was set to take off on a 9-month, 13.5% run higher.

Keep in mind how devastating a rising Dollar is for commodities and equities – at least in the short-run.

Pharmboy

September 4, 2012 8:57 am

Holy shmoly….MRX was bought…..Wow…whoa….yipee!

1020

September 4, 2012 9:07 am

Congrats on MRX folks!

September 4, 2012 9:15 am

Oh yes, fantastic play on MRX Pharm, especially getting more bullish after earnings.

September 4, 2012 9:19 am

Thx Phil. As I have been noting, <$10B is that sweet spot right now in Pharma/Biotech. M&A with big boyz will be few and far between, but those in that range are fair game for cash rich companies.

September 4, 2012 9:33 am

81.29 – about the only number that matters today.

Euro fell to $1.256 but bounced there, Pound $1.587, 78.37 Yen not making the Nikkei happy at 8,770 either.

Japan suspends ¥4.1T ($52.3B) in tax grants to municipalities due to Parliament not looking like it will pass a key debt-issuance bill by the end of the parliamentary session in four days. In response, the BOJ will inject a record of ¥1.9T/day into the banking system in order to keep short-term rates down ahead of an expected increase in loan requests because of the grant delay. – This is Japan's rapidly approaching fiscal cliff.

Gasoline fun to short below $3 (now) on /RB. Refineries seem to be coming back on line and not likely we broke any summer demand records this weekend with gas at record highs.

September 4, 2012 9:38 am

Gotta be a bit concerned that AMZN and AAPL popped at the open and the Nas is still red. Often they use the leaders to mask a broader exit.

lflantheman

MoMo trade: Bought the AMZN September 7 250 puts back for 3.34 (sold Friday for 4.50). Alternatively, you could just put a stop loss on these if you like, but I choose just to take the 20%+ this morning and leave the trade.

Notes:
SQQQ – DD at $1.50
SCO – DD at $2.50
PCLN – Net is $5.00

September 4, 2012 9:41 am

Same notes as above.

newt

September 4, 2012 9:47 am

Pharm: Hi- What are your thoughts on LLY? I have Sept 41 P's. TIA

September 4, 2012 9:49 am

VIX 18.50 – Very Interesting!

Oil and gasoline dropping nicely. Dollar 81.345 – if the Dollar fails, it's good to get very tight with Futures stops. RUT just bounced off 810, Dow off 13,050.

S&P Futures flirting with the 1,400 line at 1,403, which is 1,405 on the index.

September 4, 2012 9:52 am

LLY/newt – most likely, those are dead. I have them as well in one account. Just holding on. IF we get a sell off, those should move and we can exit.

Last week's AAPL and AMZN puts expired worthless. I closed this week AMZN short put.

neetcorp

September 4, 2012 9:57 am

Pharmboy
STEM jump up. Good deal?

September 4, 2012 9:58 am

Pharm- thanks- i was stewing on rolling, letting them burn in a of hope of recovery…..

September 4, 2012 9:59 am

GTHP – DD on my stock for 70c.

September 4, 2012 10:01 am

STEM/neet – that is a shooting star forming and those are signs that it will backfill the gap. Then maybe jump in. Not really interested. They are a stem cell company, and while there are some interesting and very good science going on, it is too early for me to jump into that sector. The spinal chord injury is a very early trial, so there are many things in play. Wait and put on a watch list for a pull back.

September 4, 2012 10:08 am

Transports dropping hard and fast (4,970), SOX no better at 393 – nothing to be bullish about until/unless they retake 5,000 and 400.

AIG making year highs of all things.

No changes to Portfolios yet – more of a watch and wait kind of day.

At the open: Dow -0.13% to 13074. S&P -0.11% to 1405. Nasdaq -0.07% to 3065.

Treasurys: 30-year -0.38%. 10-yr -0.18%. 5-yr -0.08%.

Commodities: Crude +0.07% to $96.54. Gold +0.31% to $1690.55.

Currencies: Euro -0.17% vs. dollar. Yen +0.16%. Pound +0.1%.

10:00 AM On the hour: Dow -0.16%. 10-yr -0.13%. Euro -0.02% vs. dollar. Crude -0.35% to $96.13. Gold +0.54% to $1694.35.

Market Preview: Equity markets look like they're coming back from the long weekend still in the their summer slumber, with S&P Benchmark futures -1%. Now that Jackson Hole's a mere memory, the focus is on Mario Draghi at the ECB, who's ratcheting upexpectations of renewed bond buying. Medicis surges 38% on news it's being bought by Valeant, which is +12.7%. Later: ISM Manufacturing Index, Construction Spending

US Aug PMI Manufacturing rose to 51.5 vs 51.4 in July. Output 51.9 vs. 51.7 in July. New Orders 51.9 vs. 51.0 in July. Employment 52.4 vs. 52.7 in July. (PR)

Aug ISM Manufacturing Index: 49.6 vs. 50.0 consensus and 49.8 prior. Prices index 54.0 vs. 39.5 prior. Employment 51.6 vs. 52.0. Inventories 53.0 vs. 49.0. New orders 47.1 vs. 48.0.

July Construction Spending: -0.9%, vs. +0.4% expected, +0.4% prior.

Canada's RBC PMI for August comes in at 53.04, essentially unchanged from July. RBC chief economist Craig Wright notes the contrast between the Canadian manufacturing sector and the rest of the world, and is particularly encouraged by new export orders rebounding from July's dip.

If September holds to form and shares turn lower, investors may want to buy the dip. Since the DJIA's 1896 creation, when stocks have been higher YTD through Labor Day, they've tacked on to those gains by year-end 70% of the time, writes Mark Hulbert.

Capital flows out of Spain have reached 50% of GDP on a 3-month rolling basis, says Nomura, compared with Italy now at 15% and Indonesia peaking at 23% during the worst of the Asian crisis.

More on Spain from Nomura: Heavy capital flight (previous) is in a "category of its own," say the bank's analysts, who also note foreign selling of Spanish securities rising to 19.4% of GDP in Q2. Daiwa chimes in, claiming last Friday's use of state funds to bolster Bankia could be the last straw pushing the country to seek a full bailout.

Spanish jobless claims +0.8% M/M in August after four months of declines. Claims +12% to 4.63M Y/Y. The M/M increase is the first time claims rise less than 1% in August, which is significant because the month is among the worst for hiring. The data provides hope that surging unemployment is leveling off.

Is this a "Wile E. Coyote moment" for the aussie, asks Macquarie's Brian Redican, pondering Fortescue's slashing of capital spending plans. The impact on the economy of a rapid decline in mining investment will be severe, he says, and take no comfort from still-large spending plans on the books – as cash flows evaporate, these too will be cut.

Australia's Fortescue joins rivals BHP and RIO in announcing slashed capital spending plans amidst sliding demand and pricing for iron ore. The move comes just days after the company's CEO said all was well in the business and the company expected to triple production within a year. Shares fell 4.2% in Sydney.

Beijing August home sales more than doubled Y/Y as developers raise prices, putting to question exactly what need is there for the government to remove property curbs. August is typically a slow month for real estate in China, so more will be known after the important "golden September and silver October" period.

As trade deterioration continues, Beijing considers raisingexporter tax rebates to 17% from the current 13-15% range, according to sources. Certainly no bazooka, the move would be in line with Premier Wen's pledge of "fine tuning" to assist the slumping economy

More on the Goldman (GS) downgrade: Giving Goldman kudos for its "best-in-class risk management," JPMorgan nevertheless sees shares as too rich for today's poor investment banking environment, and ranks the bank dead last (as a buy idea) among global IBs. Shares are richer this morning, +1.3%.

Dahlman Rose cuts its outlook for metallurgical coal for Q4 and full-year 2013 to $180/mt FOB and $200/mt FOB, respectively. The cut in prices weighs on its estimates, resulting in downgrades (I, II,III) to the names most heavily exposed to met coal markets: BTU-1.8%, ANR -1.8%, WLT -1.9% premarket.

Airline stocks open weak with a new report from an industry group highlighting that profit margins on major carriers fell to -1.5% for the first half of the year, compared to -0.4% a year ago. The problem in a nutshell is that expenses in the sector keep outrunning modest revenue gains. Decliners: LCC -3.2%, UAL -1.8%, DAL -1.7%, LUV-1.5%.

StemCells (STEM) surges 18% premarket after yesterday saying its HuCNS-SC treatment restored sensation in two out of three patients who were left paralyzed by severe spinal cord injuries. The developments, which came in a Phase I/II trial, represent "the first time that neural stem cells have been transplanted as a potential therapeutic agent for spinal cord injury." (PR)

Subprime auto lending is back and better than ever, with low-credit borrowers receiving 25.4% of all new car auto loans, up from 22.3% a year ago, and higher than the 2007 peak of 25%. Among those leading the charge is Capital One (COF), nearly doubling its market share in new car loans to 4.4% in Q2.

Chrysler (FIATY.PK) August U.S. sales: +14% to 148,000 vehicles, with the sales pace cooling from the level seen earlier this year. The automaker says volume increased 25% at the Chrysler brand, 34% at Fiat, 13% at Dodge, and 5% at Jeep. Over 25K Dodge Rams were sold, marking a 19% Y/Y increase.

Ford (F) August U.S. sales: +13% to 197,249 vehicles, marking the automaker's best August sales haul on record. Passenger car sales were up 7% to 62,650, including a 35% gain in retail sales: Fusion +21.0% to 21,690, Focus +35.3% to 19,073. Utilities +27.8% to 63,225: Escape +36.8% to 28,188, Explorer +33.0% to 13,168. Trucks +6.1% to 71,374. (PR)

Toyota's (TM) new RAV4 electric vehicle catches a positive review from The New York Times that raves about the electric drivetrain from Tesla Motors (TSLA) that turns the utility wagon with its 76 equivalent mpg into a "high-riding 4,032-pound electric beast." If the model helps turn public opinion around on the power of EV engines, the entire industry could get a lift and Tesla Motors could be set for a smooth ride.

Barclays Capital's Anthony DiClemente takes his rating on News Corp. (NWS, NWSA) up to Overweight, contending that the company's entertainment business alone is worth more than its market cap. After crunching the numbers, the analyst valuates the entertainment business at $24-$25 a share and the publishing business at around $4 a share, potentially giving investors a nice discount in front of a planned split of the company.

The Labor Day weekend didn't lift the movie industry out of its summer doldrums at the box office, but execs remain optimisticthat the industry is still in good shape. Though the Olympics and the Colorado theater shooting both impacted attendance, YTD box office totals are still running ahead of last year's totals and a number of movie franchises have blockbuster sequels lined up. Studios: TWX,DIS, LGF, VIAB, SNE, DWA, CMCSA. Operators: RGC, CNK, MCS,RLD.

Amazon (AMZN) signs an agreement with EPIX that will help it land thousands of new movie titles and TV episodes from major studios for its Prime Instant Video service. With the new deal in hand, Amazon has now doubled its available titles over the last year.

Pricing pressure for the carriers: RadioShack (RSH) and Leap Wireless (LEAP) unveil their long-rumored (I, II) prepaid mobile service. The service, which will rely on the RadioShack brand and initially feature two Huawei phones, offers 1,000 minutes for $35/month, and unlimited voice and 1GB of data for $50/month. MetroPCS (PCS) recently cut the price of its unlimited prepaid plan to $55/month. (PR)

jjennings

September 4, 2012 10:09 am

Phil – what's your target on /RB. Do you set trailing stops on /RB or just mental stops? I seem to find my stops always get triggered in random spikes before crashing.

September 4, 2012 10:16 am

Pharmboy
What's good on GTHP? Thanks.

2can

September 4, 2012 10:17 am

/Oil's bouncing at S2

hemas03

September 4, 2012 10:20 am

Pharm, would you mind sharing your opinion on CERS? I've held some shares for over a year and made a nice profit. Thanks in advance.

September 4, 2012 10:21 am

GTHP/neet – not sure what you mean. GTHP has a non-invasive detection med. device for cervical cancer. Instead of a pap smear, women can have this test. Read about it here.

Wheee on oil ($95.65) and gasoline ($2.979)!

STEM/Pharm, Neet – I think the news above is very big deal if true. Too bad they have no options, would be a very fun long.

Gasoline/JJ – I don't really do targets. $3 was too high so, at $420 per penny, per contract, I figured they were good for a rejection, along with oil at $97.50, of course. They almost always try to flush the stops before taking out a futures position – we'll be doing a lot of Futures stuff in Vegas. If you can't afford to lose and must use hard stops – then you really can't afford to play the futures and, of course, one like gasoline should be avoided like the plague! Generally, if I want to short oil at $97.50, I'll start with 1x at $97.40, DD to 2x at $97.55 and then stop out at $97.60 with a .15 loss on 2x. Then I'll either re-enter 2x short at $97.49 with a stop at $97.55 or at $97.90 I'll start the sequence again with 2x and go to 4x and maybe 8x before giving up (and if you were wrong by $1 and it's still going up on you – you'd better give up!). That is, of course, very expensive as you can lose 8x .15 or .25 but, on the other hand, sometimes you make 8x x $1 (like now) or $2 and you feel very good about yourself.

By the way, keep in mind that the ONLY reason you DD is to get half out even – greed will always kill you in the futures. Once you get back to even on 1/2, THEN you can set some stops to lock in profits on the rest.

Speaking of Futures – we have the Dollar at 81.28 so not the Dollar's fault we're dropping. Oil bouncing off $95.50, Dow bouncing off 13,000, S&P can't get back over 1,400 but main index bouncing right there, Nas off 2,750, RUT failed 808 and should test 805 so beware the weak bounce at this point and Wheeeeeeeeeeeeee!

jromeha

September 4, 2012 10:23 am

Pharm – posted this at 0500ish on the previous page.
"Pharm – just looking at the MRX pick… THANK YOU! You and Phil are GOLDEN GODS! hahahaha. It has been an awful week for me in Afghanistan but this just turned it all around! WOOOOOOOOOOOOHOOOOOOOOOO! Give me your paypal, I got 100$ on your bar tab in Vegas since I wont be able to come in Nov…"

September 4, 2012 10:31 am

jro….UR very welcome. Good to know that a few of these are working for us. Appriciated, and not necessary though. You can email me at pharmboy123 gmail.

September 4, 2012 10:32 am

Futures – Thanks for the strategy. I tend to follow your entry strategy, but I always fall into the greedy bastard camp and mess up the exit – I try to set trailing stops to force myself out with a profit. Will there be any sort of live meeting broadcast for those unable to make Vegas?

September 4, 2012 10:33 am

NTE making new highs!

Very cool on MRX, Jrom – congrats.

FB below $18!

VIX almost 19.

CLF falling off a cliff.

TASR not down as police prepare for rioters.

AOL new lows – how low can they go?

AAPL still green – God help us all if they decide to fail $666 and add to the downward momentum….

SODA flzzles to new lows.

RCL cruises to new lows.

81.31, oil $95.25 – nat gas UP to $2.87 for some reason but gasoline falling hard and fast at $2.9775.

LAZ reclines to new lows.

Cord snaps on BG and they fall to new lows.

September 4, 2012 11:01 am

Pharm – sent you an email from my mil account. Let me know if you get it. Thx again!

September 4, 2012 11:10 am

As a rough number – getting back above 0.55% losses on the indexes would be a weak bounce and -0.40% would be a strong one.

SOX down a whopping 1.75% so -1.4% is weak and -1.05% is strong and it's good to watch SOX and Transports (-1%, so -0.8% and -0.6%) since they aren't really manipulated the way the headline indexes are (although there is spillover manipulation from the mains, of course).

Dollar still very weak (81.345) so shouldn't expect too much of a sell-off but we're just laying around the point where we should be bouncing and that's a bad sign.

Europe is down about 1.25% and looking to close at the day's lows but the Euro is still pretty strong at $1.256 and the Pound is $1.588. 78.34 Yen is not making the Nikkei happy – down to 8,730.

AAPL right at $666 but holding

September 4, 2012 11:11 am

MoMo trade: Bought to open LULU 5 Sept 22 65 calls for 4.50.

dflam

September 4, 2012 11:13 am

Phil: I sold BBY 2014 $13P for $1.61 for net of $11.39. Do u think it's a good move to buy them back at $2.15 and sell 2014 $15 p for $2.77 for new net of $10.77?

rustle123

September 4, 2012 11:17 am

RCL/Phil

RCL is still not close to lows. Low is 18.70.

gandhjo

September 4, 2012 11:20 am

lflan
what is the reasoning behind the LULU calls? Are you planning to hold it through earnings on 9/6?
TIA,
gandhjo

September 4, 2012 11:22 am

LULU trades is a simple momentum play. Probably out Thursday or before. My source says earnings Sept 7 at 9 a.m.

terrapin22

September 4, 2012 11:23 am

Phil / V – Sept 120 puts down about 50% with 2 weeks to go. roll?

September 4, 2012 11:24 am

It seems the only one who stands up to Joe Kernen is their political correspondent, John Harwood. A couple weeks ago, Joe said "Isn't hard for Romney to win if it's 99% vs 1%
John said "then Obama would have 99% of the vote right now"

Joe responded "well you have 8% unemployment"
John responded "then he'd have 92%"

And today Joe was talking about how we're not better off than 4 years ago and unemployment is higher than we Obama got into office. John responded that when Obama got into office we were losing hundreds of thousands of jobs per month and we had 29 months straight of job growth. Even though it's not as robust as he'd like, it's still much better. Of course when confronted with facts, Joe Kernen didn't say much after.

September 4, 2012 11:39 am

Germany finishes down 1%, France down 1.4%, London down 1.5%, Spain up 0.7% (about 1/2 of highs) and we should at least get our bounce here (assuming it was EU funds doing a lot of the selling).

Volume 37M on the Dow at 11:30 and they are righ at 13,000 so 20 DIA weekly $128 calls at $2.15 in the $25KPs have about .20 in premium and can give us a nice ride up with a stop at $1.90 – so risking $500 (of our gains) to cover a bounce.

lionel

September 4, 2012 11:50 am

Pharm/
Could you take a look at ACAD for me?
I am looking at selling 2.5 Puts and buying Mar 2013 and 2.5/5 Mar call spreads
Thanks

Oil testing S3 again

September 4, 2012 11:51 am

AMZN / Phil – You really wonder how they can keep making these deals for content on the Prime Instant Video. I see that they now have a deal with Epix. They have to ve spending some money for these deals – at least as much as NFLX or even more to lock up exclusivity. For $79 you get free shipping and unlimited streaming of video. At least NFLX charges for the video streaming – with AMZN it's basically free once you go over the $79 of shipping… And the free books every month, etc… It's really a logical short if logic had any value in this market!

ajaytoo

September 4, 2012 11:53 am

Phil/GLD – Phil, what's the hope with the GLD Sept weekly puts? I'm surprised we held these over the weekend with the expected premium decay.

September 4, 2012 11:54 am

AMZN/stjeanluc

Amazon has hinted it is changing it's prime membership either making it more expensive soon or having a tier feature in it.

September 4, 2012 11:57 am

That's not bullish – ISM analysis:

http://www.bespokeinvest.com/thinkbig/2012/9/4/ism-weaker-than-expected.html

September 4, 2012 11:59 am

AMZN / Rustle – That would make a lot of sense. Watch the stock take off when they raise the price by $10!

September 4, 2012 12:00 pm

MoMo : I just bought 5 more of the LULU Sept 22 65 calls for 4.70. We have now a total of 10 at ave. 4.60.

September 4, 2012 12:03 pm

AMZN/stjean

Remember though, this is a company that doesn't care if they make a profit. That's why the scare competitors so much. And it doesn't seem to hurt their stock price as idiots think revenues and profits are the same thing just like people thought FB users and profits were also the same thing. Didn't work out well for FB so far after the IPO.