Evening Thread 6/18/12 Ebay

Ebay reported earnings this evening and beat by a penny. (EBAY), today reported that revenue for the second quarter ended June 30, 2012 increased 23% to $3.4 billion, compared to the same period of 2011. The company reported second quarter net income on a non-GAAP basis of $730 million, or $0.56 per diluted share, up 16% year over year primarily due to strong top-line growth partially offset by increased investment in the shopping experience and the impact of acquisitions. GAAP net income of $692 million, or $0.53 per diluted share, reflected a gain on the divestiture of a business in 2012 and increased significantly year over year due to a loss from the divestiture of certain GSI businesses and GSI transaction-related expenses in the second quarter of 2011.


Ebay knifed through support yesterday during the Bernanke selloff but recovered shortly thereafter. It is trading slightly higher in after hours.  I am long and may consider adding here.  Stop goes right below $38.

Wednesday Afternoon

SPX Daily

The S&P500 is grinding up to the high end of the range we've been in for the last month or so. It's a difficult spot to initiate longs unless you have a lot of faith in the breakout theory. I'm stepping aside to see how this plays out. On an intraday basis, S&P futures volume is suggesting a 15-20 point range... and with the low of the day session at 1353ish, the high target area is 1368-1373 (1372-1377 on SPX). Futures are currently trading at about 1367ish and 15min indicators look ripe for selling.

Wednesday Morning

Gator's Chart of the Day: LVS

Las Vegas Sands has been diving since early April and it may not be done yet as it is still above the triple bottom support line but I think there is a short term opportunity here.

LVS Daily Chart (since April)

LVS reports earnings on July 23 so this is a trade I expect to take off (maybe keep a little) before then.  There was better than expected chatter in the WYNN report after market today about Macau not being as bad as had been expected.  I think this is excellent news for LVS and could move the stock on an oversold bounce.  This will be a low risk trade as the stop can be very tight.

The Trade
I will look for an entry shortly after the opening rotation (15-25 minutes) and take a 1/2 position with a stop just below 39.  The low for the last 4 sessions is 39.03 and that appears to be well defined short term support.  If the stock moves higher I plan to add as it passes 41.10.  I don't plan to hold more than a partial position through earnings.  I think the stock can reach 45.50 in the next few days.  That would be a risk/reward of about 1.20 down and 5.00 up.