Earnings for the Week

12:50pm (EST)

Futures were trading on both sides of the ledger ahead of this morning's open, indicating a choppy session. The action hasn't been dramatic as near-term support is holding with the market likely in a wait-and-see mode ahead of President Trump's speech to Congress on Tuesday night.

Larger price swings could come on Wednesday but I expect the action to remain tight ahead of any news. Updates on ObamaCare and taxes will be the main hot topics of interest along with how fast they might be rolled out. The President is meeting with the insurance companies today in DC so the sector could lead the market higher, or lower this week.

Other areas of interest in my playbook are earnings and gold. We already have one earnings trade in play this week and I won't likely take another, unless DDD is a winner. In any event, there are some of the stocks I expect to make the biggest moves this week.

After today's close - Hertz Global Holdings (HTZ), NutriSystem (NTRI), Tenet Healthcare (THC) and Workday (WDAY) will be on the move in after-hours trading.

3D Systems (DDD), Ambarella (AMBR), Domino's Pizza (DPZ), Salesforce (CRM), and SeaWorld Entertainment (SEAS) will announce earnings on Tuesday.

Wednesday highlights include: Best Buy (BBY), Box (BOX), Monster Beverage (MNST), and Shake Shack (SHAK).

Autodesk (ADSK), Costco Wholesale (COST), JD.com (JD), Kroger (KR), Scientific Games (SGMS) and Wingstop (WING) will confess their quarterly results on Thursday.

Big Lots (BIG) reports their numbers ahead of Friday's open with shares likely making water-cooler chatter on a possible 5%-10% move.

Elsewhere, Gold ($GOLD, $1,264, up $6) closed above the $1,250 level last week and is zeroing-in on its 200-day moving average and resistance at the $1,260-$1,265 area. Continued closes above the latter would be a bullish development with a clear shot at $1,300-$1,325 in the coming weeks. The 50-day moving average is curling higher and the 100-day moving average is starting to flatten out.

Turning to the market, the Dow is lower by 11 points to 20,810 while the S&P 500 is down a point to 2,366. The Nasdaq is off 2 points to 5,843 and the Russell 2000 is up 5 points to 1,399.


GoDaddy (GDDY) Earnings on Deck

GoDaddy (GDDY) Earnings on Deck

1:10pm (EST)

Shares of GoDaddy (GDDY, $36.74, up $0.40) will be on the move in extended trading as the company is set to announce earnings after today's closing bell. The chart looks bullish as all of the major moving averages are in solid uptrends. The 50-day moving average is especially showing a nice curl and represents near-term support at $36-$35.50. Resistance is at $36.75-$37.

The company is expected to earn $0.09 a share on revenue of $485 million. The high estimate is pegged at a whopping 10 cents higher for a profit of $0.19 a share. The low estimate has GoDaddy earning $0.03 a share. This equates to a possible headline of a 10 cent beat or a 6 cent miss.

GoDaddy has topped estimates in three of the past four quarter by two and three cents, twice, sandwiched with a miss by four cents.

The option market is pricing in a possible 7%-10% move with the near-term February call and put options. The GDDY February 37 calls (GDDY170217C00037000, $1.20, up $0.20) and the GDDY February 36 puts (GDDY170217P00036000, $1.00, down $0.15) are going for $2.20, together, and expire this Friday.

If shares trade above $39.40, or below $34, by Friday's close, the aforementioned options would double from current levels, depending on direction and if you bought the calls or puts. As a strangle option trade, you could offset the risk of being on the wrong side of the trade by buying both options. However, shares would need to trade past $41.40, or fall below $31.60, technically, for the trade to make a triple-digit return.

We are more bullish than bearish on GoDaddy and have the GDDY March 38 calls (GDDY170317C00038000, $1.15, up $0.10) on our Watch List. These call options would give the trade an extra month to play out and would double from current levels if shares clear $40.30 by mid-March.

The 52-week peak for shares of GoDaddy is at $37.40 and why a run past $40 could easily be in the books on a beat-and-raise quarter. Of course, an earnings miss, or lowered guidance going forward, could send shares tumbling 5%-10% to the downside.

VIX Becomes Hot Topic

VIX Becomes Hot Topic

8:00am (EST)

With volatility remaining near historic lows, it has been hard to believe record highs are still in play...if you are listening to the talking heads and slick-talking pros. If you have been reading us, then you know we have stated the low VIX would drive them bonkers. "Ridiculously low" and "the VIX is broken" were some of the dumbest comments we heard yesterday, and it gives us a chuckle knowing how overpaid most analysts really are and how clueless they have become.

The Dow climbed 118 points, or 0.6%, to close at 20,172. The blue-chips held positive territory throughout Thursday while reaching an all-time intraday high of 20,206. Upper resistance at 20,125-20,200 was cleared to open the door for a possible push towards 20,350-20,400 over the near-term. Rising support is at 20,000-19,900.

The S&P 500 soared 13 points, or 0.6%, to end at 2,307. The index made a steady run to 2,311 ahead of the closing bell to set a fresh record high while clearing lower resistance at 2,300-2,325. Support has moved up to 2,290-2,285.

The Nasdaq advanced 32 points, or 0.6%, to finish at 5,715. Tech tested its third-straight lifetime high of 5,722 intraday while clearing upper resistance at 5,675-5,700. The close above the latter gets 5,750-5,800 in play. Support is trying to build a base at 5,675-5,650 with a move below the latter possibly signaling a short-term top.

The Russell 2000 surged 19 points, or 1.5%, to settle at 1,378. The small-caps lead the breakout to higher highs following their run to 1,379 on Thursday. The move and close above upper resistance at 1,370-1,375 was a bullish sign. Fresh hurdles are at 1,385-1,390 with the all-time peak north of 1,392. Support has moved up to 1,370-1,365.

The S&P 500 Volatility Index ($VIX, 10.88, down 0.57) tested a high of 11.53 on the open with lowered resistance at 11.50-12.50 holding. The intraday low of 10.74 split fresh support at 11-10.50.

Gold Looking Bullish

Checking in on Gold ($GOLD, $1,220.80, up $1.40), the yellow metal regained the $1,200 level last week and the major-moving averages are starting to level out following steady declines since early November. Continued closes above the $1,230 level and the 100-day moving average would be bullish for a possible run towards $1,265-$1,270 and the 200-day moving average. Support is at $1,200 followed by $1,175 and the 50-day moving average.

We love trading Gold, to the upside and downside, as our Track Records have shown over the years. We will be targeting the Spider Gold Shares (GLD, $116.13, up $0.29) as a way to play a bullish trade in Gold if shares clear $116.50-$117 and the 100-day moving average this week. A close above the latter could lead towards a run $118-$120 and the 200-day moving average. A close below $114-$112 and the 50-day moving average would stall the current momentum.

The GLD March 119 calls (GLD170317C00119000, $1.20, up $0.10) are the first options on my list as they would double from current levels if GLD clears $121.40, technically by mid-March. These options were active on Friday and open interest is approaching 3,000 contracts.

The GLD March 120 calls (GLD170317C00120000, $0.95, up $0.50) also look attractive as these options would double from current levels if GLD shares are pushing $122 by March 17th. While there are weekly call options to trade on GLD, often times the bid/ ask is wider and volume is lighter. This is why we mainly trade monthly options. The 52-week high for GLD shares are north of $131. If we take action on either or both of the aforementioned call options, we will send out a New Trade Alert.