Thursday, July 25, 2013

More Downside For Crude Oil

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West Texas Intermediate fell for a second day, extending the biggest loss in more than a month as U.S. crude output surged to a 22-year high. READ

West Texas Intermediate fell for the second day in three after fluctuating amid data showing a slowdown in China’s manufacturing in July and shrinkage in crude stockpiles in the U.S., the world’s largest oil consumer. READ

In addition to pushing the WTI market into backwardation, these developments are helping to raise Midcontinent spot prices, narrowing the spreads between North Sea Brent and WTI and between Bakken and Light Louisiana Sweet (LLS) crude oils. However, the resumption of syncrude imports and an anticipated refinery switch by BP Whiting to heavier Canadian crude later this year could take upward pressure off prompt WTI prices, flattening the forward curve. LINK

click on chart to expand images

Tuesday, July 23, 2013

Apple Earnings Follow-up

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 Apple forecast revenue of $34 billion to $37 billion this quarter, slightly below Wall Street's average projection of $37.04 billion. Apple earned $6.9 billion, or $7.47 a share, on revenue of $35.3 billion. That compared with a profit of $8.8 billion, or $9.32 a share, on revenue of about $35 billion in the year-ago quarter.
Gross margins came in at 36.9% in the third quarter, sharply below 42.8% a year ago, as Apple sold more cheaper older model iPhones along with the new iPhone 5 model, sales rose 51% in the United States from a year earlier, and 66% in Japan.
Suggest entering long Apple position around $400.

Prior Apple Post

Apple Reports Earnings

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Apple  reported its first quarterly earnings decline in nearly a decade in April, and investors since then have been baking in a fair amount of weakness for the June period. It's expected to report another drop in earnings along with flat sales on Tuesday afternoon, as the iPhone 5 faces stronger competition from newer smartphones, with some consumers still flocking to older, lower-priced models.

For the June period, Apple is expected to report earnings of $7.34 per share on revenue of $35 billion, according to consensus estimates, it earned $9.32 per share on revenue of $35 billion for the same period last year. Apple itself projected gross margins in the 36%-37% range for the period. The company has not reported a quarterly gross margin below the 36% mark since the '09  March quarter.

On the technical side, the $380/$390 level looks like it has formed a 'Double Bottom' and most of the selling has been seen.   With reasonable expectations, low sentiment and compelling valuation traders/investors are looking for some positive news to move the stock.

 Schaeffer link

Monday, July 15, 2013

Crude Oil Heading Lower

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Oil at $50 by end of year Joe Petrowski, CEO of Gulf Oil, explains why he sees oil headed much lower than they are now.

John Kilduff, Again Capital, and Brian Levitt, Oppenheimer Funds, discuss the recent spike in oil and gasoline.

Fadel Gheit, Oppenheimer analyst, shares his top oil plays right now.