Earnings outlook and opportunities in the next trading week 

Halfway through the earnings season there are so much opportunities in the market. Yahoo shot up to 29.70(Oct 30 Call Option would have fetched you 4-5 times) and Google closed below 900.

Netflix Inc is announcing its earning this Monday and the stock is already up more than 60% in the last six months. So which way is Netflix headed?  My analysis shows that, there is not going to be any earning surprise and hence I believe the stock will retouch 250 level rather than breaking up 300 on the upside.

With S&P trading at life time highs it is the time to stay invested, equities are going to outperform other asset classes for the next 6 months

Find the right stocks, make the best possible trade and make money!!

Hedge Fund Bullishness on Oil has wiped out the spread between Brent Crude and WTI

Over the last 6 weeks West Texas Intermediate ( WTI ) has been up by more than 11%  whereas Brent Crude is just up by a 5% . This price movement has completely wiped out the spread between WTI and Brent Crude which at one point was as high as $20. Right now WTI is trading at 107.64 and Brent at 108.64.

This price movement is attributed to a stronger dollar and the emergence of US as a major oil producing country.

My trading tip:

Oil moving higher by 12% in a period of 6 weeks tells me that prices are going to come down to $100 in the next coming days. Hence short Oil and Long Equities will be my stand.