The time has come for IBKR to show wallstreet that they are worthy and why anyone should care. Only three weeks after Interactive Brokers went public they will be releasing earnings at the market close tomorrow (Tuesday 5/29). As many investors and traders know, the first earnings report is crucial for the early success of an IPO. I think it is a very bullish sign that IBKR will be coming out with their announcement so quickly after going public and check out the page they set up for the report and conference call. They know what is at stake here and IBKR appears poised to wow.
The chart is starting to take shape (maybe a diamond bottom?) and some of the technical indicators are coming into existence. The RSI below 20 suggests IBKR is extremely oversold, the slow stochastic just gave a buy signal, the 10 day moving average just turned up and the price action looks healthy. IBKR appears to have solid support around $26 but it really all depends on earnings. I like the June 30 calls ahead of earnings because they aren't too expensive with an implied volatility around 40% and buying the stock doesn't seem like a bad idea either.
As my regular readers know well, IBKR invokes thoughts of another stock I can't seem to ever get off my mind. And like IBKR this stock seems to have a low risk entry as of Friday's close:
After a solid breakout on rising volume ICE has pulled back to support near 140. The chart is starting to look like a healthy cup n' handle continuation so I like this pullback as an opportunity to go long or add ICE. I would be happy buying ICE between $140 and $145 if there is an opportunity but my stop would be set at 139.99, in other words it better not go there. I think the previous high is reasonable in 2-3 months but lets get past 153.36 first. By the way, the implied volatility on ICE options has really retreated, they are the cheapest they have been in months...
Monday, May 28, 2007
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