Charging Higher, A “Dear John” Letter This Morning, and Hold Off on the Urge to Buy Here

Charging Higher

Here’s a good trick: American Express (AXP) announced earnings last night that missed expectations on the top and bottom. The stock should be trading lower, right? Shares of AXP are trading 3% higher this morning, and it’s all about the company’s outlook.

The company’s management forecast for 2024 included robust growth in revenue as you and I continue to swipe those cards. The positive outlook has AXP shares preparing for a bullish breakout that will lift them above $200 and new all-time highs.

A “Dear John” Letter This Morning

Oh boy, Spirit Airlines (SAVE) shares are trading at $6 this morning – that’s a down move of 18% - after the company opened their mail this morning to find a note from JetBlue (JBLU) informing them that their merger agreement may be canceled on Sunday.

This is the reason I warned of trying to buy SAVE shares last week: this deal feels closer to being canceled than done after the DOJ was able to halt things through the courts. I’m considering a short-term put on the stock as I see a price that starts with a “4” in the near-term future for SAVE.

Hold Off on the Urge to Buy Here

I just wanted to drop a friendly note here about IBM (IBM). The stock rocked its way all the way up to $197 yesterday after the company’s earnings report on Tuesday. If you caught my YouTube video and didn’t buy shares ahead of the earnings you may be thinking “I’ll just grab a few shares here,” maybe hold on that idea.

IBM shares saw what I call a “Crescendo Moment” yesterday. I’ll explain that concept deeper on Monday, but just know that it suggests that you’ll have a chance to buy shares at lower prices in the near-term future.

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About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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