Gasoline is up 20% (.24) in 8 days, merry Christmas!
I think/hope some of this nat gas buying is on speculation and short squeezing rather than on the reality that it now costs 150% more than it did last year to heat homes.
This will not affect today’s consumer sentiment reading but will be a major market bummer if it continues into next month.
Until the report at about 9:30-9:50, expect what will either be a dead market bounce or the start of a very nice Friday rally.
I am going to apologize to Sunoco, they may actually be a better buy than COP but Conoco has made more investments in production while SUN has focused on cutting costs on current production. While SUN may rise faster than COP, I still think COP is the stock for the future.
VLO is really primed to pop at the moment as are THE, SLB, CVX and PTEN. There is a great sale on BP today as the Kuwaiti government is selling $2Bn worth of the stock in Europe. Just like with GNW, you have to wait for the dust to settle but this will be a great buy very soon as well!
NFLX has reached a critical juncture right at $27.50. There is a lot of downward pressure on the stock but it has steadfastly refused to cross this line. They have done a great job bringing costs down and they have low churn despite their much vaunted competition.
========== Trade of the Day ==============
LLY is guiding up but, most importantly, they announced that they have no more patent expirations this decade! I really don’t think they could have said anything better outside of a cure for something popular. This coupled with the Merck collapse makes this my Trade of the Day!
I’m sorry I missed this earlier in the week but there is no time like the present. The stock dropped $1 yesterday on unfounded guidance fears so ignore the first dollar of today’s rally in the stock. We need to give them another quarter to run and also we will pay less of the jump with a longer call so I’m going for the April $50 at $5 (no more than a $2 premium) and I will look to offset it by selling the current $55 or, if we are lucky, $60 as soon as the premium hits…
Game on for gold and oil. From the WSJ : "According to a recent study by the World Gold Council, an industry association of the world’s leading gold-mining companies, investment demand for gold rose 56% in the third quarter and is expected to increase further." According to my "poker with the Saudis" scenario, we should get a pretty nice run to the $520 or so range followed by a sudden, viscous pullback. It snowed in NY this weekend so, of course, that means it has just occurred to many traders that we might use some oil this winter so our oil picks are back in play. PTEN, TDW and OII look ripe for a move and SLB may break $100 if the sector is strong (if VLO and XOM are up). I still love my COP $65s but they have not been loving me so I can’t recommend them. Now we know what’s up with BSX, they just made a bid for GDT, trying to steal it from cheapskate JNJ who had the deal locked but then demanded a discount of 15% from Guidant. Now Boston Scientific is offering back around the original price but I think JNJ was right and that BSX is overpaying so I am going to make make BSX my Trade of The Day as a put. Anything above the 50 dma of $25 will be a gift on this stock, there will be big volume, so that’s not an if – which means if it breaks $24.75 then the Jan $25 put will be a nice gamble as long as it is not for more than the 1.60 that the $27.50 was going for on Friday. BSX is a $22Bn company trying to swallow GDT at $25Bn and it is very, very likely that over the next few days, someone will have a problem with that! On the other side of this trade, any chance to buy GDT for less than $70 is also a gift as analysts will jump on the bandwagon to claim $72 is a fair price for the company. DELL has made a nice, slow rising consolodation and looks to be primed for a nice move. I think they are a very safe bet to stay at or above the 50 dma of $31. HPQ has doubled for the year and Dell has dropped 50%, anyone who buys computers knows that…
Please review a collection of WWW browsing results.Date Found: Tuesday, 13 January 2015, 01:43:37 PM
Click for popup. Clear your browser cache if image is not showing. Comment: Ouch! See the last point of demand between $60 and $70 In Dec at resistance, now strong selling, Large pattern forecast sees a price under $40
Date Found: Tuesday, 13 January 2015, 06:54:16 PM
Click for popup. Clear your browser cache if image is not showing. Comment: Coffe ETF bounces off support, minor spring, if get some strength to $40, a trade may be on!
Date Found: Friday, 16 January 2015, 01:03:56 PM
Click for popup. Clear your browser cache if image is not showing. Comment: Apple forming a continuation stepping sto...
The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday April 27, 2015:
Swedish Orphan Biovitrum AB Confirms Receipt of Preliminary and Conditional Non-binding Proposal for Acquisition of All Shares Issued by Company
The Proposal: Swedish Orphan Biovitrum AB (OTC: SWTUY) confirmed Monday, that it has received a preliminary and conditional non-binding proposal in relation to a possible offer for all shares issued by the company. The company issued statemetn in repsonse to media reports.
This is an economic fight, but this is also a political fight. The biggest financial institutions aren’t just big – they wield enormous political power. Last December, Citibank lobbyists wrote an amendment to Dodd-Frank and persuaded their friends in Washington to attach it to a bill that had to pass or the government would have been shut down. And when there was pushback over the amendment, the CEO of JPMorgan, Jamie Dimon, personally got on the phone...
Last week, stocks cycled bullish yet again. In fact, the S&P 500, NYSE Composite, and NASDAQ each closed at record highs as investors positioned for the heart of earnings season in the wake of strong reports from some of the Tech giants. Notably, Utilities stocks got some renewed traction as yield-starved investors returned to the sector. Although our trend-following sector rotation model remains bullish, strong overhead technical resistance and neutral rankings in our SectorCast quant model indicate that caution is in order, and this might not be the moment for a major upside breakout, particularly given the expected softne...
Apple closed last week at an all-time weekly closing high at (1) in the chart above. Apple recently broke above its 4-year rising channel, came back to test old resistance and pushed higher, setting this new record high.
In November of last year, when Apple was trading below $110 per share, the Power of the Pattern shared that Apple’s upside target stood at $150.(See post here)
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Here's an interesting argument by Felix Salmon, although I think he is taking two correct observations and mistakenly attributing a cause-and-effect relationship to them: Bitcoin is going nowhere because women are not involved.
More likely, in my opinion, women are not involved in bitcoin because bitcoin is going nowhere (and they know it). Or maybe, simply, bitcoin is going nowhere and women are not involved.
Nathaniel Popper’s new book, Digital Gold, is as close as you can get to being the definitive account of the history of Bitcoin. As its subtitle proclaims, the book tells the story of the “misfits” (the first generation of hacker-l...
Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene
The replay is now available on BNN's website. For the three part series, click on the links below.
Part 1 is here (discussing the macro outlook for the markets)
Part 2 is here. (discussing our main trading strategies)
Part 3 is here. (reviewing our pick of th...
In my last post (Part 1 of this article), I looked at alternative ETFs that could be used as hedges against the corrections that we have seen during that long 2 year bull run. Looking at the results, it seems that for short (less than a month) corrections, a VIX ETF like VXX could actually be a viable candidate to hedge or speculate on the way down. Another alternative ETF was TMF, a long Treasuries ETF which banks on the fact that when markets go down, money tends to pack into treasuries viewed as safe instruments. In some cases, TMF even outperformed the usual hedging instruments like leveraged ETFs. There could of course be other factors at play since some of 2014 corrections were related to geopolitical events which are certain...
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PSW Members - well, what a year for biotechs! The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down! The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months. What could go wrong?
Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.
Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies. A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at email@example.com with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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