LOW - Lowe’s Companies, Inc. – Shares in Lowe’s were hammered Monday after the home improvement retailer lowered its full-year earnings forecast and reported a smaller-than-expected increase in same-store sales. The stock is currently down 9.7% at $25.72 as of 12:30 p.m. ET following the company’s first-quarter earnings report this morning. Options activity in the front month is mixed, with some traders positioning for the stock to rebound, while others brace for further downside in the near term. Strategists constructing positions that benefit from a recovery in the shares homed in on the June $27 strike call, trading upwards of 5,800 contracts versus open interest of 18 positions. It looks like most of the calls were purchased for an average premium of $0.45 apiece, thus positioning longs to profit should LOW’s shares rally 6.7% to top $27.45 by June expiration. Meanwhile, put buying at the June $25 strike points to near-term bearish sentiment on the stock. Traders exchanged more than 2,300 of the $25 strike put options, purchasing most of the volume at an average premium of $0.65 each. The strategy may be profitable at expiration next month should Lowe’s shares decline another 5.3% to breach the average breakeven price of $24.35. Options volume of 30,715 on the second-largest U.S. home improvement retailer this afternoon today runs at twice the 90-day average options volume for the name.
CBE - Cooper Industries PLC – Shares in the Maynooth, Ireland-based maker of electrical products and tools rallied nearly 30.0% to a record-high of $71.73 today after diversified power management company, Eaton Corp., agreed to buy Cooper Industries in a cash and stock deal valued at $11.8 billion. Options on Cooper are more active than usual with just fewer than 800 contracts in play as of 1:00 p.m. ET versus the 90-day average options volume on the stock of 91 contracts. Open interest in July expiry call options on CBE suggests one…
Russell 8-0-0, Russell 8-0-0! Wherefore art thou Russell8-0-0? Deny thy dollar and refuse to fall, or, if thou spike not, be but consolidating at resistance and I’ll happily Capitulate….
If it’s good enough for fair Juliet, it’s going to have to be good enough for us as the Russell finally makes it over our 800 target – the last barrier that was keeping us on the bearish side. Above these lines – it’s time to stop worrying and love the rally as we romanticize the deadly combination of QE2 the Obama tax cuts as: "A pair of star-crossed lovers take their life, whose misadventured piteous overthrows doth with their death bury their parents’ strife."
Of course Willie Shakespeare has nothing on Jimmy Cramer, who’s pearls of wisdom are also sure to be repeated centuries from now. Last night the Bard of Wall Street sang a veritable sonnet in praise of the stock market and foretold a tale of woe for anyone dumb enough to take profits into this rally:
We got the correction this morning, Dow fell 35 points… Today’s action was proof positive that you need to stop worrying and learn to love corrections… What scares me, and what should scare you, is that if you sell your stocks here, you won’t be able to get back in. You should be worried about stocks getting away from you, because I think we can be on the verge of something big – something very positive. FORGET the fact that stocks have run up a lot in the last 6 months. For more than 10 years, this market has done nothing, THAT is the most important frame of reference…
What’s changed? We are finally starting to see big breakouts from a slew of breakouts from several large cap companies including: CAT, UTX, FCX, SWK, CBE, ETN, CSX, UNP and so many other big industrials. Ladies and gentlemen, we have waited over a decade for this move and what do people want to do now that it has arrived? They want to sell! That’s right, they want to sell. That’s right. They want to dump the stocks (sell button sound effect) because they are up way too much short-term or because they think the moves are illusory or driven by short squeezes that will
By Clayton Browne. Originally published at ValueWalk.
Scott Bessent, who has been George Soros Chief Investment Officer for the last four years and has a long working relationship with the legendary progressive billionaire, plans to depart from the Soros family firm at year end to launch his own hedge-fund firm.
Based on a company memo distributed on Tuesday to employees of Soros Fund Management, Bessent is leaving to establish Key Square Group with a $2 billion investment from Soros.
More on George Soros and Scott Bessent
In the memo, Robert Soros, the deputy chairman of the $30 billion Soros family office, provided an explanation for why Bessent was moving on.
Readers of this site don’t need me to tell you, but the following statistics from the Wall Street Journal prove that despite record stock prices and non-stop propaganda, fewer and fewer people are believing the hype.
We learn that:
On a benchmark measure of Americans’ unease, 65% of those surveyed said the country is on the wrong track. That is the highest level of unease since November 2014, and nears the levels seen at other historical moment...
The left chart looks at the Nasdaq Composite index over the past 20-years.
Currently the index is back at the same price as it was back at the Dot Com highs. With the trend being up (above support and moving averages) the NAS, is attempting a “continuation of trend breakout” at this time. Should the index achieve a breakout above the 2000 levels, it would be viewed as a bullish continuation event.
The right chart looks at Apple over the past 5-years. For the past 6-months, Apple has struggled to get above the $133 level. From a very short-term perspective a short-term support line could be giving way, of a bearish r...
“It’s an election about who will protect our economy in a period of ongoing global instability,” Stephen Harper, Prime Minister of Canada, announced on Sunday as he officially kicked off the campaign for the federal elections on October 19. He’d just asked Governor Gen...
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In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.
Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...
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Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).
Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself.
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...
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 firstname.lastname@example.org 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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