This is just the sort of stock action I like to see, lots of early panic selling on not very bad data (ISM went from 60 to 58.5) creating a lot of buy opportunities for steady players.
Good companies throwing sales are:
EK – .25
FRK – 1.07
GG – .3
HET – 1.25
INTC – .53
MOT – .15
MSFT – .30
TXN – .64
WAG – .68
GG @ -.30 is the silliest one of all. Gold is back to the year’s high and the stock is off because they are acquiring another reserve for stock. I won’t get into it now but being able to buy this company under yesterday’s close is a real gift. I think this is my Intraday Trade of the Day!
With a broad index sell-off like this I wouldn’t be backing up the truck just yet but it’s almost 11:30 which is Mr. Greenspan’s bedtime in Europe. Once his head hits the pillow without anymore gloomy pronouncements the market should move up. If we clear today its a travel week for our hero so we may be in good shape (when the cat’s away the market’s in play).
I would say it is safe to get back in the water if the Nas holds 2250 and the Dow holds 10,800. GM is continuing to drag the Dow while INTC, TXN and MSFT are just destroying the Nas.
Thurdsday TOD GNW is looking good on a rainy day (up .17).
Going the other way, I just entered BSX with a $25 put for just .10, looking for a double and out. I just can’t believe the people who bought it up (“Yeah, we just over paid for a company with $25Bn in cash and stock in order to double our sales but add only 50% to profit“).
I’m calling a turn here at 11:30 but no major commitments.
SUNW is on the move, I believe this is a sign of the Apokalypse! This is one of the greatest companies in computing if you rate them by product performace. If you rate them by making money they are pathetic but one day they will figure it out. I see them like Apple at it’s lows a couple of years ago. If they come up with a category killer (kind of like their new health system) this will be a 10 bagger. They will likely retest $4.50 without much trouble but they will need a few upgrades to get back to $5.
SYMC is up today, this confirms my call on Friday that Microsoft can’t damage it any further. As I said, I’m not letting this one get away so I’m going to pick up April $17.50s for $2.10 (a $1.50 premium).
It doesn’t make sense to buy JDSU now since the reverse split will save you 90% of the commissions unless you have a flat fee. The stock is also overbought now and the merger between now and next December so I would look for an entry closer to $2.35.
Oh no, they just announced a Bush speech on the economy at 1:15. All bets are off, I’ve seen the market gap down while he says everything is great so I will be watching nervously.
