Archive for 2005

Friday Outlook & TOTD – LLY

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…
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Monday Monday

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…
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Zero Hedge

World Trade War I: US Asks South Korea To Join Anti-Huawei Campaign

Courtesy of ZeroHedge. View original post here.

The bilateral trade war between the US and China is gradually becoming a global trade war of global geopolitical and commercial dominance between the US and Chinese spheres of influence.

Shortly after the two largest mobile phone companies in the UK decided against launching Huawei-built 5G phones this morning, and roughly around the time a bevy of Japanese tech and telecom companies including ARM Holdings, Panasonic and SoftBank all imposed a boycott on supplying Huawei with mission critical components joining Australia, and New Zealand as major US allies to end commercial relat...



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Phil's Favorites

Overpriced tech IPOs sell grand visions but aren't worth their valuations

 

Overpriced tech IPOs sell grand visions but aren't worth their valuations

rblfmr / Shutterstock.com

Courtesy of John Colley, Warwick Business School, University of Warwick

The year of the tech IPO is 2019. Uber went public on May 10 with a US$82.4 billion valuation. Fellow ride-sharing app Lyft floated in March with a U$24 billion valuation and Pinterest had a US$10 billion IPO in April...



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Kimble Charting Solutions

Emerging Markets About To Submerge If 3-Year Support Breaks?

Courtesy of Chris Kimble.

Are Emerging Markets about to “Submerge” and head a good deal lower? What they do at (3) will go a long way in answering this question!

Emerging Markets ETF (EEM) has been lagging the broad market for the past 15-months. They hit their 50% retracement level of the last year’s highs and lows and falling resistance at (2) recently. The weakness of last has EEM trading below its 200-MA line.

EEM has spent the majority of the past 3-years inside of rising channel (1), which reflects that this trend remains up. The weakness of late has it testing the bo...



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Insider Scoop

Amgen To Buy Danish Collaborator Nuevolution For $167M

Courtesy of Benzinga.

Amgen, Inc. (NASDAQ: AMGN) took a logical step forward in buying a preclinical biotech it has been collaborating with since 2016. 

What Happened

Amgen announced Wednesday an agreement to buy Copenhagen-based Nuevolution for $167 million.

Th...



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Chart School

Weekly Market Recap May 18, 2019

Courtesy of Blain.

China – U.S. trade talk continued to dominate the week.   A heavy selloff Monday was followed by 3 up days, with Friday moderately down.

On Monday, Chinese officials announced retaliatory tariffs against the U.S., hitting $60 billion in annual exports to China with new or expanded duties that could reach 25%.

Then on Wednesday:

The Trump administration plans to delay a decision on instituting new tariffs on car and auto part imports for up to six months, according to media reports.

...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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