Just got back from the weekend so I will wrap up last week by saying good riddance!
There, now that that’s taken care of, let’s see where we are…
Asia traded down a bit as the US markets have confused them as well. China is making moves to slow growth by tightening the money supply. Europe had a good open but is selling off into our open as everyone is wondering what will happen in the US now that the expirations are over and there are just 10 trading days left in the quarter.
Intel got another upgrade as geniuns analysts come to realize that perhaps they shouldn’t have lost 40% of their market value this year. We will see how much it helps to guage the temperature of the market in general.
Let’s not forget that the S&P failed to get back to 1,260 last week so until we are firmly over that mark I won’t be buying a thing outside of a day trade. The Nasdaq is still a mile below anything that can be classified as a recovery and any downward motion there will get me shorting last weeks “recoveries.” We don’t care what the Dow does as money flowing in there could just be a “flight to quality” as investors look for somewhere safe to park their money.
It goes without saying that the Dow dropping below 11,100 would be disastrous.
There was too much of a commodity boost in last week’s rally and the same stocks could lead us the other way this week. It’s still all about the SOX and hopefully Intel can lead a recovery there but if 460 forms a barrier there, then the Nasdaq will suffer.
Oil is down right around $69 as yet another weekend goes by without the world ending – can we keep the streak going? Tune in next Monday to find out (or not as the case may be). Rhetoric alone is just not cutting it anymore as Iran has made inflamatory statements but no one seems to care anymore.
Gold is also off as the world makes it to another Monday but I think the dollar is running out of steam so look for gold to follow oil whichever way it goes on a roughly 10:1 ratio. Mining stocks are still way oversold but I want to see gold firmly over $585 before even considering it.
A real sidelines day if ever these was one for me! FDX earnings are Weds so I will be waiting for them to tell us what the economy is really doing.
If for some reason the S&P breaks right over 1,260 and stays there, these are my temptations:
PLA got an upgrade and looks safely at a bottom anyway. I like owning the stock for $9.20 and selling the $10s for .25 for a nice monthly income.
CC had nice earnings today which reaffirms BBY as a buy with the $55s at $1.
MOT $20s for .85 – see 100 earlier posts…
INTC Oct $20s for .60.
ADBE $30s for .85.
MS is still way behind the other brokers and the $55s have a $1.30 premium at $3.30.
I’m still liking the buyout rumor on ATYT with the $15s at $1.15.
PEP $60s look like a winner, already at $1.10 (up 70%) and I still like them.