TRADERS VS MARKETS: 2009

Wednesday, July 15, 2009

THANK ME LATER FOR CALLING JUNE CORRECTION

I have been on hiatus to allow the markets cool. Thank me later for calling the mid June on the correction & support levels on the nose for the S&P 500 along Crude prices. So its time to put money to work again. Strong earnings posted by Goldman Sachs (GS) & Intel (INTC) are a breath of fresh air as we move into the Q3.

Natural Gas @ $3.50 per cubic inch is a steal heading into hurricane & winter season. U.S. Natural Gas Fund (UNG) is ready for a bounce. ICE below $90 also winner. Commodities in play-priced to move higher, Rio Tinto (RTP) & BHP do well heading into the season. I wouldnt count out the Agriculture sector either, fertilizer prices are under the weather but will remain steady as Global economy now showing signs of growth. Potash (POT) & Agrium (AGU) will lead the way.

Oil stocks will outperform Crude as barrels stay in tight trading range. PTR, SNP, SLB, XOM, OIH are among the leaders. We'll talk soon. Have a good day.

TRADERVSMARKET COPYRIGHT @ 2009

Wednesday, June 17, 2009

SMART MONEY IS MOVING INTO EDUCATION STOCKS

Sallie Mae (SLM) has secured a major contract that services goverment student loan funding for the next five years. ITT Education (ESI), Apollo Group (APOL), DeVry (DV), American Public Education (API) are all beneficiaries of guaranteed student loan funding that is no longer in jeopardy.

COPYRIGHT TRADERVSMARKET @ 2009

LINK COPYRIGHT BUSINESS WIRE @ 2009

Tuesday, June 16, 2009

HEALTHY CORRECTION ON THE MENU

When the S&P gets back to 875 & crude test $57.50 it will be time to cover your shorts.

Monday, June 15, 2009

NOTEWORTHY EARNINGS FOR THIS WEEK

TUES. JUNE 16th: Best Buy (BBY) Q1 eps est. $.34 vs $.43 y/y

WED. JUNE 17th: Fedex (FDX) Q4 eps est. $.53 vs $1.45 y/y

THURS. JUNE 18th: Rim (RIMM) Q1 eps est. $.93 vs $.84 y/y

Friday, June 12, 2009

BANK OF AMERICA READY TO BREAKOUT - UPGRADE TO BUY

Bank of America (BAC) has been idle for a month now. The stock appears to have found its footing closing up a dollar to $13 yesterday on CEO Ken Lewis' testimony to Congress. The Street has embraced BAC as one of the big bank survivors who has solid growth ahead. BAC 120 day price target $20 per share.

Thursday, June 11, 2009

CLIFFS NATURAL RESOURCES (CLF) - UPGRADE TO STRONG BUY

The Cliffs (CLF) momentum was broken after they announced secondary offering to raise capital last month. Since the offering the stock has picked up nicely were it left off. As Americas #1 iron ore producer it has grossly underperformed its rivals like Rio Tinto (RTP) & pellet customers like US Steel (X).

Irrespective of recent iron ore price cuts by oversees competitors, its not demand driven & Cliffs will be able to assuage there balance sheet through the spot market. China, the worlds largest steel producer has been holding out for further cuts to 2007 levels. Continued consolidation in the iron ore space bodes well for Cliffs as takeover target by China. CLF 90 day Price target, $57 per share.

Wednesday, June 10, 2009

FED BEIGE BOOK SAYS RECESSION MAY BE MODERATING

Labor weakness persist. See link above.

AGRICULTURAL LEADERSHIP!

The market is looking for leadership. The Ag sector seems to fit the bill for steady growth. Fertilizer & demand worldwide is not letting up. Stochastics are indicating another leg up for names like Potash (POT), Mosaic (MOS) Intrepid (IPI) & Agrium (AGU).

Tuesday, June 9, 2009

INTRADAY REVERSALS...SIGN OF A HEALTHY BULL!

It doesn't get much better than a intraday swing after an early sell off. Now is the time to take up positions in under performing sectors as this market moves across Dow 9,000. Sectors like: Coal (ACI, PCX), Solar (SPWRA, SOLF, STP) Metals (CLF, FCX) & Industrials (FLR, JEC, AKS, X)

TREASURY SECRETARY TIM GEITHNER SPEAKS TODAY AT 10:30 AM

Expect further profit taking today. Buy the dips; a healthy 5% pullback on the Dow to around the 8382 mark from yesterdays high of 8824 would present a decent stop-limit to buy back any oversold sectors.

Monday, June 8, 2009

CISCO & TRAVELERS OFFICIALLY REPLACE GM & CITI ON THE DOW TODAY >link

see link...

'Billy Elliot' Wins Tony for Best Musical >link

Sunday, June 7, 2009

A LOOK AHEAD AT THIS WEEKS ECONOMIC CALENDAR >link

Noteworthy Data:

Monday 12:30pm - FOMC Member Tarullo Briefing

Tuesday 10:30 am - Treasury Sec. Geithner Speaks

Wednesday 10:30am - Oil Inventories (Build in inventories expected, Crude Closed at $68.34)

Wednesday 2:00pm - FOMC Beige Book Report

Thursday 8:30am - Retail Sales & Unemployment Claims (Both reports expected to show improvement)

Friday 9:55am - Consumer Sentiment (Revisions show improvement but consumers remain cautious with spending)

Best of luck on your decisions this week. I say buy the dips through Dow 10,000.

Saturday, June 6, 2009

THIS MARKET HAS LEGS >Dow Chart

Don't fight the tape. This chart is telling the truth, were moving higher.

Friday, June 5, 2009

NYSE TRYING TO GET ITS MOJO BACK >see chart

NYSE Euronext (NYX) trading above its 200 day moving average. 52wk range $14.52-$61.55, last 30.25+.25

IRON ORE, ONE HOT COMMODITY: RTP - BHP DONE DEAL!

Keep your eyes on the other major iron ore producer; Cliffs Natural Resources (CLF) the next rising star in the group & potential takeover target as China looks to sweeten it's position in the mineral sector now that Rio Tinto (RTP) deal has gone south.

SOTHEBY'S SATISFACTION >link

Thursday, June 4, 2009

UNITED STATES OIL (USO) HEADED NORTH! >see chart

USO 52wk $22.74 - $119.17 Last $38 +1.75

Wednesday, June 3, 2009

BULLS STILL ON THE RUN

Intraday selloffs are being supported by the bulls heading into the closing bell. Another positive sign that this market has legs as we inch towards Dow 10,000. The undervalued coal sector will be a beneficiary for moving markets higher. Coal watch: Massey (MEE), Arch (ACI ) Cliffs (CLF).

Hurricane season began last week as well. Transportation sector makes big waves heading into the season. Rails watch: CSX, Norfolk Southern (NSC), Union Pacific (UNP). Shipping watch: Excel Maritime (EXM), Dry Bulk (DRYS), Frontline (FRO). Don't miss the boat.

Tuesday, June 2, 2009

GLOBAL ECONOMIC CALENDAR >link

Excellent reference for economic current events.

Monday, June 1, 2009

NEW ERA OF VOLATILITY

The 2-year Dow chart indicates a W shape bull market forming from peak to trough over the next 30 - months. Not to be confused with the lagging economic indicators that would suggest an L shape trading environment. The influx of electronic trading matched with heavy global institutional capital inflows are conducive for mass market liquidity trading, versus previous eras of investing.

Hence, the landscape is shifting from an investors market to a traders market that will consist of far greater swings in the indices. Consider the Dow Jones all time high of 14,164 October 9, 2007 to its low 6,547 March 9, 2009. Today the Dow closed at 8,721+221 up 33% from March alone. This should tell you something going forward, don't be afraid of 30+% market corrections. 30 is the new 20, enjoy!

TRADERS VS MARKETS