Feb 2, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions


Stock Picks For 02 February

Posted: 02 Feb 2010 05:11 AM PST

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(MOT) - I will take long positions at this point hoping that this stock has reached the bottom. The reason for that is due to the fact that the stock has traded a huge amount of shares on Monday, again, probably a sign of capitulation. Could this be the reversal ? I’m betting it is, but I’m not sure.

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(AOB) broke out of a tight range on Monday and I’m watching for a continuation move today. Although the moving averages of stock are showing … [visit site to read more]


Warning: This Isn’t Not Another Wall Street Conspiracy Theory, These Are The Facts

Posted: 02 Feb 2010 05:01 AM PST

Just last week, the House Committee on Oversight and Government Reform held a hearing on the U.S. Federal Reserve’s decision to directly pay billions of dollars to banks as part of its scheme to bail out insurance giant American International Group Inc. (AIG).

According to committee Chairman Dennis Kucinich, D-Ohio, the testimony that congressmen heard just didn’t “pass the smell test.”

What really stinks about the whole mess is not only the cover-up of what really happened and why, … [visit site to read more]


Forex Trading: AUDUSD Corrects Higher Off Failure To Extend The Downside, But No Cut Has The Currency Pressured

Posted: 02 Feb 2010 04:49 AM PST

The RBA surprised by not raising rates last night. This sent the AUDUSD sharply lower, erasing  the gains from yesterday's rally higher. The price is now correcting higher as the failure to extend the downside has led to some profit taking.  Yesterday the low came in at 0.8787. The lows today came in at 0.8781 and 0.8780.  Each time down, the pair found anxious profit taking buyers who pushed the price back up. 
Now the price is back up testing the 38.2% retracement of … [visit site to read more]


Forex Trading: EURUSD Tests The 100 Hour MA And Finding Some Profit Taking Sellers

Posted: 02 Feb 2010 04:28 AM PST

The EURUSD is testing the 100 hour MA as NY enters for the day. The level comes in at the 1.3954 level. 
The pair has risen off the low that tested the old channel trendline (see chart below) at the 1.3883 level. The grind highertoday  is now finding the profit taking sellers now at the key moving average level. A break above would likely lead to renewed buying interest with 1.3983 the next target for the pair.

On the downside, look for price to find support at the 1.3930-35 … [visit site to read more]


Rough Waters Ahead For Financial Stocks

Posted: 02 Feb 2010 04:01 AM PST

Here in the United States, investors have been startled by the realization that Washington no longer appears to be acting as a benefactor to Wall Street, the financial markets, and the economy. Ever since the collapse of Lehman Bros. Holdings Inc. (OTC: LEHMQ) back in 2008, a Faustian deal was forged between Wall Street executives and the politicos in Washington: Ideologies would be thrown by the wayside to prevent a meltdown of the American financial system and the precipitous collapse of … [visit site to read more]


Forex Trading: Reserve Bank Of Australia Shocks Markets & Aussie Dollar Collapses

Posted: 02 Feb 2010 03:23 AM PST

The RBA stunned the market by holding their cash rate steady at 3.75% and not hiking another 25bp, as was widely expected (roughly 80%). The AUD immediately collapsed, as traders anticipated eroding yield spread. The AUDUSD shed nearly one and a half big figures, trading from 0.8927 to 0.8780. However, the RBA’s accompanying statement clearly indicates that rates might go higher in the future. And that is what the traders are betting on, as near-term bank bill futures rallied by around … [visit site to read more]


Obama’s Budget Proposal Adds $1 Trillion In Taxes, Balloons Federal Deficit

Posted: 02 Feb 2010 03:01 AM PST

President Barack Obama yesterday (Monday) unveiled a $3.8 trillion budget proposal that includes big tax increases on individuals and businesses, and expands the federal deficit by more than $5.5 trillion by the end of the decade, including a record $1.6 trillion next year.

The budget blueprint for the fiscal year that begins Oct. 1 reflects the administration’s struggle to find a balance between containing the spiraling federal deficit with the need to boost the economy and create jobs - … [visit site to read more]


Forex Trading: EUR PPI M/m

Posted: 02 Feb 2010 02:03 AM PST

Eurozone PPI came in slightly better than its 0.0% forecast at 0.1%, but it had little effect on the market as the EUR trades mid-range for the session at 1.3937. The market will now wait for pending home sales out of the U.S. and statements which will be made by Treasury Sec … [visit site to read more]


Semiconductors ETFs Expected To Shine

Posted: 02 Feb 2010 01:01 AM PST

As consumer confidence strengthens, global economies grow and capital spending in corporate America is expected to increase, the semiconductor industry and its exchange traded funds (ETFs) are likely to reap the benefits.

According to the latest data from the Conference Board, its index of consumer confidence increased for the third month in a row to its highest level in two years.  This indicates that consumers are starting to see the light at the end of the tunnel and are hopeful that the … [visit site to read more]


Video: Obama Unveils Federal Budget Plan

Posted: 02 Feb 2010 01:00 AM PST

President Barack Obama’s $3.83-trillion budget proposal aims to create jobs and cut the deficit. … [visit site to read more]


The World’s Biggest Downtrend

Posted: 02 Feb 2010 12:31 AM PST

I’m shorting China.

China is the world’s largest, most liquid emerging market… and the main engine of global trade. This makes its stock market a kind of benchmark for riskier investments.

I track Chinese stocks with the iShares FTSE/China 25 Index ETF (FXI). This fund just reached its lowest point in over six months. But the chart gets even worse when you look under the hood…

Take a look at the middle window in the chart above. These bars represent trading volume. The tall red … [visit site to read more]


Forex Trading Review For 02/02/2010

Posted: 02 Feb 2010 12:27 AM PST

USD Dollar (USD)

The Dollar was mixed versus the majors after better than expected Manufacturing PMI and gains in equity markets led investors to bet on global economic recovery. ISM Manufacturing PMI came out stronger with 58.4 versus 55.5 expected. NASDAQ and Dow Jones gained by 1.11% and 1.17% respectively as a lift in energy stocks led by strong earnings from Exxon Mobil contributed to a broad incline. Crude Oil gained by 2.79% closing at 74.92$ a barrel on weaker Dollar and assaults on … [visit site to read more]


Stock And Forex Trading Picks For Tuesday 2 February

Posted: 01 Feb 2010 11:06 PM PST

After Monday’s trend day higher, investors may continue to look for bargains through the middle of this week. Certainly the market’s nature has changed during the past two weeks, with many trading days characterized by sustained distribution and an absence of dip buyers.

Monday we are getting some news that Senator Dodd wants to water down President Obama’s bank proposals. The President’s newly aggressive stance on banks (which I support) was a catalyst for the current bearish cycle, … [visit site to read more]


ETF Update: A Contrarian Call On Chip Stocks

Posted: 01 Feb 2010 11:01 PM PST

Over the last two weeks of trading, those focused on the daily lesson have come to expect that stocks will move lower.  We all know about behavioral finance.  We know how easily humans see a “pattern” from a few data points.

Here is the interesting thing about patterns:

There is no “flu shot” for behavioral finance.

If you give traders a few days of trading experience - higher open, selling, lower close - they will all learn the drill.  The long-awaited “correction” is upon … [visit site to read more]


Mutual Funds: Top Global Equity Funds

Posted: 01 Feb 2010 10:50 PM PST

Today we are featuring top-performing "Global” equity mutual funds, which help investors diversify by investing in both U.S. and foreign equity securities.
5 Excellent Global Choices
ING Global Value Choice A (NAWGX) seeks maximum capital growth. It was incepted in April 1993 At least 65% of the assets of this global fund are invested in a minimum of three different countries, one of which could be the United States. It invests at least 80% of its assets in common and preferred equities, … [visit site to read more]


Stock Buy: Tempur-Pedic

Posted: 01 Feb 2010 09:00 PM PST

Tempur-Pedic International Inc. (TPX) posted its seventh consecutive earnings surprise on top-line growth and a better profit margin.
Company Description
Tempur-Pedic makes mattresses and pillows from the company’s proprietary material.
Sales Rise 29%
Tempur-Pedic reported quarterly results on Jan 26 that included sales of $245 million, up 29% year-over-year. The company also improved its gross profit margin by 550 bps, to 48.5%.
Earnings for Tempur-Pedic came in at 38 cents per share, more … [visit site to read more]


Bear Of The Day: Progress Energy (PGN)

Posted: 01 Feb 2010 09:00 PM PST

Progress Energy (PGN) is one of the nation’s larger pure-play electricity utilities. Given the disappointing outcome of the Florida rate case and lowered 2010 guidance, we expect the stock to remain under pressure in the near term.
Furthermore, weak economic conditions in Florida, which have slowed customer growth and reduced demand for electricity, remain worrisome issues. Thus, we expect 2010 to be a challenging year for Progress Energy.
However, we like the company for its increased … [visit site to read more]


Stock Buy: SKECHERS USA, Inc.

Posted: 01 Feb 2010 09:00 PM PST

SKECHERS USA, Inc. (SKX) already announced it would post record revenue for the fourth quarter which has pushed the Zacks Consensus Estimates higher. The stock has attractive value characteristics, trading at 14.96x forward earnings.
Company Description
SKECHERS sells footwear for men, women and children via department stores, specialty stores, its own SKECHERS retail stores and its e-commerce web site. It also sells internationally through distributors across Europe, Canada, Brazil and … [visit site to read more]


Bull Of The Day: 3M Company (MMM)

Posted: 01 Feb 2010 09:00 PM PST

We are maintaining our Outperform rating on 3M Company (MMM) with a target price of $89. In the most recent quarter, selling prices were again positive, which boosted gross margin by 50 basis points.
Raw materials were down slightly versus Q4 of the prior year, adding approximately 30 basis points to its margin. Fourth-quarter gross margins also benefited from earlier cost reduction actions. The company invested $1.3 billion in R&D, up slightly as a percent of sales.
3M continued to … [visit site to read more]


Stock Buy: Green Mountain Coffee Roasters Inc.

Posted: 01 Feb 2010 09:00 PM PST

Green Mountain Coffee Roasters Inc. (GMCR) just hit a new 52-week and all-time high at $88.65 after reporting awesome Q1 results on Jan 28 that were easily ahead of estimates.
Company Description
Green Mountain Coffee Roasters Inc. operates in the specialty coffee industry in the United States and internationally as a wholesaler and retailer. The company was founded in 1981 and has a market cap of $3.67 billion.
First-Quarter Results
Sales were up 77% from last year to $349.4 million. … [visit site to read more]


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