Indices fought negativity from housing stats & earnings from MCD.
S&P 500 @ 1695.53, high 1697.61
RSI @ 69.12
CMF @ 0.257
Internals were :
UP volume led by 1.85 to 1 in NYSE & 1.74 to 1 in Nasdaq
Advancing stocks led by 1.34 to 1 in NYSE & 1.53 to 1 in Nasdaq
Net new 52 wk highs were leading by 253 in NYSE & 271 in Nasdaq
VIX Down 1.99% @ 12.29
Oil @ $106.91
Gold @ $1336.00
Stocks which closed green included KORS MU AUY
CLF CLDX SODA TCK X CSIQ SPWR FSLR
GMCR TSLA GOOG HMC PCLN MA V
GG EGO SLW AEM JASO FNSR C
SNDK QCOM CCJ MGA Z GS
IBN FCX......
AH ER :
NFLX Down 3.99%, TXN UP 1.95%
AH Futures UP
AH Asian Markets UP
AH Oil UP
AH Gold Down
About market, Indices made another closing high.Housing stocks are showing weakness due to rising interest rate & inventory. @ this stage in market & seasonality, it is important to book profit & be in strong sectors.
BLOG does NOT give buy or sell.
Saleem
13 comments:
Hey Saleem,
I keep finding myself adding commodity stocks with fundamentals improving but severely depressed in price/sentiment for so long. I don't trust a lot of the techs, and the financials have run a lot. I think there's still opportunity in some consumer discretionary though--KORS is building a long, rising base and SODA jumped nicely today. The fear there is higher gasoline prices hence why they haven't run as much/at all.
In my small trading portfolio I loaded up on some FCX calls at close just after buying for the larger retirement one. The weekly 30s were only $0.19-$0.21, I thought that was quite cheap considering the earnings tomorrow morning. It could be fireworks for me early!
I was thinking about KOG over the weekend and realized the downside risk was almost none after earnings (Aug 7th PM) especially considering oil pricing has improved even more in July. It's funny because Cramer did a highlight segment tonight on winners from the WTI/Brent spread closing to ~0 and Bakken plays were some of the winners including KOG.
Stocktrader
Hey Saleem,
Nice results from BTU in terms of profitability and better-than-expected/feared from FCX. I wouldn't be surprised to see the whole complex trade higher.
Stocktrader
Hey Saleem,
Other interesting news:
CSCO buying FIRE for $76 which is driving up PANW in pre-market.
Also, despite wanting to make a decision on RDN today for earnings tomorrow, MTG reported this morning and stole my chance. I definitely regret selling RDN...
Stocktrader
Hey Saleem,
Finally...
***
08:31 EDT ALBCF, YHOO theflyonthewall.com:
Alibaba reportedly files for Hong Kong IPO, China Perspective says
Alibaba Group (ALBCF) has filed its application for listing at the Hong Kong stock exchange aimed at raising up to $20B and is expected to float in October with a valuation of $100B, reported The China Perspective, citing Hong Kong-based Oriental Daily. About $7B from the money raised will be used to buy back Yahoo's (YHOO) stake in Alibaba, the report added.
http://www.thechinaperspective.com/articles/china-corporate-news-alibaba-said-to-have-applied-for-hk-listing-tencent-said-to-invest-in-xiaomi-10280/
Alibaba Said to Have Applied for HK Listing
Alibaba Group Holding Ltd, China's dominant e-commerce service provider, has lodged its application for listing at the Hong Kong stock exchange aimed at raising up to $20 billion, Hong Kong-based Oriental Daily reported. The company is expected to float in October with a valuation of $100 billion. Approximately $7 billion from the money raised will be used to buy back Alibaba's share owned by Yahoo! Inc (Nasdaq: YHOO), the source said. Alibaba delisted its B2B site Alibaba.com a year ago in preparation for the initial public offering of the group as a whole. Its Taobao.com is China's top C2C site; its Tmall.com is China's top B2C site; its Alipay is China's top third party billing service provider. Japan's Softbank is Alibaba's largest shareholder, holding a 35% stake; Yahoo owns 23%, Alibaba's management owns 24.7%; some private equities and institutional investors own 10.3%; its founder Jack Ma owns 7%.
***
Stocktrader
Hi Stocktrader,
Thanks for all the writeup of many things...
I am glad that FCX earning worked out for you.
RDN & KOG are flying......i missed the run in both.....
Saleem
Hey Saleem,
KOG actually preannounced a lot of quarterly figures this morning as well as a senior note offering to pay back some debt.
So much has happened this morning--I've been busy! :)
Stocktrader
Hi Stocktrader,
YHOO will get $7 billion after IPO...that is a nice payout.
YES..i saw KOG reports....
Good luck with FCX.....
Saleem
Hey Saleem,
After I got back from my morning shuttle service (kids have day camp this week), I was able to listen to most of the FCX conference call (in Q&A now) and they provided slides for the whole thing. I see a lot of positives going forward into 2016 and beyond on both production increases and cutting costs and non-essential projects. There is not much to pick apart here unless commodity prices collapse further.
BTU was a beneficiary of a huge tax benefit which helped this quarter's EPS. Their cost cutting efforts still look good, however, and they're predicting upticks in coal usage. I'm not sure how to play it from here--I guess we'll see how it reacts to the 50 DMA @ 17.53.
Stocktrader
Hey Saleem,
In the Q&A, FCX also said they are considering an MLP-spinoff of assets to increase shareholder value. I found that interesting enough to add a commment here...
Stocktrader
Hi Stocktrader,
Thanks for your updates on cc for BTU & FCX....i do keep those recap in my mind for any future decision.
In the meantime, i have bought YHOO $28 call for 15 cents..expires on Friday.......
Saleem
Hey Saleem,
Interesting speculative play! I would have thought YHOO would have moved on that news this morning, but there was another downgrade this morning and momentum has been negative after Loeb's news. Maybe by the afternoon we'll start to see some ramp...
Stocktrader
Hey Saleem,
I almost immediately regret this move after I did it, but I bought RDN @ 13.818. With credit quality improving dramatically, the earnings power could be huge. I guess worst case I just sell in a couple days.
Stocktrader
Hi Stocktrader,
RDN is trading @ $13.80....not far from your buy.....
YHOO has digested analyst negative take on Loeb exit.....but he wanted out after making $18 per share on 60 million share..nice gain.....risk/reward analysis.....
Saleem
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