Indices are UP after being lower.
S&P 500 @ 1959.28, high 1965.29, low 1937.19
Internals are positive
Oil UP $1.65
Gold UP $8.00
Canadian $ UP 63 tick @ 68.08
VIX Down 5.03% @ 24.91
Portfolio CNQ FB FIT LULU NXPI RAD TSL VDSI
LULU earning report for Q2 was a beat but its guidance for Q3 although higher in Sales but lower EPS due to margin pressure. Inventory is also an issue, stock is being punished down 16.10%. I see those issues as temporary and should go away by end of current Q.
Most stocks are UP
@ 2.53 following are red :
FIT LULU NXPI NFLX FEYE YHOO BIDU BABA
LVS LEN SINA DNKN YUM SPWR CRUS
CIEN QIHU AMCC M X STLD CCJ
WYNN MLNX.....
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
Sold NEFF @ 5.73 avg.
The up move after URI's guidance didn't play out as expected and cash needs are high at the company. It seems the wrong time to play such highly levered companies.
Stocktrader
Hi Stocktrader,
Good luck with new ideas.
Saleem
Hi, I might buy CNQ as well. The recent report was actually somewhat bullish, since it showed imports and US production both down. Refineries will decrease demand soon, but that'll be over in 2 months. So, oil could go lower.
Also, I don't like SU, because refineries might not do as well in the coming months. The WTI-Brent spread should be worse due to reduced US production, and the crack spread should be worse due to rising prices. This is my amateur understanding.
CNQ is more of a pure play on an oil recovery.
The Canadian government sounds insane though. I'm environmental and wary of corporate influence over a society, but the government doesn't seem reasonable.
I might buy LULU
Ah, just to add one final comment on oil: Dan Dicker mentioned in his analysis that China isn't going into recession. In other words: He assumes there is no demand issue.
However, we do see reduced demand in the world, outside the US.
So, perhaps the oil play relies on demand holding up. Regardless, US production is heading down.
Hi Firebird,
Oil like anything else has gone through a huge downtrend and may have been overdone like always, oil stocks are ripe for a trend reversal, while intellectuals fight over last $ targets.....for oil.....
Saleem
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