Trader's Edge

Could Inventory Problems Kill Intel (INTC) and Texas Instruments' (TXN) Recent Rally?

karand — Thu, 19 Nov 2009 18:55:50 GMT

Intel (NasdaqNM: INTC) opened at $19.40. So far today, the stock has hit a low of $19.18 and a high of $19.40. INTC is now trading at $19.19, down $.93 (-4.62%). Over the last 52 weeks the stock has ranged from a low of $12.05 to a high of $21.27. INTC shares are falling with other semiconductor stocks this morning after analysts at BofA/Merrill downgraded a number of stocks in the sector, saying in a note to investors that inventory levels are close to eclipsing demand. The analysts added, "we think the longer this persists the greater the risk of a correction in the supply chain." INTC was reduced to Neutral from Buy. Technical indicators for the stock are bullish and S&P gives INTC a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on INTC the stock seems like it could be a candidate for a January out-of-the-money bear-call credit spread above the 21 range.

Campbell Soup (CPB) Raises Dividend

karand — Thu, 19 Nov 2009 18:58:52 GMT

Campbell Soup (NYSE: CPB) closed yesterday at $33.77. So far the stock has hit a 52-week low of $24.63 and 52-week high of $38.24. Campbell Soup stock has been showing support around 33.12 and resistance in the 34.12 range. Technical indicators for the stock are Bullish and S&P gives CPB a neutral 3 STAR (out of 5) hold rating. CPB appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a May '10 32.50 covered call (CPB EZ) for a net debit in the $31.52 area. That is also the break even stock price for this trade. This covered call has an 184 day duration, provides 6.66% downside protection and a 3.11% assigned return rate for a 6.17% annualized return rate (comparison purposes only). Campbell Soup has a current annual dividend yield of 2.99%.

gbrc

mickymoose99 — Fri, 20 Nov 2009 19:40:14 GMT

------
GBRC

Having a great day +5.68% tick is up

almost at twice the ten day

RSI LINE @ 53.18 and rising

HIST GRAM starting to build

went as high @ 0.99

alot of promise here

keep an eye on it

Profit, Same-Store Sales Rise For PetSmart (PETM)

karand — Thu, 19 Nov 2009 18:59:53 GMT

PetSmart (NasdaqNM: PETM) closed yesterday at $26.31. So far the stock has hit a 52-week low of $13.27 and 52-week high of $26.85. PetSmart stock has been showing support around 25.43 and resistance in the 26.81 range. Technical indicators for the stock are Bullish and S&P gives PETM a neutral 3 STAR (out of 5) hold rating. PETM appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at an Apr '10 25 covered call (QPT DE) for a net debit in the $23.46 area. That is also the break even stock price for this trade. This covered call has a 149 day duration, provides 10.83% downside protection and a 6.56% assigned return rate for a 16.08% annualized return rate (comparison purposes only). PetSmart has a current annual dividend yield of 1.54%.

Whirlpool (WHR) Trading In Tight Support/Resistance Range

karand — Fri, 20 Nov 2009 14:08:43 GMT

Whirlpool (NYSE: WHR) closed yesterday at $70.72. So far the stock has hit a 52-week low of $19.19 and 52-week high of $80.41. Whirlpool stock has been showing support around 68.91 and resistance in the 73.91 range. Technical indicators for the stock are Bullish and S&P gives WHR a neutral 3 STAR (out of 5) hold rating. WHR appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 70 covered call (WHR AN) for a net debit in the $65.42 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 7.49% downside protection and a 7.00% assigned return rate for a 44.83% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the WHR Jan '11 20 Call (VOR AD) and selling the Jan '10 70 call (WHR AN) for a $45.80 debit. The trade has a 57 day life and would provide 6.96% downside protection and a 9.17% assigned return rate for a 59.00% annualized return rate (for comparison purposes only). Whirlpool has a current annual dividend yield of 2.28%

Cimarex Energy (XEC) Gets Positive S&P Rating

karand — Fri, 20 Nov 2009 14:07:00 GMT

Cimarex Energy (NYSE: XEC) closed yesterday at $46.45. So far the stock has hit a 52-week low of $15.35 and 52-week high of $48.54. Cimarex Energy stock has been showing support around 45.26 and resistance in the 48.28 range. Technical indicators for the stock are Bullish and S&P gives XEC a positive 4 STAR (out of 5) buy rating. XEC appears on the Investors Observer Hedged Dividend Income list. For a hedged play on this stock, look at a Jan '10 45 covered call (XEC AI) for a net debit in the $42.75 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 7.97% downside protection and a 5.26% assigned return rate for a 33.70% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the XEC Jan '11 17.50 Call (ZWK AW) and selling the Jan '10 45 call (XEC AI) for a $25.80 debit. The trade has a 57 day life and would provide 6.78% downside protection and a 6.59% assigned return rate for a 42.00% annualized return rate (for comparison purposes only). Cimarex Energy has a current annual dividend yield of 0.50%.

US Steel (X) Sharply Lower On Heavy Volume

karand — Fri, 20 Nov 2009 14:06:17 GMT

US Steel (NYSE: X) closed yesterday at $41.28. So far the stock has hit a 52-week low of $16.66 and 52-week high of $51.65. US Steel stock has been showing support around 39.74 and resistance in the 43.00 range. Technical indicators for the stock are Neutral and S&P gives X a neutral 3 STAR (out of 5) hold rating. X appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jan '10 39 covered call (FBJ AE) for a net debit in the $36.68 area. That is also the break even stock price for this trade. This covered call has a 57 day duration, provides 11.14% downside protection and a 6.32% assigned return rate for a 40.50% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the X Jan '11 12.50 Call (OUS AE) and selling the Jan '10 39 call (FBJ AE) for a $24.60 debit. The trade has a 57 day life and would provide 10.13% downside protection and a 7.72% assigned return rate for a 49.00% annualized return rate (for comparison purposes only). US Steel has a current annual dividend yield of 0.47%

Textron (TXT) Relatively Flat With Bullish Technicals

karand — Fri, 20 Nov 2009 14:05:46 GMT

Textron (NYSE: TXT) closed yesterday at $20.18. So far the stock has hit a 52-week low of $3.57 and 52-week high of $21.00. Textron stock has been showing support around 19.03 and resistance in the 20.85 range. Technical indicators for the stock are Bullish and S&P gives TXT a positive 4 STAR (out of 5) buy rating. TXT appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Jun '10 18 covered call (TXY FO) for a net debit in the $16.08 area. That is also the break even stock price for this trade. This covered call has a 211 day duration, provides 20.32% downside protection and an 11.94% assigned return rate for a 20.66% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the TXT Jan '11 10 Call (XUD AB) and selling the Jun '10 18 call (TXY FO) for a $6.75 debit. The trade has a 211 day life and would provide 17.00% downside protection and an 18.52% assigned return rate for a 32.00% annualized return rate (for comparison purposes only). Textron has a current annual dividend yield of 0.39%.

General Electric's Immelt.

Seti03 — Thu, 19 Nov 2009 17:06:28 GMT

FAIRFIELD, Conn. (TheStreet) -- General Electric (GE Quote) CEO Jeff Immelt says U.S. public policy is "kind of a mess," when it comes to clean energy

Immelt made the comments Monday night during a webcast discussion hosted by Bank of America (BAC Quote)'s Merrill Lynch Wealth Management division. The discussion also featured a top economist and equity strategist at the bank, as well as the president of the unit, Sallie Krawcheck, who is seen as a longshot candidate to replace outgoing bank CEO Ken Lewis.

While all GE's talk of "Ecomagination" is a bit much, it appears GE is taking a stance on energy policy that does not fit the old big business stereotype, and that stance is earning it certain enemies on the right. Though Immelt is a Republican, at least one blogger is angrily linking him with Al Gore as part of a conspiracy to "undermine domestic oil drilling."

GE has been an outspoken proponent of reducing greenhouse gas emissions, and was a co-founder of United States Climate Action Partnership (USCAP), a business alliance that aims to "slow, stop and reverse the growth of U.S. emissions while expanding the U.S. economy." USCAP's membership has grown from 13 to 31 members since its founding in 2007, according to website POLITICO.com, which points to a growing divide among U.S. businesses on energy policy highlighted by Apple's (AAPL Quote)'s decision to leave the U.S. Chamber of Commerce last month because of differences about environmental policy.

POLITICO contrasts the growing membership of USCAP, which includes Ford Motor Co. (F Quote, ConocoPhillips (COP Quote), Alcoa (AA Quote), Rio Tinto (RTP Quote), Royal Dutch Shell (RDS-B Quote) and Duke Energy (DUK Quote), with the defections of Apple and other companiesfrom the Chamber of Commerce, which has also seen reduced levels.

With so many big businesses on board, then, what's the holdup to legislation? Politicians who represent rural America, argued The Economist last week.

Still, if Jeff Immelt and Al Gore are on the same team, you've got to like that team's chances.

-- Written by Dan Freed in New York

TXN Downgraded On Fears Of Oversupply

karand — Thu, 19 Nov 2009 18:56:55 GMT

Texas Instruments (NYSE: TXN) opened at $24.80. So far today, the stock has hit a low of $24.60 and a high of $24.81. TXN is now trading at $24.61, down $1.15 (-4.45%). Over the last 52 weeks the stock has ranged from a low of $13.38 to a high of $26.08. Shares of TXN are trading lower today after analysts at BofA/Merrill downgraded a number of semiconductor stocks, saying in a note to investors that inventory levels are close to eclipsing demand. The analysts added, "we think the longer this persists the greater the risk of a correction in the supply chain." TXN was reduced to Neutral from Buy. Technical indicators for the stock are bullish and S&P gives TXN a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on TXN the stock seems like it could be a candidate for a January out-of-the-money bear-call credit spread above the 27.50 range.

I.P.O.'s

tnt711 — Wed, 07 Oct 2009 00:29:16 GMT

Can someone tell me can you buy a upcoming I.P.O.s?

Data blizzard tonight from Beijing; Don’t believe the hype

klaabukosmos — Wed, 21 Oct 2009 16:28:54 GMT

Chinese GDP, retail sales and industrial production figures are set for release late tonight. There has already been talk that industrial production has leaked and will rise 14.1% y/y versus a 12.3% in August.

This commentator says don’t believe the hype: China is building production capacity at a time when the world doesn’t need it and it will ultimately pay a price for doing so…

http://www.forexlive.com/

Mastercard (MA)- One of Today's Top Gainers So Far

karand — Thu, 19 Nov 2009 18:57:49 GMT

Mastercard leads the list of top gainers so far today and is now at $233.76, up $6.48 (2.85%) on volume of 2,724,499 shares traded. Over the last 52 weeks the stock has ranged from a low of $113.05 to a high of $242.93. Mastercard stock has been showing support around $222.35 and resistance in the $234.39 range. Technical indicators for the stock are bullish and S&P gives MA a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on MA the stock seems like it could be a candidate for a January out-of-the-money bull-put credit spread below the 200 range.

Rallying S&P 500 Never Cheaper in Europe on Dollar

klaabukosmos — Tue, 13 Oct 2009 08:34:07 GMT

Investors outside the U.S. are purchasing companies in the Standard & Poor’s 500 Index at the cheapest valuations on record, their buying power boosted by a seven-month decline in the dollar.

The S&P 500 is priced at 19.9 times earnings, the biggest discount to the MSCI World Index of 23 developed countries since May 2003, according to monthly data compiled by Bloomberg. For Europe-based money managers, currency translations push the average cost for a dollar of U.S. profits down to 13.6 euros, the lowest level ever relative to global equities and a discount that investors in America have never enjoyed, data compiled by Bloomberg show.

http://www.bloomberg.com/apps/news?pid=20603037&sid=azUdbVWuzb04

US has $700B and doesnt know what to do with it

Montana — Fri, 13 Nov 2009 12:46:30 GMT

Such a problem to have. The US has $700 billion it didnt expect to have and doesnt know what to do with it. Pay down the debt or use it to help jobs and small business and the housing market.

Paying down the debt is always good, that would halve it. Helping jobs and small businesses survive would be smart. But I think the housing market has had enough help. The overbuilding of homes will start again and the stupid mortgage writing will start again.

No matter what, I am guessing the gov will screw this up and waste the money.

EAT going to $16

suitman — Tue, 17 Nov 2009 15:08:30 GMT

Brinker International Inc.
NYS Symbol: EAT
12-Mo. Target Price is $16.00
Stock is above the 20 day ma and heading to go above the 50 ma.

China Can't Kill The Dollar.

Seti03 — Wed, 18 Nov 2009 19:46:33 GMT

Before President Barack Obama touched down in China for his three-day visit this week, the country's top banking regulator joined the ranks of those complaining about the U.S. Federal Reserve's low interest rates and the falling dollar. The combination, said Liu Mingkang, has fed speculation in stock and property markets (especially in Asia) and threatens the worldwide economic recovery.

What can China do about it? As long as the country banks on Americans to buy Chinese products, economists say, not muchThey don’t have any credibility," said Dan Greenhaus, chief economic strategist at Miller Tabak. China has played the same game for years, keeping its currency cheap so that other countries will buy its goods. The U.S. certainly cares about what its largest creditor thinks, Greenhaus said, but has little reason to change course. A cheaper currency boosts U.S. exports, just as it does for China, and the Federal Reserve won't raise rates at the risk of choking the economy.

The two countries are effectively locked in an embrace: China buys U.S. debt and the U.S. buys China's goods. "It's a symbiotic relationship," Greenhaus said.

The Fed has kept interest rates low to spur borrowing and encourage economic growth, thereby creating a new carry trade. Investors borrow cheap dollars and lend them in a currency from a country with a higher yield and then pocket the difference. The Dollar/Aussie carry trade has been especially popular since the Australian central bank raised interest rates to 3.5%. Each trade sells U.S. dollars to buy Aussies and helps push the dollar lower and the Aussie higher. Remember this next time an analyst says that the Aussie is climbing because Australia is commodities-rich--there's some truth to it, but there's also some momentum at work.

When the dollar falls, China rushes into the market to keep its currency close to 6.84 to the dollar, selling the yuan to buy assets priced in dollars. Letting the dollar weaken against the yuan would make Chinese products more expensive to American consumers, so China keeps its currency pegged and, as a result, has piled up more U.S. debt than any other country. At last count, China held $797 billion in Treasury securities, up from $573.7 billion in August 2008.

Matthew Craft.

Darn

futureusmc432 — Thu, 19 Nov 2009 00:22:35 GMT

Wish I had bought F when it was $1.50.

KWK to $14.25

suitman — Tue, 17 Nov 2009 15:19:05 GMT

QUICKSILVER RESOURCE
KWK NYSE
Relative Strenght is Bullish with resistance at 14.25.
Daily chart has the 20 day crossing the 50 day ma.

Sell at 14.30 for 5% profit.

AA finding support at 13.40. 12% potential

suitman — Tue, 17 Nov 2009 15:36:04 GMT

Alcoa Inc.
NYS Symbol: AA
S&P Recommendation is Buy - 4 stars
12-Mo. Target Price is $18
Has support at 13.30 - 13.40.
Buy at 13.40
Sell at 15.10
Profit 12%

Making money???

coast — Thu, 29 Oct 2009 08:02:59 GMT

Does anyone actually make money trading stocks? If so why are you not a millionaire?

ATVI (Activision)

Wartooth — Mon, 09 Nov 2009 19:21:28 GMT

Invest NOW! Tuesday Activision will be releasing what is expected to be the biggest media release of the year and maybe of ALL time. $500M is excpected the first day in sales. Activision is also expected to do very well through the holiday and into first quarter 2010 after more new releases. Invest now and stay for the long term through the holiday!!!!!! Feeling very Bullish.

For Friday the 13 th

corky — Fri, 13 Nov 2009 05:17:46 GMT

Pre- markets are up a tad bit . So is Gold and silver . but oil is down .

ERGH!!!!!!!!!!!!!!!!!!!!!!!!

futureusmc432 — Wed, 18 Nov 2009 01:04:06 GMT

I sure wish I had bought some F stock back in December when it was 1.60 a share. Would have made some real good money.

Job losses worse than expected

Montana — Fri, 02 Oct 2009 12:35:03 GMT

Just out, payrolls down by 263,000 in September. Unemployment rate at 9.8%