{+++}
A rebound by the U.S. dollar and some technical resistance caused stocks to make an early pullback from 2009 highs and spend the rest of the session trading in lackluster fashion. After the close, Hewlett-Packard (HPQ) announced an agreement to acquire 3Com (COMS) for $7.90 per share. In a separate release, HPQ issued preliminary results for the fourth quarter which is above consensus. Additionally, the company raised its 2010 guidance, in-line with consensus.
Nine of ten sectors were in positive territory, led by financials (+1.40%), materials (+0.91%), tech (+0.59%), while utilities (-0.25%) were lower. Advance-declines were positive by 3 to 2 on New York and a like amount on Nasdaq. Up/down volume was a little less than 2 to 1 positive on New York on total volume of just about a billion on a light Veterans Day. Nasdaq traded 1.85 billion and had an almost 3 to 1 positive volume ratio.
I traded very little today because I won’t chase gaps and the pullbacks were hard to get follow through. I traded some MEE, FCX and UYM on a day where there dollar wasn’t that cooperative. The S&P traded through 1100 but didn’t close there, I think traders and the flag were at half staff today because of the holiday, I’m sure it will pick up tomorrow.
The financials have been acting well in here, and short interest in that sector has come down fairly dramatically, if the market wants another leg up, it will need this group on its side. The dollar is still very key to watch here and it seems that not only commodities and materials react positively to a weak dollar but the entire market as well, so it’s still all about the greenback.
I’m seeing more names that I like both long and short, but while we are in this light volume “limbo zone” (1080-1100), I’m keeping my powder dry until the market sends a clearer signal, trading light or not at all is prudent in these periods. Action will come, but on the markets terms, not ours.
My theme continues to be long materials and commodities until the dollar changes direction, we could get an oversold bounce from the dollar here so be careful, however if the dollar breaks last months lows, the market should really get a boost and those groups should fly, so stay tuned.
Have a great night guys.
| Date | Symbol | Long Price | Short Price | Stop | Action | Result P/(L) | Triggered |
| 9-24-09 | |||||||
| MCO | 23.00 | 22.00 | Covered 1/3
Covered 1/3 Stopped 1/3 |
+2.00
+4.30 +1.00 |
yes | ||
| MHP | 26.19 | 26 | Covered ½,stopped on balance flat | +2.00 | yes | ||
| NAV | 40.31 | 39 | Covered 1/3
Covered 1/3 Covered 1/3 |
+1.30
+3.00 +2.03 |
yes | ||
| QSFT | 16.30 | 16 | Sold ½, sold balance(10-13-9) | +.80
+1.70 |
yes | ||
| SIGA | 8.43 | 7.65 | Stopped | -.80 | yes | ||
| MELA | 10.50 | 9.50 | Stopped | -1.00 | yes | ||
| 9-28-09 | COCO | 17.29 | 18.25 | Sold ½
Stopped 1/2 |
+1.00
-.90 |
yes | |
| ZION | 17.39 | 19.00 | Stopped ½ flat | yes | |||
| 9-30-09 | YGE | 11.90 | 12.60 | -.70 | yes | ||
| VNO | 63.00 | 65.50 | flat | yes | |||
| XCO | 19.05 | 18.00 | stopped | -1.05 | yes | ||
| MHGC | 5.60 | 5.20 | -.40 | yes | |||
| 10-1-09 | CALI | 6.35 | 5.50 | stopped | -.85 | no | |
| CENX | 8.97 | 9.60 | stopped | +.50 | yes | ||
| BAC | 16.02 | 16.80 | stopped | -.78 | yes | ||
| AAP | 37.70 | 39.40 | stopped | -1.70 | yes | ||
| 10-05-09 | EXC | 47.78 | 50 | stopped | -2..22 | yes | |
| JEF | 27.60 | 27.90 | Sold 100% (10-13-9) | +1.60 | yes | ||
| TSPT | 14.35 | 13.70 | stopped | -.65 | yes | ||
| HIG | 29.05 | 28.30 | stopped | -.75 | yes | ||
| APT | 6.25 | 6.00 | stopped | -.25 | yes | ||
| 10-7-9 | FCX | 73.43 | 73.00 | Sold half(10-13-9)
Sold balance10-14-9 |
+1.78
+3.10 |
yes | |
| 10-10-9 | PENN | 25.67 | 26.20 | stopped | -.53 | yes | |
| NITE | 23.00 | 22.40 | stopped | -.60 | yes | ||
| O | 22.85 | 24.00 | yes | ||||
| STEC | 25.51 | 25.80 | Covered 1/3
Covered 2/3 |
+1.00
+3.50 |
yes | ||
| ARST | 23.59 | 24.00 | Sold 1/3
Sold 1/3 |
+1.20
+2.20 |
yes | ||
| FIRE | 23.43 | 22.50 | stopped | -1.90 | yes | ||
| 10-14-9 | HRBN | 19.72 | 19.30 | stopped | -.50 | yes | |
| UCTT | 6.95 | 6.30 | stopped | -.65 | yes | ||
| 10-15-09 | MS | 33.35 | 33.00 | Sold all | +2.00 | ||
| 10-16-9 | QSII | 65.76 | 64.00 | stopped | -1.76 | yes | |
| ACI | 24.22 | 23.20 | stopped | -1.02 | yes | ||
| 10-19-9 | MEE | 33.64 | 34.50 | stopped | -1.20 | yes | |
| BTU | 42.35 | 42.50 | sold | +.20 | yes | ||
| FSLR | 146.80 | 152 | stopped | -5.00 | yes | ||
| ABAX | 23.86 | 25.00 | Covered ½
Covered 1/2 |
+1.00
+1.00 |
yes | ||
| PPD | 40.12 | 41.50 | yes | ||||
| MCO | 23.14 | 25.50 | no | ||||
| 10-22-9 | MCRS | 27.40 | 28.00 | Covered 1/3 | +1.30 | yes | |
| AMAG | 35.10 | 35.90 | yes | ||||
| TNDM | 22.92 | 23.40 | Covered ½
Covered ¼ Stopped 1/4 |
+1.90
+2.30 -.48 |
yes | ||
| BAC | 16.05 | 16.60 | Covered 1/3
Covered 1/3 Covered 1/3 |
+.80
+1.00 +1.50 |
yes | ||
| VMI | 75.70 | 76.70 | Covered ½
Covered ¼ Covered balance |
+3.00
+3.00 +4.00 |
yes | ||
| CMG | 81.13 | 83.00 | Stopped | -1.87 | yes | ||
| ROVI | 28,09 | 29.00 | Stopped | -.91 | yes | ||
| CCL | 30.60 | 31.60 | Covered 1/3 | +1.30 | yes | ||
| 10-30-9 | RTH | 90.00 | 92.00 | Stopped | -2.00 | yes | |
| ROST | 43.76 | 44.83 | Stopped | -1.10 | yes | ||
| NIHD | 27.25 | 28.25 | Covered ½
Stopped 1/2 |
+1.90
-1.00 |
yes | ||
| FWLT | 28.12 | 29.00 | Stopped | -.88 | yes | ||
| 11-2-09 | CYOU | 29.00 | 29.80 | Stopped | .-80 | yes | |
| YGE | 11.17 | 11.70 | Stopped | -50 | yes | ||
| JLL | 46.38 | 47.20 | Sold ½
Stopped 1/2 |
+1.30
-82 |
yes | ||
| XHB | 13.70 | 14.30 | Stopped | -.60 | yes | ||
| WFC | 27.40 | 28.20 | yes | ||||
| 11-5-09 | FUQI | 19.14 | 20.00 | yes | |||
| CMG | 87.50 | 89.50 | Stopped | -2.00 | yes | ||
| EXPE | 23.60 | 24.70 | Stopped | -1.10 | yes | ||
| 11-9-09 | BBT | 23.83 | 25.80 | no | |||
| FCX | 80.25 | 78.00 | no | ||||
| AIG | 32.66 | 34.50 | no | ||||
| KRE | 19.45 | 20.50 | no | ||||
| MEE | 33.68 | 32.00 | yes | ||||
| XLF | 13.62 | 14.10 | no | ||||
| BEC | 65.50 | 68.50 | yes | ||||