The Wrap 2/17/11


After digesting the latest dose of data the major equity averages brushed aside some fainthearted selling to extend their climb to new two-year highs. Natural resource plays led the move for the second straight session. After the close, APEI, ARUN, ATHN, BCSI, BRCD, BUCY, BEAT, CECO, CF, CLWR, INTU, JWN, SPWRA are the most notable names that reported after the close.

All ten sectors were in positive territory, led by materials (+0.9%), energy (+0.8%) and consumer staples (+0.7%).

Tomorrow morning before the open, two economic reports are scheduled to be released: CPI (Consensus 0.3%) and Core CPI (Consensus +0.1%) and 2) Initial claims (Consensus 408K) and Continuing claims (Consensus 3900K).

Tomorrow before the open look for the following companies to report: CRMT, AGP, B, BRC, BAM, CPN, CPB, DLR, EGO, ELT, GNRC, HS, HMSY, HPT, LNCE, LPNT, LECO, MHR, NVE, PNW, PGN, RUTH, SFL, SFUN, TA, UPL, YGE, and YTEC.

Oil moved higher today on unrest (rioting) in Bahrain. Where is Bahrain? Right on the Persian Gulf.  It only produces a couple of hundred thousand barrels of oil a day (small) and it’s only three times the size of Washington DC., but strategically it is home to the USA’s Fifth Fleet and it is close to the Straits of Hormuz, which is infinitely more important than the Suez Canal.

Naturally there is worry that something could go terribly wrong over there , especially when you add in the strife in Egypt, Iran and Tunisia. Unsettling to say the least. My spin is that nothing will happen to block the Straits, but the market is jittery just the same. If there is a blockage, we will all wake up to $120 oil (at least), it will be that significant. Let’s hope for the best. Right now the Mideast is a snow globe that is being shaken violently.

We took some profits today and added some new names in X and LMLP intraday. Please check the evening P&L for adjusted stops. Have a great night.

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