Stocks to Focus for Tuesday – April 21, 2009

I expected some pause or a moderate decline in averages following Friday’s option expiration …. . but, what happened was a  brutal Monday at the market.  Sellers dominated and crushed stocks and handed major averages worst percent loss in more than a month. All 10 major sectors in the S&P 500 suffered sharp losses.  Financial sector was the worst performer with 11.4% decline.  As I noted last night, there’s still uncertainty about the health of banking sector and what kind of a role the government would play.  Day to day news events dictate the sector performance.  Be vigilant for news events and be agile in navigating the markets during the next couple of weeks. 

For the day, Dow fell 290 points  or 3.6 %, to 7842.   S&P 500 lost 37 points or 4.3% and closed at 832, and the Nasdaq fell by 65 points or 3.9% , to 1608.  Crude futures fell $4.45 to $45.88 a barrel, while gold rose $19.60 to $887.50 an ounce.

In my opinion, nothing has changed with the banks from last week or a week before to this week.  The numbers that BAC announced are not that bad for the markets to move that negatively.  It is the negative perception that led to profit taking and intense selling all day today!

I’ll not have new picks for Tuesday.  However, I would not mind buying FAS (3X long in financials) if it trades above $6.96, and with an initial profit target of $9.60.

Happy trading ….

TaurusTrader

http://www.taurustrader.wordpress.com

Stocks to Focus for Monday, April 20, 2009

YOU make hay when it’s hot and sunny …. You make money when the markets are HOT!!!  The markets have been hot for the past few weeks … 

TaurusTrader portfolio had a great week ….  We were able to sell  6 positions for profit.  CMED (12.9%), AGU (10.7%), TNA (18.7%), WNR (15.3%) and GNK (18.0%) hit their profit targets.  GNK was sold on Friday (Apr 17) @ 18.50.  We added GNK on April 14 for $15.67 … that’s an incredible 18% profit in just 3 days!  WNR was also sold on Friday for $13.60.  WNR was bought on 3/17/2009 for $11.80.  During the week, we also liquidated 50% position in AMR for a 31.1% profit.  XRT was stopped out, but we still made >1% profit on the position.  All remaining positions advanced for the week.

By the end of the week TaurusTrader swing portfolio had positions in –  AMR (50%), FCN, HON, HSP, WDC, EXP, and FMX.

This coming week should be interesting as more and more companies stepping n to earning confession. 

BAC released Q1 earnings this morning …. it earned (EPS 0.44) more money in Q1 compared to all of last year!  Banking sector earnings look decent.  However, the threat of ‘stress test’ and lack of details there off, credit card defaults, and commercial real estate worries – are holding back any advance in stock prices. 

With the global economy showing signs of stabilizing, M&A activities have started to emerge. ORCL announced a $7.4 billion ($9.50 a share) deal to acquire JAVA this morning, triumphing over IBM  …. these are good signs.

For Monday … I’ll again be on the side line, but will be closely watching the technology, transport, and banking sectors for new opportunities.

Happy trading …

TaurusTrader

http://www.taurustrader.wordpress.com

TNA sold for 18.7% profit and AGU sold for 10.7% profit …. No Picks for Friday

I did not spend much time following the markets today … As I informed you in my earlier post that I was busy taking care of my other business interest in agriculture (ZeaMax Research) …. So, I will not provide market recap, but will straight proceed to discussing TaurusTrader portfolio.

It was a great Thursday for TaurusTrader portfolio.  AGU hit its profit target ($41.50) for 10.7% profit.  AGU was bought on 3/19/2009 for $37.50 a share. 

TNA was even better …. it made 18.7% profit in less than 2 weeks.  TNA was bought on 4/02/2009 for $20.05 a share, and sold today for $23.80. 

TNA and AGU make  five trades closed for profit this week.  Other positions closed were – CMED, AMR and XRT.  XRT  however, was stopped out, but the trade was still profitable!

TaurusTrader swing portfolio currently consists of – WNR, AMR (50%), FCN, HON, HSP, WDC, EXP, FMX, and GNK.  All the picks advanced today!  Incredible!!!

Tomorrow is option expiration day …. too much volatility is expected.  So, I’ll wait till next week for new picks.   PATIENCE PAYS …..

Have a great day and a superb weekend ….  If you had invested with me, you have already assured yourself a fantastic weekend!!!  

TaurusTrader

http://www.taurustrader.wordpress.com

Stocks to Focus for Thursday – April 16, 2009

Wednesday’s recap:  What a mad dash to finish …. Stocks surged in the last hour before closing, lifting all three major indices from deep red to green.  

The last-hour surge pushed the Dow up 109 or 1.4%  to 8030.  The S& P 500 index rose 10.6 points  or 1.3%  to 852, and the Nasdaq snuck in to green with a final minute thrust and edged up 1.08, or 0.1% to 1627.   Crude 16 cents to settle at $49.25 a barrel, while gold was down $1.50 to $893.50 an ounce.

The impetus for the final hour turn around was provided by the observation in Federal Beige Book that economic contraction may be slowing down.  The market interpreted this as ‘the end is closer’ ….

TaurusTrader portfolio had a decent day.  AMR was one of the stars in today’s rally, hit it’s first target of $4.85 for a profit of 31.1%.  50% position in AMR was closed today.  For the remaining 50%, the second target is $6.50.  XRT was stopped @ $24.60 (stop moved up once), but still made over 1% profit.  AGU again came very close to hitting the profit target for the second day in a row.  FCN, HON, and EXP had decent gains.

Picks for Thursday, April 16:  An increasing stream of quarterly results from companies is likely to add to the market’s volatility.  Reports from JPM andGOOG on Thursday could reshape how investors feel about the financial and technology industries. Figures are also due on home construction and unemployment claims.

I’ll wait for reports from JPM and GOOG before committing fresh money on new picks.  However, if JPM reports a great quarter, and the market responds positively, I would buy FAS (Financial 3X long ETF) at around $9.50, and hope to ride the momentum till it hits $11.60.

I’ll also have following stocks on my radar for any swing trading opportunities:  WFC, MS, MELI, IPI, HP, TCK, and BX

That’s it for now …. Good luck trading.
TaurusTrader

http://www.taurustrader.wordpress.com

Patience Paid off …. AMR nets 31.1% Profit …

Patience paid off with AMR ….

AMR has hit its first profit target of $4.85 this morning.  TaurusTrader liquidated 50% of position in AMR for a nice profit of 31.1%.  If you remember, AMR  was bought at $3.70 and added to TaurusTrader portfolio on March 16.

The second target for the remaining 50% of AMR is $6.50. 

AGU is very close to hitting its target @ 41.50 …. Hopefully, we would be able to close it before the end of the day!

Happy trading …

TaurusTrader

http://www.taurustrader.wordpress.com

Stocks to Watch for Wednesday – April 15, 2009

Tuesday’s Market Recap:  Markets pulled back responding to unexpected poor retail sales data and also on worries about banks ahead of key earning reports.  Markets were in extremely overbought condition, and in my opinion, this pull back was needed. 

For the day, Dow lost 138 points or 1.7%, to close at 7920. The S&P 500 lost 17 points or 2%, to 841, while the Nasdaq shed 28 points or 1.7%, to 1626.   Crude fell 64 cents to settle at $49.41 a barrel, and gold lost $3.80 to $892 an ounce.

Financials led the stock market lower on Tuesday as investors brushed off an upbeat earnings by GS and focused on disappointing economic data.  Retail sales for March came in at -1.1%, far below the expected, a 0.3-percent increase.  Excluding the autos, sales fell 0.9%.  January and February sales figures were, however,  revised upward.  Still, the unexpected sharp drop spooked the market.  Meanwhile, the PPI dropped 1.2%.  Excluding food and energy costs, core PPI was flat.  Business inventories dropped 1.3% in February as expected.

A spirited speech by President Obama explaining the origin and nature of the economic crisis, and an all out effort by the administration to grow the economy – could not inspire the markets.  Similarly, Ben Bernake’s speech was also ignored despite his observation that “the economic decline is slowing down off late”

TaurusTrader portfolio closed a position for profit and added a new position.  CMED hit the profit target of $18.60 in the morning for a 12.9% profit.  AGU and AMR came very close to hitting target before retreating. Very volatile  TNA lost about 10% for the day.  Today’s pick, GNK was bought at $15.67.  The other pick, FAS did not activate the buy limit, hence was not bought.

Focus list for Wednesday:  Earnings and economic data will be the center of focus again on Wednesday.  INTC reported earnings of 11 cents a share after the close on Tuesday.  This beat the street expectation handily, but the shares were down in after-hours trading as the chip giant refused to provide an outlook.  The rail-road giant, CSX was up over 3% in the after hours trading following it’s better than expected earnings report.

On the economic front, the scheduled events for Wednesday include:  Weekly mortgage applications; NY Fed Empire State survey; CPI; industrial production; weekly crude inventories; NAHB housing index; Fed’s beige book.

Markets are still in a flux …. It is hard to predict the short term direction.  TaurusTrader portfolio has 12 open positions, and is well diversified.  I’ll be watching my positions with tight stops.  I do not want to risk more capital on new positions.  I’ll be happy to watch from the side lines, at least for now on Wednesday.

If there are questions, please do post ….

Happy trading …

TaurusTrader
http://www.taurustrader.wordpress.com

CMED Hits Target for 12.9% Profit …. GNK bought.

CMED has hit the profit target this morning and sold @ $18.60 for a nice profit of 12.9%.  If you remember, CMED was bought at $16.48 and added to TaurusTrader portfolio on April 06.

Today’s pick, GNK was activated this morning and bought for $15.67 …. GNK is already up nicely and trading @ $16.13 now (10:10 am).

Market is down triple digits following a disappointing retail data.  Hope it will turn around before close!

Happy trading …

TaurusTrader

http://www.taurustrader.wordpress.com