Tag Archives: WDC

Stocks to Watch for Friday April 3, 2009

Thursday’s market recap: Another great day!  Even though it could not hold on to it  at close,  Dow breached 8000 mark for the first time since Febrauary 9.  Nasdaq is now positive for the year!  S&P somehow managed to hold above the critical 833 support level.

The Dow gained 216 or 2.8%, to close at 7978.  It had earlier gained as much as 314 points.  The S&P index gained 23 points or 2.9%, to end the day at 834. The Nasdaq rose 51 points or 3.3%  to close at 1603.

Crude rose $4.25 to settle at $52.64 a barrel, while gold fell $18.80 to $908.90 an ounce.

Traders were in buying mood.   Markets opened up nicely in the morning despite some negative data on jobless claims.  There were again small doses of good data that helped.  Banking sector had a some relief with FASB’s decision to relax mark to market rule on toxic assets.  Markets also liked the news coming out of G-20 meeting in London of heads of states.  G-20 leaders decided to fund IMF over $1 trillion to help troubled nations around the world, and also agreed to formulate stricter global regulation of financial institutions.  ECB lowered interest rate by 0.25%, to bring the rate down to 1.25%.  Factory orders posted a larger increase in February.  This news came on the heels of yesterday’s better than expected data on pending home sales, manufacturing activity and auto sales.

TaurusTrader’s swing portfolio had a nice day.  All 4 of yesterday’s picks – EXP, WDC, HSP, and TNA, were bought, and had decent  gains.

Focus list for Friday, April 3: There are signs to support that this rally may have more ‘juice’ left in the tank to run.  As I said in my earlier posts, small doses of good news have started coming in indicating that this recession has started to recede.  Benefits from innovative plans, at least some, put forth by the new administration appear to slowly seeping in to the economy.   CNBC’s Bob Pisani observed that mutual funds are getting back to the market to scoop up stocks.   Commodity prices are going up.  Copper just made a new 5-month high.  Copper is a good indicator of economic growth.  Similarly the transportation index, which went on a tear today!   I also expect that the Banking stocks to continue their momentum following the boost they got from Thursday’s favorable mark to market ruling by FASB.  RIMM reported exceptional quarter after Thursday’s close, and was up over 20% in aftermarket hours.  Folks, these are some good signs ….

However, we can’t let our guard down.   The optimism could be easily crushed if tomorrow’s jobs report surprise us with lousier than lousy expected data.  Economists predict  a loss of 654 K jobs in March, and unemployment rate  to rise to 8.5%,  from 8.1%  in February.

TaurusTrader swing portfolio picks for tomorrow, Friday April 3 are:

  1. FMX – Buy above $27.08, stop at $24.90, target $30.60
  2. BCE – Buy above $21.77, stop at $19.90, target $24.50
  3. WFC – Buy above $16.26, stop at $14.90, target $19.00

There are no day trade picks for Friday.

Please follow all trades with protective stops. The markets  may be kind to you,  but  it can turn against you any time unexpectedly!

Good luck trading.

TaurusTrader

http://www.taurustrader.wordpress.com

Market Watch for Thursday – April 2, 2009.

Wednesday’s recap: What a way to begin the new quarter … down by triple digits at open and up by over 150 points by close!! Some sense of optimism is slowly building about the economic recovery. Today’s dismal opening was attributed to a couple of factors. News from Asia were not good. China’s manufacturing index came in lower than expected, and Japan’s business sentiment among big manufacturing firms came in at a record low. Further, prior to markets opened, the ADP report indicated a dismal private sector employment condition, a drop by 742,000 in March. This figure was higher than anticipated. So, the markets opened in deep red.

As the day progressed, small doses of good news trickled in, and the markets responded. The next economic reports came in showed a rebound in pending home sales and improving manufacturing activity. Despite massive public protests, there’s some good news out of G-20 meeting. British Prime Minister Gordon Brown said that the G20 was close to agreeing on global reforms for the financial system. This was not expected.

The Dow rose 153 points or 2%, to 7762. The S&P 500 index gained 13.2 points or 1.7% to close at 811 and the Nasdaq picked up 23 points or 1.5 percent, to close at 1552. Crude oil fell $1.27 to settle at $48.39 a barrel. Gold prices rose by $2.70 to $927.70 an ounce. The dollar was mixed – slightly weaker against the yen, but was stronger against the euro and pound.

Chemicals, gold miners, banking, and technology stocks had a stellar day. TaurusTrader had an OK day. No big gain or losses. No position was stopped out. However, it was a decent day for day trading. Had a nice success with TNA and FAS among the picks.

I also initiated small positions in MS ($22.30) and WFC ($13.75) at the open today ahead of FASB’s decision on mark to market scheduled for tomorrow. I wrote about it in my yesterday’s blog.

Stock Picks for Thursday, April 2: There are good news coming in small doses. The worst is not over, yet. The pain is still there, but there is some optimism building that the pain from recession is beginning to recede. If FASB modifies the mark to market rule tomorrow in favor of banks, it should bode well not only for the banking sector, but also to the whole market in general. The markets may have already baked in for a slight disappointment in Friday’s jobless data. Unless it comes out real bad and out of whack, the markets should do fine. But, any improvement in employment numbers, however unlikely, should help vault markets higher …. Omen!!

I would like to add the following stocks to TaurusTrader swing portfolio:

  1. EXP – Buy above $25.50, stop at $22.75, target $28.50 (volatility is high)
  2. WDC – Buy above $20.01, stop at $17.98, target $23.00
  3. HSP – Buy above $31.41, stop at $28.60, target $35.50
  4. TNA – Buy above 18.60, stop at $15.75, target 21.50 (very volatile and risky)

Chemical sector is showing some momentum.  If you have additional capital to commit, I would suggest looking at DD and DOW.  Both these picks also have strong ag portfolio that compliment  their chemical business.

I’ll not day trade tomorrow as I’ll be away on my other business interest that I detailed in my earlier post on Wednesday.  However, if interested, the financials may again provide some opportunities for profitable trades.  My favorite ones are – WFC, FAS, and MS.

MON is scheduled to report earnings prior to open on Thursday.  Expect high volatility in ag and fertilizer stocks in sympathy.

If there are questions or comments, please do post.

Best regards, and happy trading ….

TaurusTrader

http://www.taurustrader.wordpress.com

WDC sold for 11.8% profit ….

TaurusTrader sold position in WDC for $17.10 for a nice 11.8% profit in a little over 2 days!!  WDC was bought on 3/10/2009 for $15.30.

The call option position, WDCDV (WDC April 12.50 call) is also appreciating nicely, and is up over 67%.  Last time I checked it was trading at $5.00.  The call was bought on 3/6/2009 for less than $3.00 per contract.

It is a nice day in the market …. hope you are having a great day too …

I’ll post the market recap and my picks for tomorrow later in the evening!

TaurusTrader

Watch List for Friday, March 6, 2009

Thursday’s Recap:  So much for that one-day rally on Wednesday …. Things got back on to the downside in a hurry today, recording 5 down days out of past 6 trading sessions.   Historic record for lows kept falling  with both Dow and S&P.  Nasdaq barely closed above November 21, 2008 low.

Bad news were abundant – survival of GM in question, continued worries with GE capital, City trading like a penny stock, banking sector woes getting worse and now spreading to somewhat healthier banks, poor jobs data, deteriorating housing value and mortgage crisis, confusion abound from law makers, Obama administration still mum on banking solution, disappointing news from China on additional stimulus, market wizards on CNBC huffin’ & puffin’,  etc etc etc.  Hardly anything positive.  Result – another day of bloodshed on the street and end to yesterday’s sucker rally. 

Even though the decline was wide spread across sectors, the financial stocks were mercilessly clobbered.  JPM and WFC recorded multi-year lows and City now trades like a penny stock.  The disappointing news from China on additional stimulus did not go well for Basic materials, transportation, energy, and shipping stocks.  They lost way more than what they gained on Wednesday on the heel of positive rumor. 

Dow closed at 6594 (-4.1% or -281.4 points), S&P at 682.5 (-4.3% or -30.3 points), and Nasdaq at 1299.6 (-4.0% 0r 54.1 points).

None of our picks for Thursday (JOYG, MS, MR, SOHU and WDC) triggered.  But, some stocks on watch list had a decent day.  BKE, WMT, and ADBE had nice gains.  We were stopped on PALM (-7.7%).

Picks for Friday, March 6, 2009:  I do not have any stock picks for Friday.  It is too risky to go long before the release of unemployment numbers.  Market is extremely jittery and full of negative sentiments.  DEFENSE is the name of the game.  I still believe that the selling is overdone.  There are a bunch of ‘good’ stocks that got punished unfairly along side some deservedly bad ones.  Sanity will prevail and these stocks will get positive attention eventually.  I’ve PATIENCE, I’ll wait.  I have some defensive plays in the mean time that might pay off while we wait …. I’m going to suggest some ‘option’ plays that would allow us to risk a lower capital.

1.  Buy BIGCC April 15 Call on BIG for $3.00 or less.  Unwind the position if BIG drops below 14.90 by April 3.  Thrifty discount retailer BIG reported great earnings yesterday.  The stock responded well to the report, and it closed at $17.04 today.  The option premium is relatively cheap.  And, there is a good potential for upside move.  My target is 70% before April 3. 

2.  Buy WDCDV April 12.50 call on WDC for $3.oo or less. Unwind the position on April 3 or earlier if WDC drops below $12.50 or you have 100% profit.  The option premium is relatively cheap. WDC closed at $14.50

You may want to look at NLY.  The stochastics on this stock is very oversold.  There is some level of support around $12.00.  NLY closed at $12.50 today.  It was in the positive territory for most of the day before losing steam just before the close.  NLY yields a hefty 15% annually or around $0.50 a share per quarter.  Best strategy is to buy the stock, and write “out of the money” covered call option – collect the premium, and collect that hefty dividend, while you wait for the stock to appreciate. 

Good luck and have a great weekend ….

TaurusTrader

http://www.taurustrader.wordpress.com