It may not seem (feel) like it but the S&P 500 actually made a new closing high for the calendar year and it just a couple of points away from its 2004 high. So while the Nasdaq is still 5% off of its 2005 high there is a lot of money being put to work. Below are charts of some of the sectors (Housing, Steel/Industrial Metals, Oil/Energy, Emerging Markets) that have been rallying over the last few weeks. Many of the stocks in these sectors have absolutely been on fire. If you’re looking for longs these sectors are the place to be right now.
Currently holding:
Long – PARL, STZ
Short – None
Looking for swing trade entries in:
Longs – ADBE, APCC, ASCL, BOL, DECK, NP, NVT, PRU, THQI, TSCO
Shorts – GVHR, HELE, YCC
Potential day trades:
(From Briefing.com)
Gapping Down
BIIB -40% (also Deutsche dowgrades to Sell; Bear Stearns downgrade) and ELN -65% announce voluntary suspension of Tysabri, EMITF -12.1%, PDLI -8.3% (in sympathy on BIIB/ELN), INNO -7.4% (reports Q4 results), F -5.7% (BofA cuts to Sell), KG -5.4% (terminates deal with MYL), DNDN -5.1%, VTAL -3.5%, YELL -3.4% (to acquire USFC), SEPR -3.3% (in sympathy on BIIB/ELN), GM -3.2% (BofA cuts to Sell), NOVL -3.2% (downgraded to Underweight at Prudential), TIF -3.2% (reports JanQ), MAY -1.7% (to merge with FD), AMGN -1.3% (Govt’s competitive acquisition program seen as a negative for AMGN).
Gapping Up
RETK +41% (to be acquired by SAP), USFC +24% (to be acquired by YELL), SRA +21% (BIIB/ELN Tysabri news seen as positive for SRA, SHR +6.4% and CHIR +3.5%), ONCY +20% (receives FDA clearance to begin a Phase I/II clinical trial), BOOM +8.1% (continues 29% move on Friday), CTMI +7.3% (announces dismissal of patent suit), RAD +4.1% (strong, flu-driven sales creates trading opportunity — Goldman), MYL +3.3% (terminates KG merger), SINA +3.3%, GRU +2.3%…. Under $3: MCEL +48% (co and Dow Chemical announce joint development program), FFED +41% (reports Q4 results), DLGS +21%, NYER +5%.
