Seems like 171 points isn't much these days. The Dow rose nearly 200 points with little excitement. Early sentiment from IBM on pre annnouncement of earnings served as a gap up and level off market. Todays range was narrow indeed which leads me to conclude that a move is still brewing which might happen tomorrow or wednesday.
AGU and MON seem to be moving higher and might prove to the be hot sector in the early 2008 trading. I am still in watch mode here as I believe we will get a move this week more than likely to the upside which will be short lived.
Last week I noted the weak showing for the gambling stocks and they continued today even with the market up almost 200 points. LVS and MGM can easily see 52 week lows from here while HET although at its 52 week high should follow the group down. Wait for these stocks to flag to get on board short.
Intel reports tomorrow and it will be interesting to see how they will spin the last quarter. Although I am not one to guess I believe chip manufacturer are under pricing pressures and Intel will show declining margins. AMD is totally dead in the water for the last two years and with APPLE using more Intel chips AMD market share should deteriorate over time. DELL is my top pick for a dud of the year award. I think HP and APPLE will slowly prove too much for Michael Dell's company in the future.
STOCK TO WATCH: SOLF
SOLF has been on a run lately with all the solar stocks. I think SOLF trades back into the teens easily. Look at some $20 puts to limit risk.
Monday, January 14, 2008
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