Weekly Stock and Options Newsletter, May 14
The Week Ahead: A recent report showed wholesale inflation recently moderated but was overshadowed by weak retail sales. Although this increases the chance of lower interest rates later this year or next, the April CPI release on Tuesday will provide further clues. Also, listen to Ben Bernanke's speech in Georgia regarding credit derivatives. Wednesday has an important housing starts number for April as well as industrial production figures. Watch for jobless claims on Thursday, and the consumer confidence report for May on Friday.
Stocks to Watch: Shares of Foot Locker (FL) dropped substantially on an earnings forecast below previous expectations although a bounce could be in the offing. Alcatel-Lucent (ALU) shares pushed higher as Q1 profits exceeded expectations and was upgraded based on a cost cutting plan. Lyondell Chemical (LYO) broke-out of a price consolidation upward when Occidental Petroleum (OXY) announced plans to sell its entire 8% stake in LYO for $32.11. World Fuel Services (INT) gapped substantially lower when earnings fell short of estimates.
Special Note: The DOW and S&P 500 continue to spiral north finishing up 6 straight weeks, but underlying indicators such as lagging breadth and extreme high readings of 90%+ on the 10 day daily sentiment index continue to flash cautionary signs of a reversal. Investors and traders can use the current rally to raise cash in winnings stocks and use funds to hedge against other positions. Inverse funds from Rydex Funds or Pro-Funds are a good way to balance risk.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.Click here to open an account.
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: Shares of Foot Locker (FL) dropped substantially on an earnings forecast below previous expectations although a bounce could be in the offing. Alcatel-Lucent (ALU) shares pushed higher as Q1 profits exceeded expectations and was upgraded based on a cost cutting plan. Lyondell Chemical (LYO) broke-out of a price consolidation upward when Occidental Petroleum (OXY) announced plans to sell its entire 8% stake in LYO for $32.11. World Fuel Services (INT) gapped substantially lower when earnings fell short of estimates.
Special Note: The DOW and S&P 500 continue to spiral north finishing up 6 straight weeks, but underlying indicators such as lagging breadth and extreme high readings of 90%+ on the 10 day daily sentiment index continue to flash cautionary signs of a reversal. Investors and traders can use the current rally to raise cash in winnings stocks and use funds to hedge against other positions. Inverse funds from Rydex Funds or Pro-Funds are a good way to balance risk.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
posted by NobleTrading at
3:51 AM
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