Day Trading Thoughts For Fri. Apr. 3

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erikrkolodny

ET Sponsor
Yesterday, a G-20 summit took place. The G-20 is a group of nations representing about 90% of the world’s population; the leaders meet every so often (along with the president of the E.U. Commission and the chief of the UN, World Bank, and IMF). The original point of the first summit in 1999 was to allow for developing nations to have more of a say in international discourse. This point remains intact, but the shift has focused (naturally) to the self-interests of each of the members much less the bloc itself. The point of this particular meeting was that the G-20 aimed to restore stability to the financial system much less economic growth. The G-20 nations desire to have worldwide cooperation on global stimulus measures, new goals for global regulation of financial instruments and entities, and a means to make it much more difficult to create a tax haven. The main idea is that, so far, there seems to be an issue with the first thought in that there was a distinct disagreement between much of Europe and the U.S. as to how to restore financial stability. So, what may work state-side cannot be applied overseas (and vice versa) simply because the leaders of the European and American nations cannot agree on a uniform way to proceed. Furthermore, while there are always protests, the near riot in London on Wednesday indicated what could be a long hot summer ahead if the frequency of the protests against the worldwide financial system increases. For day traders, all we can do is pay attention to the tape. Despite the images of bloody protesters and police using nightsticks- on live TV- the market shook off those images in rallying very nicely yesterday. Thus, it is urgently important to be aware of the worldwide schematic, but realize we are not trading on what may be as day traders; rather, we trade what is actually occurring rather than what (some of us) think should be occurring.

Markets were relative placid overnight throughout the world. Markets were up about ¼% on average in Tokyo and Hong Kong with prices mixed in Europe as the FTSE is down ½% ranging to the German DAX up ¾% as of this writing. .With a neutral jobs report and RIMM earnings terrific, there just is no major impetus to sell stock right now. Look for the rally to hold in a quieter day than recent with the corollary that financials- the recent leaders of the pack- trailed behind yesterday. So, if they weaken a bit, it will temper the overall strength.



Reiterating-
Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea.
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-



Good- The following stocks have good news and/or a strong technical pattern

RIMM – outstanding earnings; beat on quarter and raised guidance; other big-cap tech should follow such as AAPL, IBM, AMZN, and GOOG along with competitors such as PALM

GPN- great earnings

GILD –positive phase III results on its blood pressure drug

CELG- mentioned positively on “Mad Money”

YRCW- among the truckers which closed near a high

CLNE- closed near a high of day

ASCA, MGM- among casino stocks closing very strong

AWI- continued its recent run-up with huge gains yesterday in closing near its high
Bad-The following stocks have bad news and/or a weak technical pattern

MDRX- poor quarterly earnings

MU- missed on quarter

KIM- doing a 70 million share offering to raise cash

CYOU- closed on a low

FSLR- filed for a mixed securities offering

CAE- poor earnings

USO- mentioned negatively on “Mad Money”

NVO- negative results from the FDA over the Liraglutide trial yet the company claims that the company’s 2009 earnings view should remain intact

Earnings:

none

Good luck today.

Erik R. Kolodny
 
Quote from dealmaker:

Stock prognostication on tv just does not work. Cramer is irrelevant.
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I agree with you 100%. Just wondering what that gas bag had to say about a tracking etf.
 
First, I have no idea over the long-run what Cramer's record is nor do I care. The thing is that whatever he says is in play inevitably that afternoon and the next day. One of the best trades I ever made occurred when he recommended Steven Madden...symbol SHOO. But when he said "SHOO," the ticker "SHOE" exploded. SHOE does not exist anymore (at least not on NASDAQ) which shows you what kind of shape the company was in yet it leapt 20% that afternoon...I shorted every share I possibly could. And when he said "Remember, that is SHOO...not SHOE," I covered it all unchanged from the close fast. Bottom line: one can make use of what he does the next day which is why I mention his stuff every day...to whit, CELG is near its intra-day high as I type this.

This is what he said last night, quoting from TheStreet.Com's page:

"In this segment, Cramer added the oil ETFs to his list of the worst investments out there.

Cramer took aim at the United States Oil (USO Quote - Cramer on USO - Stock Picks) ETF in particular, calling the fund simply a travesty.

Cramer said the United States Oil fund is not what it promises. The fund does not track the price of crude as it claims. Since the fund's ineception, crude oil has fallen 23%, yet the fund is down almost twice that at 54%. Just this year, oil is up 18%, but the United States Oil fund is down 6%. This fund has nothing to do with oil at all, he said.

Cramer said the problem with the fund is that it doesn't buy oil, and instead buys oil futures. Since oil futures expire, the fund rolls over its contracts every month, incurring costs and expenses it'll never recover. Cramer said while the operations of the fund are legal, and listed in the perspectus, investors need to steer clear at all costs."





Quote from jsv416:

I agree with you 100%. Just wondering what that gas bag had to say about a tracking etf.
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