...CUTS like a knife
Thursday, November 1, 2007 at 08:30AM ..now it cuts like a knife-- yeah
but it feels so right..
Oh now it cuts like a knife..
Yeah..but it feels so right...Yeeah..
Now we truly know what our fellow Canuck was singing about !. It was about consecutive rate cuts from the Fed down under. Yesterday.. the shorts were squealing and the longs were singing as the market squeezed the shorts lights out. You can read all about it and you will hear all about the ramifications of the Fed cut....let the spin begin.... but we've got people to see.....things to do....most importantly stocks to trade!. We are now done with October and are on to November, which is always a much better month of trading as we lead in years end. Historically, consecutive rate hikes are liked very much by the markets, it seems the market forgot that for a few minutes yesterday before getting its memory back and started to look forward........So, let's get on to some new names emerging from earnings that we are monitoring and/or trading ...
MA, this was on all screens premkt yesterday as it traded off an excellent report. If you've been here for awhile you remember MA well and had its earnings day circled..well we try to circle as many as we can for you on our earning dates page. The company said any softness US side will be "cushioned' by Global growth. This was the same song from previous Q's and this idea has always worked well for MA's stock price. If you didn't get a position yesterday, you might want to wait for a pullback, a pullback on a downgrade based on valuation (you always get these after a fast trip up) and make this a quality holding. Reports Q3 (Sep) earnings of $1.80 per share, excluding $0.51 from the partial sale of the co's investment in Redecard S.A. in Brazil, $0.38 better than the Reuters Estimates consensus of $1.42; revenues rose 20.1% year/year to $1.08 bln vs the $1.03 bln consensus.
PSEM,SIMO,SIRF,MICC.. have you noticed the reaction of some earnings the barely beat or giving in line guidance moving nicely (PSEM SIMO). Well, if you didn't we're telling you now!. Simply, we haven't seen such action in a long time and this is a good thing as we will have more opportunities to trade. It looks like we won't need a big EPS headline to get a stock moving this Q. We've bunched these 4 to watchlist..you must have 4 lags you can move a screen back and replace with these. We'll do some homework on these over the weekend and if you see the names here into next week....well then you know it should be on your primary screener this Q. MICC is a foreign telecom/cellular name you may remember from DJIM when we were trading it as a takeover play with a few like China Mobile interested. Anything foreign with its foot in a growth business is good with DJIM.
STV, LFT...as we scratch our heads, we come up with ideas it seems.;). The action in these two has been surprising in one sense, but that is only if you are thinking the past here and expecting momentum to be here on a daily basis. Yesterday, we had interesting action in some China names early, the FXI was heading to recent highs, the China energy plays were moving nicely and seemingly there was one thing missing in this scene and that was the participation of these two IPO names. What reaffirmed our long term and even short term view of these IPO's is that they behaved so well as the market tanked after the Fed decision as we noted. Well, we all know what happened after as these spiked so nicely. If you're in for the long term this should give you confidence, if you're short term you now know the power and speed these have and had yourself an easy in and out trade. STV has been ranging nicely and there was powers at work eating up the $38.00 giving it even more support. We hope this move is the start of these getting back on radar of momentum traders. Also YTEC's chart is coming together, so a closer eye should be kept on it. EJ another new high.
CYNO, GTI , past DJIM plays out with earning this morning to watchlist.