Two Ways To Play: Netflix Logs On
Strengthen your portfolio in good times and bad.
Crude Squeezes by a Record
According to Bloomberg, lawmakers in the US are seeking to put limits on commodity speculation after a short squeeze in crude oil sent it to a record gain.
Contracts for October delivery climbed more than $25 per barrel in New York, the biggest increase since Nymex crude started trading in 1983. This prompted the Commodity Futures Trading Commission to say it was "closely monitoring" the situation for potential price manipulation. "No one should be trying to game our nation's commodity futures markets," said Stephen Obie, acting director of the commission's enforcement division.
From the Bull Pen: Was the move in oil simply a short squeeze or is it really a consequence of the Treasury plan? A break is needed, but bulls can consider entry on a pullback to the $81-83 level in the USO.
From the Bear Cave: Bears can play the downside in Darden Restaurants (DRI). Buy stops can be set near $32.
Netflix Pact with CBS and Disney
The Wall Street Journal reports Netflix (NFLX) has signed deals with CBS (CBS) and Disney (DIS) that will allow Netflix subscribers to watch shows over the Internet a day after the original air dates. For Netflix, the deals are seen as an effort to diversify beyond the DVD rental business and into the new era of online content delivery - pioneered by Internet companies like Apple (AAPL) and Amazon (AMZN). Analysts believe television watchers will gravitate to online video as the technology gets better.
From the Bull Pen: Those bullish on Netflix can set a sell stop near $29. But Disney may be the better long-term play. Bulls might be able to catch the stock on a pullback to $32.
From the Bear Cave: Bears can consider the downside in online retailer Amazon. Enter if and when the stock can rally toward the $80 mark. Buy stops be set above that level.
For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.
Quick Check Around the World
Asian trading closed with the Hang Seng -3.87%, Sensex -3.03%, Taiwan +1.17% and Shanghai -1.56%.
Over in Europe, we see the CAC -2.23%, DAX -1.04%, FTSE -2.83%
As of 8:35 AM EST, S&P futures are down 4.2 points to 1209, and Nasdaq Futures are off 4 points to 1665.
A Look At Commodities
Commodities are mostly lower. Crude oil -2.02 to 107.35, Gold -10.3 to 894.00, silver +0.975 to 13.400, and copper -1 to 325.60.
The dollar index is +0.280 to 76.431.
On the Radar
10:00 Richmond Fed Mfg. Index: -12 cons.
10:00 House Price Index (m/m): 0.3% cons.
Click here for the full radar.
Turnaround Tuesday? Good luck!
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