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Before The Bell: Mobile Phone Battle; Commodities Surge


Record highs in commodities and war in mobile phone industry.


Morning Perspective: Mobile Phone Battle

According to Bloomberg, Nokia (NOK) and Samsung, the world's two largest makers of mobile phones, gained more ground in the mobile phone market. Market share by unit sales for Nokia increased to 40.4% vs. 36.2% from a year earlier while Samsung jumped to 13.4% from 11.3% according to a survey by researcher Gartner Inc. Motorola (MOT) came in third place but its market share fell to 11.9% from 21.5% as it struggle to find a replacement for its Razr model. Rounding off the top five were Sony Ericcson and LG. Professor Quint Tatro mentioned Nokia yesterday in his article Base Metals, Tech Are Good Plays.

From the Bull Pen: Professor Tatro likes the upward momentum in Nokia. Sell-stops can be placed below the 50-DMA ($36). Another mobile maker which just entered the top ten in market share was Apple (AAPL); sell-stops can be set below recent lows ($115).

From the Bear Cave: Bears can play the downside in MOT; buy-stops above recent highs ($11.50). Bears are also skeptical of Research In Motion's (RIMM); sell-stops above $110.50.

Commodities Surge

Bloomberg reports commodities prices surged last night in overseas trading as the dollar hit record lows. Crude oil rose to a record above $102 in electronic trading on the New York Mercantile Exchange while gold reached a record in London and silver made a new 27-year high. Meanwhile the dollar fell against 15 of the 16 most-active traded currencies and reached an all-time low of $1.5088 per euro, the lowest ever since the euro was introduced in 1999. For more insight, read Professor Mark Bloudek's column Will High Commodity Prices Last?

From the Bull Pen: Bulls expect continued outperformance in the commodities and can ride the upside momentum using the Gold ETF (GLD), sell-stops below $90; Silver ETF (SLV) sell-stops below $180; and oil ETF (USO), sell-stops below recent lows at $76.

From the Bear Cave: Dollar bears can continue to play the inverse ETF, dollar bearish fund (UDN); sell-stops below $28.

For more ideas, see Minyanville's Spotlight Stocks.

Quick Check Around the World

Traders ready for a wild Wednesday as Asia is trading green and Europe is in the red.

Asian trading closed with the Hang Seng +3.24%, Nikkei +1.49%, Sensex +0.11%, Taiwan +1.86% and Shanghai +2.26%.

A quick check across the pond finds the CAC -0.49%, DAX -0.34%, FTSE -0.64%, ATX -1.55%, Swiss Mkt. -0.08% and Stockholm -0.01%.

A Look At Commodities

Commodities are strong. Crude oil is higher +0.19 to 101.08. Gold is up +13.90 to 960.00. Silver is higher by +0.525 to 19.245 and Copper is up +5.50 to 383.60.

The dollar index is off –0.326 to 74.434.

On the Radar


MBA Mortgage Applications: -19.2% vs. -22.6% prior
Durable Goods: -5.3% vs. -4.0% cons
Durables ex Trans: -1.6% vs. -1.4% cons

10:00 New Home Sales: 600 k cons
10:00 Bernanke Report on Economy & Fed Policy
10:00 New Home Sales (m/m): -0.7% cons

Click here for the full trading radar.

Do the Humpty Dance! Good luck and have an awesome day!

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No positions in stocks mentioned.

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