Before The Bell: Verizon Opens Gates, Gold Tumbles
Verizon will allow consumers with other phones to use its network. Gold tumbles second day in a row. Futures are up.
The WSJ reports Verizon (VZ) plans to open up its cell network to consumers with mobile devices bought elsewhere. The plan which should take effect by next summer allows consumers to use Verizon's network so long as the device meets the carrier's minimum requirement. The move was praised by Google (GOOG) CEO Eric Schmidt as he called it "a great step forward." Professor Sean Udall first mentioned Verizon in Global Growth Good For Cisco.
From the Bull Pen: Those in agreement with GOOG's Mr. Schmidt may play VZ with near-term sell stops below $40.50. Tertiary plays include Broadcom (BRCM), stops below the recent low at $26; Cisco, (CSCO) stops below $27; and Google (GOOG), stops below $640.
From the Bear Cave: Professor Quint Tatro has been bearish on AT&T (T). Those in agreement could see an entry point at $38 should the stock have a short-term rally. Buy-stops may be set above
Bloomberg reports gold prices tumbled for a second day as lower energy costs induced profit-taking. Spot gold was down 15 points to 806.00 per ounce this morning with crude oil also falling 0.14 to 94.28. Further compounding the selling pressure was expiry volatility which led to the selling as traders rolled over contracts in the futures market. Read Professor Kevin Depew's Special Update: Mr. T Gold Indicator Forms Rare Double Sell Signal.
From the Bull Pen: Those who believe the selling in gold is just a short-term correction may play the upside with the Gold ETF (GLD). Bulls may see an entry point should the ETF correct to $77; sell-stops may be set below.
From the Bear Cave: For those believing a correction in gold may be a bit more extended, Newmont Mining (NEM) may be a reasonable downside play. Buy-stops can be set above $52.50, recent resistance.
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
The Minx arrives at another Hump Day to find foreign markets all mixed up.
Asian trading closed mostly lower with the Hang Seng +0.59%, Nikkei -0.45%, Sensex -0.99%, Taiwan -1.19% and Shanghai -1.19%.
A quick check towards Europe finds the CAC +0.73%, DAX +0.95%, FTSE +0.84%, ATX +1.13%, Swiss Mkt. +1.50% and Stockholm +0.76%.
A Look At Commodities
Crude oil has pushed into positive territory, up 0.06 to 94.48. Silver is lower by 0.14 to 14.54. Gold is down 13.50 to 807.70, and copper is down 1.70 to 297.55.
As of 8:45 AM EST, S&P futures are up by 17 points, and Nasdaq Futures are higher by 33 points.
On the Radar
8:30 Durable Orders: 0.0% cons
10:00 Existing Home Sales: 5.00 mln
10:30 Crude Inventories: 1071 k prev.
2:00 Fed's Beige Book
Click here for the full trading radar.
Happy Wednesday! Good luck today!
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