Before the Bell: Paulson and the Dollar Bulls, Google Service?
Paulson is defending the dollar. Meanwhile, Google may be looking to be a wireless provider. Futures are up on this expiration Friday.
Bloomberg reports U.S. Treasury Secretary Hank Paulson is predicting a rebound in the dollar from a record low which would reflect "long-term strength" in the U.S. economy. Paulson defended the dollar earlier this month, stating "the U.S. has a competitive, strong economy" which has been a reason the dollar has been the world's reserve currency since World War II. For another aspect, read Toddo's Minyan Mailbag: Are We Overvalued?
From the Bull Pen: Those believing in Paulson's comments can play the PowerShares Dollar Bullish Fund (UUP). Stops may be placed below the 52-wk low, $23.40. Another option may be in Nike (NKE) due to its mix of international exposure. Sell-stops below $60.
From the Bear Cave: Dollar bears can play the PowerShares Dollar Bearish Fund (UDN), near-term sell-stops below recent support at $27.60. The Japanese Yen ETF (FXY) may also be an option as it continues to advance against the dollar. Stops may be placed below $88.40, which would break the trend-line from the October low.
Google Phone? Actually, Google Service
The WSJ is reporting Google (GOOG) may be making plans of running its own mobile network. The company is reported to be working on plans to finance a bid for a chunk of the airwaves used for mobile and Internet services, a plan that could cost $4.6 bln or more. Google is already running a test version of an advanced wireless network at its headquarters in California. For a related matter, read Professor Sean Udall's Revisiting 21 Bullish Predictions For Tech.
From the Bull Pen: Those bullish on GOOG may place sell-stops below the 50-DMA ($616). Also, as Professor Udall mentioned, with the bandwidth world becoming more constrained, Verizon (VZ) and AT&T (T) could experience higher rates for their wireline services. Sell-stops may be placed below the 200-DMA ($41.30) for VZ, and below the recent low for T ($38.60).
From the Bear Cave: Toddo has mentioned Google as a high beta stock vulnerable to overall market sentiment. Those bearish may attempt the downside should Google rally to the $700 level. Buy-stops may be placed above.
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -3.95%, Nikkei -1.57%, Sensex -0.44%, Taiwan -1.58% and Shanghai -0.91%.
A quick glance towards Europe finds the CAC -0.69%, DAX -0.71%, FTSE -0.63%, ATX -0.69%, Swiss Mkt. -1.36% and Stockholm -1.03%.
A Look At Commodities
Crude oil is trading higher +0.65 to 92.73 and gold is also up +2.3 to 789.6 this morning. Silver is up +0.17 to 14.66, and copper is lower -0.5 to 311.85.
As of 8:30 AM EST, S&P futures are up by +6.60 points and Nasdaq futures are higher by +15.75 points.
On the Radar
9:00 Net Foreign Purchases: -$69.3 bln prev.
9:15 Industrial Production: 0.1% cons
9:15 Capacity Utilization: 82.1% cons
Click here for Minyanville's full Trading Radar.
TGI Friday, Minyans! Good luck today!
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