Two Ways To Play: India, China Fuel Crude's Fire
Strengthen your portfolio in good times and bad.
According to Bloomberg, global demand for oil continues to be strong because of fuel subsidies and high economic growth in India and China. In a report dated late July, Lehman Brothers said India and China continue to consume more oil, driven by fuel substitution and power shortages.
Further, Executive Director of the International Energy Agency Nobuo Tanaka said additions in oil capacity don't match the rising demand and that the "market is still very tight." See related article, Professor Andrew Jeffery's Oil Companies, Bureaucrats Caught With Pants Down.
From the Bull Pen: Oil at 100 may be a good risk/reward opportunity. Bulls can play using the oil ETF (USO); sell stops can be set below $80.
From the Bear Cave: Bears might see a downside play in Darden Restaurants (DRI) if oil begins to recover. One can consider initiating a position if and when the stock recovers to $32.
Sotheby's, Victim of Global Economy
Bloomberg reports Sotheby's (BID) dropped the most in four months because of concerns that a slowing global economy would leave its customers unable to purchase art and real estate. Shares of the world's largest publicly traded auction house plunged almost 9% while the broader markets gained.
Consumers continue to pull back in spending as they face higher prices for food and energy. A Sotheby's spokesperson refused to comment on the company's share price. As volatility increases, watch Toddo on TV for more tips for a tough tape.
From the Bull Pen: Boring continues to be the theme. Wal-Mart (WMT) on a pullback to $60 may provide bulls with an upside opportunity.
From the Bear Cave: Bears can consider downside entry in Coach (COH) at its 200 DMA ($31). Buy stops can be set above that mark.
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 -3.06%, Nikkei -1.98%, Sensex -2.31%, Taiwan -3.19% and Shanghai -3.34%.
Over in Europe, we see the CAC -0.86%, DAX -1.24%, FTSE -1.05%
As of 8:30 AM EST, S&P futures are down 17 points to 1215, and Nasdaq Futures are off 24 points to 1713.
A Look At Commodities
Commodities are mostly lower. Crude oil, Gold, silver, and copper
The dollar index is
On the Radar
8:30 PPI (m/m): -0.4% cons.
8:30 Core PPI (m/m): 0.2% cons.
8:30 PPI (y/y): 10.2% cons.
8:30 Core PPI (y/y): 3.8% cons.
8:30 Advance Retail Sales: 0.1% cons.
8:30 Retail Sales less autos: -0.1% cons.
10:00 U. of Michigan Confidence: 63.5 cons.
10:00 Business Inventories: 0.5% cons.
Happy Friday, Minyans! Good luck and have a great weekend!
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