Two Ways to Play: UBS on Track for 2010
Strengthen your portfolio in good times and bad.
UBS (UBS) was profiled in the Wall Street Journal this morning. Managers at the Swiss bank said they were confident of achieving its medium-term profit target, especially after a solid start to 2010.
Chairman Kaspar Villiger and Chief Executive Officer Oswald Grubel wrote in a letter to shareholders that they're seeing "the full effects" of the progress made after making improvements in operating efficiency, reducing risk, and rebuilding the business. Both managers warned of more client outflows in the short-term, but remained confident of reaching the 15 billion franc profit target before tax in the medium-term.
In 2006, the company reported a profit before tax of 14.12 billion francs.
From the Bull Pen: The financial sector has been a top performer for the last month, and that positive momentum could continue in the medium-term. So in that sense, UBS could be a buy-on-the-dip candidate, but also look to NYSE Euronext (NYX) for a short-term trade. A sell stop can be set below $28.
From the Bear Cave: In the short-term, the markets might not have enough momentum to sustain the breakout above S&P 500 (SPX) 1150. So quick scalpers might be able to win a few trades using the SPY and buy stops above 116. But be careful of putting on too big of a position, especially with increased volatility likely to come with the FOMC statement on Wednesday.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check Around the World
Asian trading closed with the Nikkei 0.01%, India -0.01%, Hang Seng -0.62%, Shanghai -1.21%, and Taiwan -1.46%.
Across the pond, we see the FTSE -0.22%, DAX -0.13%, CAC -0.35%
As of 8:11 AM EST, S&P Futures are trading -3.100 to 1143.500 Nasdaq futures are -4.000 to 1920.25.
A Look at Commodities
Over in commodities, crude oil is -0.57 to 80.66 while gold is +4.600 to 1106.30 this morning. Silver is -0.018 to 17.030 and copper -0.0560 to 3.3240.
The dollar Index is +0.2150 to 80.2900.
On the Radar
08:30 Empire Manufacturing Survey 23.45 cons.
09:00 Net Long Term TIC Flows
09:15 Capacity Utilization 72.3% cons.
09:15 Industrial Production 0.0% cons.
Click here for the full trading radar.
Welcome back! Good luck!
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