Two Ways To Play: Google Searching For YouTube Ads
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According to the Wall Street Journal, Google (GOOG) is having a harder-than expected time generating advertising revenue from YouTube. Even though users can view clips on the site more than one billion times on most days, the site still hasn't been very popular with big corporate advertisers. Some believe copyright litigation is to blame while other think corporations are still "testing the waters" on YouTube.
For the full year, YouTube is expected to generate just $200 million, far short of expectations. Todd mentioned Google in a recent Random Thoughts.
From the Bull Pen: Bulls looking for a short-term trade might look elsewhere like Baidu (BIDU). The stock may be reversing a short-term downtrend; sell-stops can be set below $320.
From the Bear Cave: Should Google begin a downtrend; its next major target would be the $450 support level; bears can set buy-stops on trades above $576 (200 DMA).
Oil Rebounds on Iran Tensions
Bloomberg reports crude oil rebounded from its largest decline in three months after Iran test-fired a long-range missile in the Strait of Hormuz. Iran, which is the second-largest producer in OPEC said it may block the shipping lane and strike Israel as well as the U.S. Navy in the Persian Gulf if its nuclear facilities are attacked. Brent crude climbed 1.8% in at 11:15 AM in London reversing part of its 3.8% drop the pervious day. Nearly 40% of the world's traded oil supply passes through the Strait of Hormuz. Professor Jeff Macke mentioned playing his oil play yesterday in Agriculture Stocks Wither Away.
From the Bull Pen: Oil bulls are content to play the oil ETF (USO); sell-stops can be set below $100.
From the Bear Cave: Bears might choose to play the downside in oil-related plays like Baker Hughes (BHI) should the stock approach $85; buy-stops can be set above that level.
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 +2.76%, Nikkei +0.15%, Sensex +4.60%, Taiwan -0.05% and Shanghai +3.75%.
A quick check of Europe finds the CAC +1.44%, DAX +1.32%, FTSE +1.42%
As of 8:30 AM EST, S&P futures are higher +4.30 points to 1277, and Nasdaq futures are up +7.5 points to 1876.
A Look At Commodities
Commodities are mixed. Crude oil is higher +1.45 to 137.56. Gold is lower -3.90 to 919.40. Silver is down -0.030 to 17.850, and copper is up +0.75 to 372.00.
The dollar index is lower -0.151 to 72.860.
On the Radar
MBA mortgage applications: 7.5% vs. 3.6% prior.
Click here to see the full trading radar.
Get over the hump! Good luck!
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