Before The Bell: Holiday Gaming War and Holiday Biotech Shopping
Nintendo is eating Sony's lunch. Celgene shops around in the biotech sector.
Morning Perspective: The Gaming War
PCWorld reports Sony (SNE) is expecting strong momentum in sales of its Playstation 3 gaming console for this holiday season. The company said in a statement that sales for the month of October totaled 121,000 units, with sales already spiking 192% in the first weeks of November. The report, however, coincides with one of the Daily Telegraph that manufacturers in the U.K. are warning that the Nintendo's (NTDOY) gaming console, the Wii , is already sold out. Professor Krueger first mentioned this battle in October with Nintendo's Simple Secret.
From the Bull Pen: Those believing Nintendo will win the gaming war can look for a bounce off the 50-day moving average, with near-term sell-stops below the recent lows at $66.31.
From the Bear Cave: Those believing Sony will fall may play the downside with stops above $50.50, which represent a point above the trend-line from the May highs.
Holiday Biotech Shopping
Bloomberg reports biotech company Celgene (CELG), known for its drugs used to treat blood cancers, will acquire Pharmion Corp (PHRM) for $2.9 bln in cash and stock. Shareholders in Pharmion, a company known for its specialty in leukemia treatment, will receive $72 per share, representing a 46% premium from Friday's closing price. For more in the sector, read Professor Miller's Biotech Roundup.
From the Bull Pen: Celgene CEO Sol Barer was mentioned stating the acquisition of Pharmion was an excellent strategic fit allowing the company to expand its leadership role in hematology and oncology. Those who agree may place sell-stops below the 200-DMA ($61.18).
From the Bear Cave: Professor Miller mentioned a bearish play in the biotech sector in Genentech (DNA). Those agreeing can play the downside with buy-stops above the 50-DMA ($76.48). For those with a bit more risk tolerance, buy-stops above the 200-DMA ($78.18) may also be an option.
Click on Minyanville's Stocks To Watch more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -0.56%, Nikkei -0.74%, Sensex -0.33%, Taiwan -0.96% and Shanghai -0.87%.
A quick check across the pond finds the CAC -0.30%, DAX -0.78%, FTSE -0.82%, ATX -1.93%, Swiss Mkt. -0.72% and Stockholm -1.57%
A Look At Commodities
Crude oil is higher by +0.83 to 94.67. Gold is up +2.9 to 789.1. Silver is up +0.045 to 14.55. Copper is lower, down -5.70 to 314.20.
As of 8:30 AM EST, S&P futures are down by -7.70 points and Nasdaq futures are lower by -10.25 points.
On the Radar
The radar is light today with no economic events scheduled.
Click here for Minyanville's full Trading Radar.
Happy Monday Minyans!
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