Buzz on the Street: Research in Motion Breaks Above Resistance
Some of this week's most insightful and timely vibes.
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Monday, March 8, 2010
Dr. Janice Dorn
Going long Research In Motion (RIMM) for a trade:
Target Area: $83.00
Click here for Dr Dorn's previous Buzz on RIMM.
Position in RIMM
MED Swing Trade
Dr. Janice Dorn
Medifast (MED): Long
Click to enlarge
Position in MED
Tuesday, March 9, 2010
Minyan Mailbag: China committed to Treasuries?
Did you see this guy from SAFE in China last night saying that China remains committed to US debt and is wary of gold? What are your thoughts?
As Sun Tzu said, "All warfare is based on deception." What do you expect him to say? Are they supposed to say: We're selling Treasuries every day and buying gold on the open market, so please rush out and sell your Treasuries and run up the price of gold on us?
Remember, China told nobody about the fact that it was even adding its gold reserves at all until last summer when it "broke the news" out of the blue that it was buying domestic gold production and had already substantially increased its reserves. China also gave no "heads up" when it sold enough Treasuries to fall back to the #2 holder behind Japan back in Q4 of 2009 too. In other words, what China does and what she says are typically two very different things.
When I see statements like this out of officials in China, I tend to actually view them from a contrarian perspective (i.e. – they're probably now buying more than just domestic production), especially considering the "increased volume" of these dismissive statements about gold that have been coming out of China since gold traded up through $1000 a few months ago.
Position in gold, gold stocks
- Bank of America (BAC), Research in Motion (RIMM) and Citigroup (C) taking the lead today.
- Advancers leading decliners 6-4.
- QQQQ taking out 18 month highs
- The bounce in semis…about darn time.
- All things Apple (AAPL).
- Volume not coming in to today's move.
- The ability to stay on the sidelines.
- Dollar green by a hair.
- Qman getting trapped by shippers.
What started out as a flat day as turned into another rip roaring bull session for many sectors. BAC and C have found their mojo, along with tech leaders AAPL and Baidu (BIDU). The only blight on this session for me is the nick that Diana Shipping (DSX) decided to give me as I played stubborn and didn't cut all of my position early on. Another lesson learned that when a momentum name does not get up and go immediately, get out. They're not big movers, or at least they weren't, but I've added both BAC and General Electric (GE) today, with day low stops. I guess bid is in.
Positions in GE, BAC
Wednesday, March 10, 2010
Treasury Outlook for Mar 10, 2010
The auction of 21 bln reopened 10 year notes will be the focus today. Yesterday's record 40 bln in 3 year notes went off rather well. Traders will be reluctant to buy early today for fear of players selling to set up for the auction.The last re-opened Ten Year issue went off with a 3.0 bid-to-cover. Expect a decent result today. The concession, while in play has been modest thus far, often times foreshadowing strong demand for the issuance at hand. As far as the direct/indirect numbers, be careful! These numbers can be very misleading to retail. Traders often put their bids through other houses( often called " give ups") to avoid showing their positions. Since auctions seem to be the only game in town for now, game playing itself is at a very high level. It's best to trade the ranges if you have the courage. If not patience is required and stops are loaded up as support/resistance lines are very well-defined.
Support in Ten Year Futures at 116-23, 116-09, 116-01. Resistance at 117-16, 117-23, 117-28. The market has not shown much concern for long term paper to date, If nervousness with these issues was real, we would have seen more of a concession by now. Expect decent results today.
Cup & Handle
New Oriental Education (EDU) shows a Cup & Handle pattern (bullish) on its dailies.
The handle may be pulling back the rubber band for an attack of the swing highs at 80.
See daily here.
Click to enlarge
Position in EDU
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