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Two Ways To Play: It's a Sony... Yikes!

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Strengthen your portfolio in good times and bad.

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Sony Shares Tumble

Bloomberg reports shares of Sony Corp (SNE) tumbled to a five-year low in European trading. The world's second largest maker of consumer electronics said fiscal 1Q profits fell almost 50% annually to $327 million below analyst expectations. Revenues climbed 0.1% to $18.67 bln which was also below forecasts.

Further, Sony issued downside guidance for FY2009 saying it had a cautious outlook with declining demand for Bravia televisions and Cybershot cameras due to slowing global growth.

From the Bull Pen: We've mentioned Nokia (NOK) as a better upside play. With resistance at $30, bulls can play the upside with sell-stops below the 50 DMA ($26.40).

From the Bear Cave: Previous support is now resistance. Sony Bears can play the downside using the trades above the $40 mark as areas to set buy-stops.


India's Inflation Problem

Bloomberg reports for the third time in just two months, India's central bank increased its benchmark interest rate, this time by half a percentage point as the country struggles in its fight against inflation. The Reserve Bank of India raised its repurchase rate to 9% from 8.5% surprising investors as only one in 22 economists in a Bloomberg survey expected today's move. Many had predicted just a quarter-percentage gain. The central bank also raised the cash reserve ratio to 9% from 8.75%.

From the Bull Pen: Is ArcelorMittal (MT) the better global play? Sell-stops can be set below $79, or $75 for those with a higher risk profile.

From the Bear Cave: Bears might consider the India fund (IFN); a rally back towards $41 could have them initiating a downside position.


For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.


Quick Check Around the World

Asian trading closed in the red with the Hang Seng -1.89%, Nikkei -1.46%, Sensex -3.89%, Taiwan -3.03% and Shanghai -1.82%.

A quick check across the pond finds the CAC -0.86%, DAX -0.38%, FTSE +0.54%

As of 8:40 AM EST, S&P futures are up +5 points to 1240, and Nasdaq futures are up +6 points to 1820.


A Look At Commodities

Commodities are lower. Crude oil is lower -0.53 to 124.25. Gold is down -3.50 to 924.20. Silver is higher +0.092 to 17.417, and copper is off -1.45 to 369.50.

The dollar index is higher +0.213 to 72.857.


On the Radar

Economics

9:00 S&P/CaseShiller Home Price Index
9:00 S&P/CaseShiller Composite-20 YoY
10:00 Consumer Confidence
17:00 ABC Consumer Confidence

Click here to see the full trading radar.

Turnaround Tuesday? Good luck today!

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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