Two Ways To Play: It's a Sony... Yikes!
Strengthen your portfolio in good times and bad.
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
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!
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