Two Ways To Play: Cloudy Forecast for Sun Stock
Strengthen your portfolio in good times and bad.
Today at 10:00 AM EST, the Institute of Supply Management will release its factory index. According to Bloomberg, economists expect the index to fall this month to 48.5 from 48.6 in April. The drop signals expectations of a decline in manufacturing for a fourth consecutive month. A number below 50 signals a contraction.
Also at 10:00 AM, the Commerce Department will report figures for construction spending. That number is also expected to decline 0.6%, the sixth drop in seven months. For more context on our economy, see Professor Kevin Depew's most recent Five Things You Need To Know.
From the Bull Pen: Bulls continue to like AutoZone (AZO). Sell-stops can be set near $121 (50 DMA).
From the Bear Cave: Lower numbers means continued contraction in the economy. Lower highs in the retail ETF (RTH) also adds to the bear case. Near-term buy-stops can be set above $98 on downside attempts.
First Solar Eye-Opener
Interesting insider trading activity is going on in the solar space. Bloomberg reports First Solar's (FSLR) second-largest shareholder, CEO Michael Ahearn, cut his holdings in half to a little over 3 million shares in May from 6 million at the company's IPO in November 2006. Some believe it may be a sign that shares of the world's largest solar company may soon fizzle. Adding to the negative speculation, the company recently announced that its cells made of toxic cadmium-telluride may be banned in Europe, where the company gets 90% of its revenue. For more, see Professor Charles Payne's A Ray of Sunshine.
From the Bull Pen: Bulls believe in the long-term growth prospects in FSLR and welcome pullbacks towards the $250-230 level.
From the Bear Cave: Those bearish in FSLR can set buy-stops near the $270-280 range depending on one's risk profile. JA Solar (JASO) may be another option; buy-stops above $22.
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 +1.22%, Nikkei +0.71%, Sensex -2.15%, Taiwan +1.22% and Shanghai +0.75%.
A quick check of Europe finds the CAC -1.42%, DAX -1.06%, FTSE -0.87%, ATX -0.28%.
As of 8:00 AM, S&P Futures are lower -6.70 to 1393 and Nasdaq futures are down -7.95 to 2028.
A Look At Commodities
Commodities are lower. Crude oil is down -1.68 to 125.66. Gold is down 0.80 to 890. Silver is down -0.09 to 16.775, and copper is off -6.30 to 356.50.
The dollar index is higher +0.108 to 72.988.
On the Radar
10:00 Construction Spending –0.6% cons
10:00 ISM Index 48.0 cons
Click here for this week's full trading radar.
Good luck today! Have a great week!
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.
Daily Recap Newsletter