The Market Mon

Wow, what a difference 3 days makes!   Stocks started off 2010 with a nice run, and all the broad market ETF's made marginal new highs this past Tuesday.  

Then BAM - the one-two punch.  First punch was the Obama talking about taxing the banks to recover all the TARP money - the TARP money they already paid back!  Second punch was talk about financial regulation where banks are not allowed to trade for their own accounts.  This double whammy whacked financials and took down the good as well as the bad.  Goldman was down 6% for the week (despite record earnings), JP-Morgan was down 10% and lowly Citigroup was down 17% on some disappointing earnings.  For the same period, SPY was down about 4%.

Let's go through the positions.

AAPL - Made a marginal new high closing this past Tuesday at 215.04.  Then the market came in and whacked it down and it closed for the week at 197.75.   On the technical side the stock closed just barely below the lower range band at 197.94.  Volume swelled on this selloff.

The upcoming week is going to be a big one for AAPL.  

First earnings are out Monday after the close and average estimates are for 2.06 per share.  Second is the big Tablet announcement scheduled for Wednesday.  Analysts are expecting something between a tablet with a touch-screen keyboard, and a Mac in tablet form.  On the downside, analysts expect the device to canniblize sales of both the iPhone on the lower end and the Mac on the upper end.  Net result is a wash for earnings but trouble for e-reader makers Sony and Amazon.   We'll be watching but are going to try and hang in there for the long term.

ABVT - The stock is hanging tough and the company announced connectivity with data center companies Telehouse and Equinix (EQIX).   With my entry at $66.70, I clearly top-ticked this trade.  I'm sticking with this trade and I believe earnings will come through.  IBD says "Find support in latest pullback to 10-week line.

AUY - I top-ticked this entry on Yamana, but at this point i'm sticking with it for Gold exposure. It has a very similar pattern to GLD.

C - There's not much good to say about Citi, except maybe that they are turning a corner.  There seems to be more upside than downside, but its going to take some time.  Analysts are estimating profits of 7 cents a share in 2010 and 34 cents a share in 2011.  So from a EPS perspective, they appear to be turning a corner.  Q1 2010 results should tell us whether they are headed in a positive direction.

CML - Still up slightly on this position.  Compellent won the Infoworld Technology award for the 3rd straight year on its SAN storage technology. 

DIA, EEM, EFA, SPY, XLB - All the EFT's got battered this week.   I'm up on SPY, DIA and EEM and down on the others.  I'm an investor now, not a trader so i'm hanging in there.

HMSY - Now loaded up with HMSY on this recent rally which was sharply reversed on the news that Healthcare reform might not be going through after all.  Stock sliced through the lower range band on the daily, but still well above the weekly.  Looking to lighten up on a rally here.

NEOG - No news here, market dragging us down.

SXCI - Pelted by the apparent failure of Health care reform passing the congress.   The stock had a raft of analyst upgrades in the past 2 weeks.  Technically, the stock appears to be rolling over and i'm caught long 100 shares with an entry of $54.12.

USO - Should have taken profits recently at $41, oh well.  Back in the hole again on this position.

XLB - Select sector materials, now up only slightly on this position.

YUM - On a sad note, Glen Bell Jr, founder of Taco Bell died this past week.  He was 86 years old.   "The entire Taco Bell family of franchisees and employees are deeply saddened by the loss of the founder of Taco Bell. Glen Bell was a visionary and innovator in the restaurant industry, as well as a dedicated family man," said Greg Creed, president and chief concept officer of Taco Bell. "His innovative business acumen started out of humble beginnings and created one of the nation's largest restaurant chains in Taco Bell. Mr. Bell introduced an entire nation to the taco and Mexican cuisine."

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