Nice bounce in the markets yesterday with impressive moves from Oil and the retail sector. All three of the major indexes moved to new highs yesterday but we continue to trade in a tight range. It is often said that you never short a dull market and that appears to be the case now. The market continues to grind its way higher and now we are almost trough earnings season.
Retail sales from some of the bigger chain stores came in better than expected and that gave us a nice boost in the sector along with the discretionary income sector. We had more good news from the space after the close from JWN.
Yesterday I wrote about the price per barrel of oil and how if we stay in this 40 dollar range there will be some companies that will not survive or remain intact in their current form. I will give you two examples of companies that are on that path. TDW and ORIG have disclosed that they are looking at all options which could include filing for bankruptcy restructuring during their earnings releases. The extremely high debt loads and the low oil price has finally caught up with these companies. TDW has been in business since 1956 and is now on the verge of going bankrupt. I don't think these will be the only victims of low oil prices there is a massive amount of debt out there in the industry. If you are holding oil and oil related companies in your investment portfolio for the long haul. Make sure you check out their debt load and current cash flow to make sure they are able to weather the storm and pay their debt obligations. In case this low price for a barrel of oil lasts for an extended period ot time.
I will be doing this weeks market wrap after the close I am looking forward to seeing how we close out the week in the IBB and IWM which are holing up really well. The 300 tag for the IBB is a whisper away.
Today's Markets
In Asia, Japan +1.1% to 16919. Hong Kong +0.8% to 22766. China +1.6% to 3050. India+1.1% to 28152.
In Europe, at midday, London flat. Paris -0.1%. Frankfurt -0.2%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude flat at $43.49. Gold-0.5% to $1343.
Ten-year Treasury Yield
Today's Economic CalendarIn Europe, at midday, London flat. Paris -0.1%. Frankfurt -0.2%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude flat at $43.49. Gold-0.5% to $1343.
Ten-year Treasury Yield
8:30 Producer Price Index
8:30 Retail Sales
10:00 Business Inventories
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
8:30 Retail Sales
10:00 Business Inventories
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
STOCKS ON MY RADAR PREMARKET
*PR = Press Release
DK rumors Carl Icahns CVI is going to make a play for the company Mr Icahn sits on the board of DK gappin big don't chase it but Book value on DK is 18 one would think there would have to be some kind of premium
JMBA bid insider buy 250 k @ 10.96 Daily looks interesting big short interest tiny floater flirting with an 11 roll
SGI earnings gapping likely to be some supply to absorb @ 8 if you look at the weekly chart > small float
URRE and UEC were active yesterday as uranium plays got some play watch for potential follow through but keep in mind these can be huge pop and floppers So have a tight plan, appropriate size and good risk reward >Don't chase
CYNA pr super tiny floater Decent amount of cash not sure what their debt is Could be worth watching
CYCC with a crazy price target upgrade super tiny floater gappin premarket may need to raise capital soon be careful
TRIL I like the daily see if ten holds as support another tiny floater plenty of cash needs a good pr
HPJ china name reported earnings and contract news tiny floater lots of debt flirting with a 2 roll do not chase Has a history of being a pop and flopper
EBIO gapping off earnings another tiny floater coming out of pennant formation on daily see if it gets some follow through
Stocks discussed in this weeks Ticker Tv
The Chatroom nightmare never ends> I actually jinxed it mid day by saying something positive and it immediately crashed! LOL So until I am certain that we have a very stable solution we are going to continue using Chatzy. We are actually going to revamp a few things on the site and relaunch once we have them completed.
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