Search This Blog

Friday, June 22, 2012

trades... IBM, AAPL, SU

At least Europe didn't make the markets go down today. China's Flash PMI was pretty crappy. Curious to how the official manufacturing PMI reads. Doesn't take a genius to figure out what will happen if the official PMI comes in below expectation or even worse, below 50.

In the mean time, there maybe some interesting opportunities that develop.

IBM - Saw a pretty sizable drop today. Obviously the overall market mood did not help, but the reaction to RHT's earnings probably added negativity.

If there is no follow through with the negative market sentiment, then now looks like an interesting level. But if there is follow through, the 186 level looks interesting, and what I am waiting for.

AAPL -  Whats there not to like fundamentally? Looking for the 560 level. Pending market negativity, AAPL may retest 530, but it will have to break the 560 level first. At the moment, I do not know if it will.

SU - Looking to for an anticipated oversold bounce between 25-26.

Oil is not looking pretty, but I think we might see an interesting set up take place. The first half of the year we saw oil related names trade far below the price of oil. Now that oil has come down, with 20/20 hindsight investors can say equities were pricing in the decline in oil.  Well, oil has declined to where equities were projecting. I am thinking the opposite activity develops toward the 2nd half of the year. While I am waiting for this scenario to pan out, I'm just looking for the oversold bounce trade

1 comment:

  1. I like your idea about the opposite activity developing toward the 2nd half of the year for the oil related names. It would be very interesting if this scenario does pan out. I'm going to keep an eye on CVX & SLB. I really like the move CVX had on Friday.