- SPY vs. RSP - a market cap vs. equal weight approach. RSP is new to me so it warrants further inspection.
- Copper has broken out at 2.14/lb. And while PCU is "overbought" by some indicators, it has established a new uptrend as it has broken out above it's 200dma. JJC is an etf that tracks copper. It's up 49% year to date. Sponsorship is picking up in this one as the underlying commodity makes an effort to establish an uptrend.
- Goldman's pair trade in steel : Long AKS / Short X. 12$ target on AKS
- SINA rumored to have MSFT looking at them.
- MWW - high volume move on Monday. Could this be signaling a turn in employment....not withstanding the Census jobs that will be created this year.
- Long New Zealand, Australian, and Canadian currencies. Short Yen. This is a Gartman play. Only have found BNZ for New Zealand, but FXA and FXC are the best for Australia and Canada. FXY can be shorted as it comes back up into some resistance. YCS is the double short Yen.
- MGM got reprieve on a debt waiver of 70m for a construction payment on City Center until Friday. Bank doesn't want let them tap a credit line until 800m of equity is contributed. Dubai World is the partner which is suing MGM for mismanagement of the project. ** This is just one of many examples of creditors letting defaults run long in the tooth hoping for credit markets to improve.
- Nancy Pelosi interview with Jon Stewart was a farce. Softball questions from Stewart, and giggley Obama name dropping coupled with a "nothing is my fault" it's the other guy attitude. Typical politician. And making a joke about the ear mark process.
- GE has a 10+% stake or $70m in A123 Systems the lithium-ion battery maker. This will be a high fly er when they finally ipo themselves. Makes me wonder if speculative name CBAK is worth a stab at these levels. It's consolidating on a daily and looking to break out on a weekly.
- If batteries are going to displace gasoline as a power source then XLU may offer a good play on this theme. If you wanted to juice it up you could use UPW the double beta. If you really wanted to maximize the trade you could buy UPW and sell short UGA the gasoline etf. XOM said the other day that gasoline demand had peaked and they saw it going lower into 2030.
- Further exploration of that theme would point us to AEP as they support the smart grid infrastructure.
- AGA vs. DAG. I think this one is starting to tighten up and flip to a positive bias for the double long DAG for agriculture. And is Farmer Mac (AGM) safe? If so it could be a good buy down here, but if farmers can't finance fertilizer then their crops could be in jeopardy, thus compromising them paying their mortgages.
- CGA is a small cap china agriculture play....within the "green" fertilizer space. This is new to my notepad along with meat processor HOGS. Both Chinese so the accounting is communist at best!
Trade what you see and not what you hope to see.
Posts
