Wang’s Happy Trading

Submitted By Optiondragon

Dave Matthews Band - Don’t Drink the Water

Energy stocks are getting downgraded this morning.
EOG, UPL, CHK, KWK, SWN
Solar stocks are getting downgraded also.
YGE, JASO, SOLF,TSL
Some gold companies being downgraded.
ABX, NG

Watch for weakness in these areas as they have run quite a bit leading to some profit taking and technical shorting.
GOOG is gapping down further after weakness yesterday. AmTech noting: it is surprised that concerns of slowing eCommerce activity have not taken down shares of AMZN and sees a valuation disconnect between AMZN and GOOG. They suggest that investors consider a long GOOG, short AMZN pairs trade to take advantage of this disconnect. Shares of GOOG remain Buy rated and shares of AMZN remain Sell rated.
MOO components are weak and CF, MOS, POT are gapping down on profit taking and technicals.
Another upgrade for DECK by Lazard. Tomorrow night is earnings.
ADSK is gapping down hard after earnings last night and missed on the bottom and issued soft guidance.
ADSK reports Q2 EPS 52c vs. consensus of 54c.
ADSK reports Q2 revenue $599M vs. consensus of $581.45M. The company sees Q1 revenue $575M-$585M vs. consensus of $582.66M and EPS 46c-48c vs. consensus of 52c. ADSK maintains its FY09 guidance of revenue $2.425B-$2.475B vs. consensus of $2.46B and EPS $2.15-$2.25 vs. consensus of $2.24.
Durable goods came out this morning and were softer than expecte even after being revised down. The Durable Goods Orders report showed a decline of -5.3% vs. an expected decline of -4.0%. Removing transportation items, the report showed a decline of -1.6% vs. an expected decline of -1.4%. Following the release of the information, equity futures immediately dropped. Investors will now look to the release of the New Homes Sales report, and Fed Chairman Bernanke’s testimony before Congress, both of which are expected at 10:00 am ET.
The dollar is at new lows and the Euro is at new highs.
INTC is trading down due to comments by JPM on weaker channel checks.
NFLX is bucking the trend gapping up after raising guidance well above consensus for the year
to $1.18-$1.30 vs $1.17.
LEH upgraded some of the homebuilders like DHI.
DBA is gapping down this morning.
FNM coming out with alot of negative comments this morning about the mortgage market with these points:
*mortgage/housing market conditions worsened progressively
* continued earnings decline would effect regulatory capital position
*says may face further write-downs and losses
*expects increased delinquencies and credit losses in 2008
*says expects these trends to continue
*experiencing high serious delinquency rates at single-family mortgage

Bernake is speaking at 10amET this morning so the market may flatline here all the way through it until his speech is completely over. The market will react if he says something unexpected. Watch for good setups for later today. There will be select names to short this morning on this weakness. Keep light on your feet and don’t force it today unless you see a great setup because volatility could be restrained during the speech.

Good Luck and Keep Positive.