Wang’s Happy Trading

Submitted by Optiondragon

Dave Matthews Band - Ants Marching (Central Park)

From Briefing.com

PGNX is gapping down to due a failed drug study. Preliminary results from the phase 3 clinical trial conducted by Wyeth showed that treatment did not achieve the primary end point of the study: a reduction in time to recovery of gastrointestinal function as compared to placebo. The study also did not show that secondary measures of surgical recovery, including time to discharge eligibility, were superior to placebo. The trial was expected and a strangle would have netted a 10 bagger.

HUM and healthcare is taking another beating this morning as HUM slashes its earnings outlook. Down $10 in premarket. HUM lowers Q1 EPS view to 44c-46c from 80c-85c. Consensus is for EPS of 84c.
HUM lowers FY08 EPS view to $4.00-$4.25 from $5.35-$5.55. Consensus is for EPS of $5.50.
This warning again reaffirms that this is a fundamental preoblem with the whole sector due to the slowing economy. Where there was smoke there was fire.

UA- upgraded by BofA. Banc of America would continue to buy UA shares given the potential for better than expected top and bottom line results heading into 2009.

VIP gapping down on disappointing earnings. VIP reports Q4 EPS 36c vs. consensus of 39c.
Reports Q4 revenue $2.01B vs. consensus of $2B.

Coal- Expect coal spot pricing to decline, see downside to coal stocks@GSCO
Goldman said coal production is coming online faster than the bulls believe given the high spot price. The firm expects spot pricing to come down and valuations to contract.
ANR, ACI, BTU, PCX, FDG, CNX are ome coal names to watch. KOL and XME are ETF’s to watch and pair proxy trade with.

CAT rose guidance for 2010 and GS came out with a bullish note this morning. Target to $66 from $60 on increased sales guidance. Goldman raised its price target citing the company’s revised sales target of $60B from a midpoint previously of $52.5B. Shares are Neutral rated.

ISRG- Bear out with positive comments. da Vinci adoption in GYN steadily increasing.
Bear attended the Society of Gynecologic Oncologists meeting and said they were encouraged by the growing popularity of the da Vinci platform among GYN oncologists. The Society of Gynecologic Oncologists conference reaffirmed Deutsche Bank’s positive outlook on the robotic GYN market.

JCG- reports Q4 EPS 39c vs. consensus of 39c. JCG is gapping up.
Reported EPS includes a 2c severance charge. JCG reports Q4 revenue $399.9M vs. consensus of $400.85M and Q4 SSS flat. The Company’s long-term financial targets include comparable store sales growth in the mid single digit range, Direct sales growth in the high single digits, net square footage expansion in the 7% to 9% range, and diluted EPS growth in excess of 20%. JCG expects 2008 EPS $1.85-$1.87 vs. consensus of $1.83.

RMBS has a patent ruling sometime this month and it could move the shares big. It also has some really high option volume coming through. One to keep an eye on.

CME Group Fed Watch showed that 38% of traders expected a rate cut of (-50bps) at the FOMC meeting next week versus 62% of traders that expected a (-75bps) cut. That leaves three scenarios that would surprise the market: a cut of (-25bps), no rate cut at all, or a cut larger than (-75bps). Given the surprise of the TSLF program the Fed launched this week, it is not clear if additional cuts will materialize as expected. That has not filtered down yet to traders who clearly expect to see a major cut next week. That will be the issue for the bond market as we roll into next week. If no cut materializes it might actually allow funds to flow into equities after the initial shock wears off.

JASO gapping up on good earnings. JASO reports Q4 EPS 9c vs. consensus of 9c.
Reports Q4 revenue $144M vs. consensus of $117.78M. This should move other solars esp. chinese solars, SOLF, STP, SPWR, LDK, FSLR, WFR, YGE

YouTube set to make “big announcement”-TechCrunch
What will YouTube’s (GOOG) “big announcement” be? Sources said the announcement is unlikely to deal with live-streaming. Other rumors include high-definition video, a partnership with Hulu, a new Web site design, or another way to get on big-screen TVs or mobile phones. Another possibility may be better video-editing tools, as was leaked last month, or “tentpole” content, personal video recommendations or better advertiser analytics.

BIDU- Believe traffic picked up in late February.
Susquehanna believe BIDU’s traffic picked up in late February due to consumer usage returning to normal as well as the sex-photo scandal search. The firm said the positive pricing trend bodes well for a busy March. Shares are rated positive.

What a big day yesterday, let’s see if the market has follow through or consolidates yesterday’s gains at this higher level and not give them back. This game is a game of confidence, confidence in the Fed, confidence in the structured finance markets, confidence in the stock market. Did the market recieve what it needed and come back from the dead? The market was 3/4 dead and recieved a shot in the arm. Is it enough?
Still keep an eye on the previous leaders as the markets look for leadership.
Stay nimble and look for great setups. Trade your plan not your emotions, adhere to stop losses and your discipline. Stay positive and reach the zone. Great trading as the force works strongly in you.