Wang’s Happy Trading

Submitted By Optiondragon

Spoon- I Summon You

From Briefing.com

The Wall Street Journal writes that the $29 billion loan to Bear Streans is made up primarily of mortgage-back securities.

The Wall Street Journal writes that major auto companies including Ford (F) and GM (GM) had a huge sales slump in March.

The Wall Street Journal writes that Intel (INTC) is making progress providing chips for mobile devices.

The Wall Street Journal reports that an airline association downgraded it forecasts for industry profitability in 2008.

The New York Times writes that a bi-partisan bid to help mortgage holder is gaining momentum.

The New York Times writes that the Shanghai market has dropped 45% since October.

The FT writes that the market rally could be partially due to short-sellers retreating from the market.

Money raised by Lehman and UBS (UBS) may signal an end to the rout in the equities market

Asian Market recap- The Nikkei was up 4.2% to 13,189. The Hang Seng rose 3.6% to 23,595. China Life (LFC) rose 5.2% to 26.6. China Mobile (CHL) rose 4.2% to 122.6. China Petroleum (SNP) rose 5.5% to 7.26. The Shanghai Composite rose .6% to 3,448.

Senate sets urgent push for housing compromise. Reuters.
IMO this is big news and could light the market on fire led by a larger short covering in financials. We loved and traded FNM and FRE the past couple days. Do not overlook this news if you have short positions this behind the scenes news is IMO partly the reason we were up 400 points yesterday. Too many bears, too many people and hedge funds leaning short. I talked about the removal of the uptick rule last year and only now is it starting to gain airtime (no one really cared last year but I was all over it on the board). The removal of the uptick rule gives shorts an upperhand not doubt about it. The mechanics of the fluidity of money into issues have been changed due to this change. One of the people that helped institute the uptick rule was JFK’s father who was a big trader himself in his day and was given the power at the SEC to level the playing field after the Crash of 1929, partly caused by “Bear Raids”. They knew about these Bear Raids and many other tricks of the trade that hurt investors and this was one of them.
The ADP Employment Change showed that the economy added 8,000 jobs in the private sector in March; analysts had been looking for a loss of -45,000 jobs. This unexpected number caused the futures to jump. If they hold, it will cause the markets to open higher.

URBN target raised to $40 from $34@NEED
Needham raised their target after previewing Leifsdottir, URBN�s newest wholesale brand. They believe the company continues to perform well in a difficult environment and reiterate a Strong Buy rating.

Fed Chrmn Bernanke before Joint Economic Committee 9:30am on Economy 4/2.

Biotech: Prefer GILD and CELG over BIIB and DNA@LEHM
Lehman prefers GILD and CELG over BIIB and DNA due to recent IMS prescription data.

AAPL: iPhone stock outages likely due to a production shortfall@BERN
Bernstein believes iPhone stock shortages at US Apple Stores and US Apple online store is likely due to production shortfall and not due to the imminent launch of a 3G phone or price cut. The firm said the inventory shortfall could be due to a components shortage but said the impact to the March quarter will be limited. Shares are Market Perform rated.

MON reports Q2 EPS $1.79 vs. consensus of $1.72. Reports Q2 revenue $3.8B vs. consensus of $3.6B. MON sees FY08 EPS $3.15-$3.25 vs. consensus of $3.25.
Slight weakness in AG’s this morning off the MON earnings and soft guidance. Now all eyes on POT presentation this morning and MOS earnings on Friday morning. Let’s see how this gap down is traded through this week.

STP to supply 4MW of modules to Enerray.
The Suntech modules will be installed by Enerray in PV systems for the rooftops of large Italian industrial complexes.
TSL also announced a supple contract. We could see some action in the solars today so you might want to keep an eye on them. My favorites are FSLR, SPWR, STP, SOLF.

BBY sees 2009 revenue $43B-$44B vs. consensus of $43.02B
Sees 2009 SSS up 1-3%. The company expects the comparable store sales gain in the international segment to exceed the domestic segment’s comparable store sales gain for fiscal 2009.
BBY sees 2009 EPS $3.25-$3.40 vs. consensus of $3.31. BBY reports Q4 EPS $1.71 vs. consensus of $1.65
Reports Q4 revenue $13.42B vs. consensus of $13.19B. Reports Q4 SSS down 0.2%.
BBY gapping up nicely and this should give some strength to the retailers this morning. Look for tradeable strength in this issue as well as COST, WMT, URBN, SHLD, TGT, RTH. Pair your retail trade with the RTH as a proxy. My favorite is AMZN with an inverse H&S on the daily chart. Keep an eye on this one.

Global Fertilizer Conference in Toronto at 8:20am on 4/2 sponsor BMOC.

Natural gas producers invade Pennsylvania to chase new deposits-WSJ
Last fall Range Resources (RRC) said it drilled a well in Pennsylvania producing over 3M cubic feet of natural gas a day at an area called the Marcellus Shale. Now the largest land rush in North America is on, reports the Wall Street Journal. Since then Range Resources has found wells there producing even more gas, and will spend over $400M in Appalachia in 2008. Other companies on the scene there include EOG Resources (EOG), Chesapeake Energy Corp. (CHK) and Anadarko Petroleum Corp. (APC). “Even though these stocks have done well, to say the market has fully captured the potential is laughable,” says Subash Chandra at Jefferies & Co. To get in on the exploration, companies are signing deals with local companies with large acreage. “We’ve never seen this kind of money around here,” according to Terry Jacobs, president of the family-owned Penneco Oil Co.

RIMM: Expect in line Qtr and positive outlook@BEST
Bear expects RIMM to report an in line quarter with potential upside driven by new product launches and a positive outlook. Shares are Outperform rated.
RIMM earnings today so we will be active trading this on the board. Strangles and straddles are possible going into the event today.

RIO target raised to $48 from $45, reiterate Buy@DBAB
Deutsche Bank sees potential upside from iron ore contracts and their revised metals outlook.

CHL upgraded to Buy from Hold@DBAB
Deutsche Bank upgraded shares as they believe the company continues to outpace competitors through the expansion of mobile applications and improvements.

GS sees indications market is stabilizing@WCHV
After meeting with the company’s management, Wachovia reports that Goldman Sachs believes fear is still stronger than greed in the marketplace, but the company sees signs that the markets are stabilizing. Goldman Sachs’ business and geographic diversity have helped offset problems in mortgage and structured products, Wachovia believes, and Wachovia maintained their Outperform rating.

EBAY: Final Q1 listings suggest upside to quarter, maintain Buy@PIPR
Piper believes EBAY’s Q1 listings were up 2.4%, above their estimate of down 3%. They believe this could drive 2c-3c of EPS upside in the quarter and maintain a Buy rating.
Good news for Ebay and something to keep an eye on going into their numbers.

XTO re-initiated with a Outperform@MOKE
Morgan Keegan is positive on XTO’s projected 20% production growth, value building through acquisitions, and valuation.

Lehman sees possible abusive trading in its shares-FT
Lehman Brothers (LEH) yesterday said it had sent information to the SEC about possible abusive short-selling in its shares in recent days. Lehman CFO Erin Callan said the SEC was examining whether hedge funds collaborated to drive down the bank�s share price in the days following the near collapse of Bear Stearns (BSC). Such collaboration could constitute market manipulation, possibly triggering civil and criminal sanctions.

ITMN: Additional information on ITMN-191 removes an overhang@LAZA
Lazard thinks a near-term overhang has been removed and expects investors to be more constructive on the stock going forward.

AAPL: March browser data indicates continued share gains@PACS
Pacific Crest notes that Net Applications browser data for March shows Mac share rose to 7.48% from 7.46% and iPhone share rose to 0.15% from 0.14% in February. They view the data as positive for AAPL.

National City (NCC) is trading up +7.6% after a note in the WSJ suggested the company may be attempting to sell itself to Key Corp (KEY).

Fasy Money Positions- First Move- Macke likes MSFT, Adami likes FDX, Finerman likes TIPS, Najarian likes puts on XLF. Macke Owns (DIS), (YHOO), (MSFT), (INTC); Najarian Owns (AAPL), (CSCO), (MSFT), (YHOO), (ORCL); Najarian Owns (AA) Calls, (BSC) Calls, (CCU) Calls; Najarian Owns (LEH) Puts, (MER) Puts; Najarian Is Long (XLF) And (XLF) Puts: Finerman Owns (GS); Finerman’s Firm Owns (JCP), (MO), (MSFT), (VLO), (YHOO), (PM), (TIP):Finerman’s Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (GLD).

The market should breathe a bit today as it has after the past 400 point moves. The ADP report could levitate this market up here for at least the morning. I want to see a bull flag formation on the S&P which portends strength and possible further gains and the only way that can happen is if the S&P consolidates at this higher range in a tight range for a couple days. If we get that, there should be more short covering coming in which could lead to higher highs. If Congress passes the housing compromise then this market will gap up and levitate for the foreseeable future. Good Lucck and stay nimble. Don’t argue with the market and adhere to your stops. So goes the brokers, so goes the market. Let’s see if BBY numbers will now carry the RTH which will support the market while the XLF rests. Great trading today as always and your positive mood will be key.