Wang’s Happy Trading

Submitted By Optiondragon

Weezer - Beverly Hills

From Briefing.com

Media Digest 4/18/2008 Reuters, WSJ, NYTImes, FT, Bloomberg from 24/7 Wallst.
According to Reuters, RBS (RBS) plans a rights offering next week to raise capital.

Reuters reports that Google (GOOG) beat Wall St. expectation.

Reuters reports that NY State will investigation the auction-rate securities debacle.

Reuters writes that AMD (AMD) posted is sixth straight loss.

Reuters reports that the FBI says subprime investigations may lead to hedge funds.

Rueters writes that the FCC is weighing actions about broadband providers who restrict access to some users.

The Wall Street Journal reports that natural gas prices in the US are up 93% since August.

The Wall Street Journal writes that GE (GE) is working with the FAA over questions about improperly certified parts for its jet engines.

The Wall Street Journal writes that Motorola (MOT) changed management within its troubled handset division.

The New York Times writes that employees at many companies are working fewer hours rather than being laid off.

The FT writes that the CEO of Citigroup (C) said he will cut expenses by 20%.

Asian Markets review
Markets in Asia were mixed.
The Nikkei rose .6% to 13,476. Casio rose 4.9% to 1423. Hitachi rose 2.3% to 667.
The Hang Seng fell .4% to 24,168. China Mobile (CHL) rose 2.5% to 132.2. China Petroleum (SNP) fell 2.5% to 7.15.
The Shanghai Composite fell 4% to 3,095.

USO: Pivot Points
The following are the pivot points for the United States Oil Fund (USO). Pivot High: $92.985, Pivot Low: $91.995. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

XLF: Pivot Points
The following are the pivot points for the Financial Select Sector (XLF). Pivot High: $26.375, Pivot Low: $25.565. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

DJX: Pivot Points
The following are the pivot points for the Dow Jones Industrials Index (DJX). Pivot High: 12685.180, Pivot Low: 12591.870. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

SPX: Pivot Points
The following are the pivot points for the S&P 500 (SPX). Pivot High: 1372.505, Pivot Low: 1361.515. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low. NOTE: On the open the Pivot High will be broken to the upside.

Pre-Market Movers: Ahead of the Bell from flyonthewall.com
The pre-market session is very active following major earnings releases last night after the close and this morning. With expiration today we will likely see extremely high volumes in the early going across the board with a large number of issues moving. The big surprises this morning are mostly to the upside with Citigroup (C) up +7% on very heavy volume. The company did report a loss but the size of the loss was lower than had been generally feared. Google (GOOG) is the big mover in percentage terms, trading up +17.5% after posting much better than expected earnings last night after the close. A Barron’s Online note from last night pointed out that ComScore (SCOR) which had been the source for concerns that paid clicks at GOOG had dropped dramatically (they did not, at least measured globally) is likely to bear the brunt of blame for the surprise. Last night its shares were down over (-8%). Caterpillar (CAT) is trading up +4.7% after posting better than expected results this morning fueled by overseas demand. SanDisk (SNDK) is up +4.24% after posting better than expected results last night after market close. This is helping Apple (AAPL) this morning which is trading up +2.9%. Baidu.com (BIDU) is trading up +8.6% on the heels of Google’s results. This is just a small sampling of what is moving to the upside this morning. On the downside there are just a handful of names. Intuitive Surgical (ISRG) is one of the big losers, down (-9.04%) after it missed earnings expectations. Schlumberger (SLB) is down (-2.51%) after it also missed earnings expectations.

GOOG upgrade parade: GOOG smashed earnings last night and looks strong this AM
GOOG target raised to $550 from $530 following solid quarter@RBCM
RBC would be opportunistic buyers on dips and maintains an Outperform rating on the stock.
GOOG upgraded to Buy from Hold@CSTI
Collins Stewart upgraded GOOG following the quarter upside and admits they were wrong in assessing strength in international trends. Collins Stewart established a $615 target on the stock.
GOOG: Quality initiatives and macro environment fears overdone@LEHM
Following the solid Q1 report, Lehman has greater confidence in GOOG going forward. Shares are Overweight rated. Target to $620 from $580. Shares are Overweight rated.
GOOG target raised to $650 from $600, reiterate Buy@THNK
ThinkPanmure believes GOOG delivered a solid quarter in a tough macro environment.
GOOG target raised to $620 from $600, maintain Outperform@OPCO
After the company reported Q1 results Oppenheimer views as strong, the firm thinks Google’s shares will trend upwards, and they predict that investors will be attracted back to Google’s stock.
GOOG target raised to $630 from $600, reiterate Buy@SBSH
Citigroup believes their core thesis is intact following GOOG’s “much better than feared” quarter.
GOOG: Reiterate Buy following solid Q1 results@BOFA
Banc of America believes the quarter should help ease investor fears of a slowdown in the company’s search business and maintains a $700 target on the stock.
GOOG: Target to $600 from $580 folloiwng Q1 beat@MLCO
GOOG upgraded to Buy from Hold@JEFF
Jefferies upgraded shares to reflect the company’s “impressive” improvements in monetization in Q1, no signs of weakness from the economic downturn and upside potential from display, video and mobile. They maintain a $600 target on the stock.

MER: Believe no additional capital raises are needed@SBSH
Citigroup expects MER to return to profitability starting next quarter, which they believe implies that no additional capital raises are needed. Citigroup thinks Q1 will market the inflection point in write-downs.
MER: Believe company will need more capital@OPCO
Uh Ok.

CELG: See significant leverage from the Pharmion acquisition@SBSH
Citigroup believes CELG should significantly benefit from the Pharmion acquisition in terms of both strong top-line growth and cost synergies. They expect CELG to guide 2008 EPS post merger $1.45-$1.50 on its May 8th earnings call and maintain a Buy rating on the stock.

WMT reiterated as a Top Pick@BOFA
Banc of America reiterated WMT as a Top Pick as they believe the diversity of the company’s global growth prospects provides a hedge against higher energy prices and a weak low end consumer in the U.S. They maintain a $60 target on the stock.

CSCO initiated with a Buy, target $28@LAZA

SPWR sell-off provides attractive entry point, reiterate Buy@PIPR
Piper believes the company’s components business is growing faster than expected with strong margin expansion and they remain bullish on its outlook. Piper does not think SPWR’s Q3 flat revenue guidance is a negative indicator.

ISRG downgraded to Accumulate from Buy@THNK
ThinkPanmure continues to expect ISRG to execute and grow but only expects minor share appreciation in 2008. Target remains $360. Interesting note, ISRG should try to fill the gap, interesting to watch the earnings reaction.
ISRG downgraded to Accumulate from Buy@THNK
ThinkPanmure continues to expect ISRG to execute and grow but only expects minor share appreciation in 2008. Target remains $360.

C says results included $6B in pre-tax write-downs
Results include $6.0 billion in pre-tax write-downs and credit costs on sub-prime related direct exposures. Results also include write-downs of $3.1 billion on funded and unfunded highly leveraged finance commitments, a downward credit value adjustment of $1.5 billion related to exposure to monoline insurers, write-downs of $1.5 billion on auction rate securities inventory, and a $3.1 billion increase in credit costs in global consumer.

Fast Money position updates: First moves- Macke likes MSFT, Adami likes MSFT too. Karen is shorting the British Pound (FXB).
Pete likes YHOO. Najarian Owns (AAPL), (BIIB), (CSCO), (ETFC), (NOK), (TSO), (XLF), (YHOO), (BSC) Calls, (CHK) Calls, (COP) Calls, (GOOG) Calls, (MSFT) Calls, (POT) Calls; Finerman’s Firm Is Short Pounds, (IYR), (IJR), (SPY), (IWM), (MDY), (COF), Owns (BJS), (MO), (MSFT), (NYX), (SUN), (TSO), (VLO), (YHOO); Finerman Owns (GS); Finerman’s Firm and Finerman Own (FLS); Macke Owns (MSFT), (DIS), (YHOO), (INTC)

The market is going to rally today off of C news which will support financials and the brokers, and GOOG should light the tech sector up. With those two legs we could see the market strong today as the background. I’ll be focusing on BIDU, GOOG, MSFT, CSCO, GS, NFLX, PCLN, LEH, AAPL, RIMM, AMZN, MA, V, solars, steel, coals, energy. There should be an accentutation in tech. Stay positive and look for great setups and ask for high probability plays! Stay focused and aim for your daily goal. Trade methodically. Great trading and good luck. Have a great weekend and Happy will be back after next week (have a great vacation in Hawaii buddy!).