Tuesday, October 17, 2006

Updates Galore

This morning the core PPI came out much hotter than expected at .06%, raising inflation concerns and burning the indices.

Chicago Mercantile Exchange
Big news today, as CME Bought the Chicago Board Of Trade for $8 Billion, making even the commentators on CNBC confused about how CME went up. As we all know, the acquirer usually drops, while the acquired jumps (The stock began up 6% and is now up 2%). We are slightly better than break-even on CME at this point and I am holding my short position because the charts still look bad.

Aqua America
Good price action has been going on as buying volume has been picking up. The stock is reaching near its 200DMA; I believe it will eventually get over the hump, but expect some testing and retesting at this level. The AP wrote this article yesterday on water companies.

La-Z-Boy
Last Thursday LZB cut the company’s earnings guidance by 10 cents per share. The stock shed a few points and we are now in business as far as the short trade is concerned.

Nintendo
This stock is showing a possible Cup-and-Handle pattern and with Sony’s recent screw-ups, Nintendo should be able to take some market share (or investor dollars) to keep its momentum this holiday season.

As a side note- Amgen reports on Monday, read the comments section of the last post for my thoughts.

Have a great week,
-Chris

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