WED/DEC. 19 - ZACK's TRADING COMMENTARY - tech rally predicted into Friday. Hmmmm. Sorry, I should have posted this earlier. Watch for it tomorrow AM.
******
EXCHANGE TRADED FUNDS: We a seeing sellers in QQQ (-0.2%) that are larger than usual from multiple accounts, and buying in UTH (+2.9%).
OTC:
EDUCATION: Group is off on profit taking after a huge run, but remains fairly quiet.
NETWORKERS: Trading in a tight range, but no real catalysts in sight. Market seems to be gaining ground, but still quiet.
TELCO: HAND (+17.3%) priced a $7M shelf offering and received an investment from QCOM (-0.3%). There is strong demand for HAND, and we are a better buyer. The group is being helped up as investors are taking this as a signal there could be a resurgence in the space. Light volume is leading to higher volatility, in addition to some end of year positioning.
CABLES: T (+1.9%) board is meeting today to discuss its broadband unit. We are seeing selling in the group.
BIOTECH: BTK Index (+0.5%). We are active buyers in AMGN (-0.4%) and IMNX (-0.03%), seeing accounts adding to positions. Light pre-holiday volume.
SOFTWARE:Opened lower this morning with the futures, but group rallied after the leading indicators were released at 10am. The group is still down on the day, but we are a better buyer. Active in MSFT (+0.4%), ORCL (+1.5%), MANU (+5.3%), TIBX (+5.7%).
SEMICONDUCTORS: SOX (-2.7%) weaker on some profit taking. Group is underperforming the broader market after pre-announcement out of TQNT (-14.2%) and negative outlook from MOT (-5.3%).
LISTED:
HEALTHCARE: Large cap drugs acting okay with the exception of LLY (-2%) after the company failed an FDA inspection at a plant in Indiana. HMOs and Hospital stocks are weak with some profit taking. Specialty Pharma are weaker with the exception of KG (+1.1%) -- BRL (-1%), FRX (-1%) and MYL (-1%) all selling off. MedTech is mixed GDT (-4%) weak and MDT (+1.5%) strong in what is a reversal of past trends. Quiet over all and slightly better for sale.
FINANCIALS: Insurance index is flat, with volumes picking up, still no trend in the group. Brokerage stocks are acting well after MWD (+3.3%) reported better than expected numbers and a good outlook. Credit Card stocks are popping off news out of KRB (+4%) this morning that they expert to meet or exceed Q4 and FY estimates because they made more loans and added customers in the period. Banks are up with the other groups.
RETAIL: Mixed; turning up a little with the market. Stocks are firmer than fundamentals; promotions are increasing sales, no new news.
BEVERAGES: KO (+3%) announced better than expected volumes, and positive comments on PEP (+4.4%) by a competitor this morning have the beverage stocks acting strong.
TECHNOLOGY: Weak; MU (-3%) and MOT (-5.5%) pre announced this morning, pulling down the semis group today. We're a little better to buy over all; expect a rally in tech into Friday.
UTILITIES: Group is strong on positive reaction to announcement of a CPN (+10%) convert.
INDUSTRIALS: AA (-7%) preannounced with negative forward looking comments; We expected the stock to get hit harder than it did. Interest in deep cyclical stocks with a 2002 recovery is maintaining buy interest in the group.
HOMEBUILDERS: Continue to see buyers across the board.
TELCO: Opened weaker, have since turned and are better to buy. We're active in PR (-4%) which had a big run in anticipation of VZ (+1%) buying them - news out today that VZ will pay less than expected so stock selling off.
ENERGY: Busy; group strong. Crude is up $0.47 with news this morning that the US military boarded a Middle Eastern tanker; we expect it to come back in. The WMB conference call this morning cleared the decks for energy stocks as well, as it clarified the balance sheet. We're seeing short covering and real buying in the group, including EPG (+3%) WMB (+6.5%), and DYN (+13.5%).
TRANSPORTATION: Airlines are better after sold off lately. Seeing strength in AMR (+1%), DAL (+1.3%), CAL (+2%) and U (+2.3%). Rails rolled over after great strength in last couple of days.
AEROSPACE & DEFENSE: Better to buy; we're a sized buyer of RTN (-2%).
CONSUMER PRODUCTS: Mixed, light volume. |
