Thursday, August 09, 2007
Sector Spotlight: Homebuilders
Isn't it odd that our real estate market is destroying the world? Apparently, investment banks around the globe have exposure to sub-prime, which is why I'm short LAZ.
Keep an eye on FXY (yen). As that fucker goes up, the "yen carry trade" unravels.
Being that we are down a quick 180, there is room for a bounce. However, it's worth noting, leadership sectors are deep in the red. I would not bet on a full recovery, today.
There is minor strength to be found in tech, specifically software related names. Moreover, there is notable momentum in RACK, RTEC, SNDA, KLAC, RNOW, NVDA, LIOX, MFLX, MVIS, SNDK, LVLT, KNOT, ELOY, ICGE, CSCO, FFIV, GGBM and LORL.
Additionally, some of the retailers are enjoying strength, notably PLCE, ZUMZ, CPWM, GPS, SCVL, LF, JCG, UA and BBY.
Basically, there are places to hide.
Finally, I'm amazed to see strength in the homebuilders. Crazy people are buying BZH, MTH, OHB, RYL and TOL. I'd stay away from the homies. The only reason they are up is due to short covering. Beware.
NOTE: For a trade, I am buying more CENX (into weakness) and shorting LAZ (into strength).
NOTE II: Whoever brought LLNW public should be arrested and stoned.
Keep an eye on FXY (yen). As that fucker goes up, the "yen carry trade" unravels.
Being that we are down a quick 180, there is room for a bounce. However, it's worth noting, leadership sectors are deep in the red. I would not bet on a full recovery, today.
There is minor strength to be found in tech, specifically software related names. Moreover, there is notable momentum in RACK, RTEC, SNDA, KLAC, RNOW, NVDA, LIOX, MFLX, MVIS, SNDK, LVLT, KNOT, ELOY, ICGE, CSCO, FFIV, GGBM and LORL.
Additionally, some of the retailers are enjoying strength, notably PLCE, ZUMZ, CPWM, GPS, SCVL, LF, JCG, UA and BBY.
Basically, there are places to hide.
Finally, I'm amazed to see strength in the homebuilders. Crazy people are buying BZH, MTH, OHB, RYL and TOL. I'd stay away from the homies. The only reason they are up is due to short covering. Beware.
NOTE: For a trade, I am buying more CENX (into weakness) and shorting LAZ (into strength).
NOTE II: Whoever brought LLNW public should be arrested and stoned.
Comments:
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Do you motherfuckers "get it" yet with NSTK? Or do I have to beat you over the head with a blunt object.
Harry: I loaded up on NSTK this morning and came here to thank you.
Danny: You deserve a purple heart for VLCM.
Danny: You deserve a purple heart for VLCM.
fly you have to look in to algn and hnr. Algn is a great growth story and HNR should be getting their payment from Venezuela, it is a great value play also company announced a 50 mil buyback.
manny,
I believe yes, but the short term will be very very volatile. The company is holding a webinar tomorrow to discuss its RNAi program, kind of a crown jewel that it might spin off. Expectations are for a significant announcement so short of that you could see a mind-numbing sell-off. And it's bio-tech so it's risky business.
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I believe yes, but the short term will be very very volatile. The company is holding a webinar tomorrow to discuss its RNAi program, kind of a crown jewel that it might spin off. Expectations are for a significant announcement so short of that you could see a mind-numbing sell-off. And it's bio-tech so it's risky business.
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