Courtesy of David at The Oxen Group
Buy Pick of the Day: USD
The Oxen Group, for Tuesday, is excited for the prospects for Proshares Ultra Semiconductors ETF (USD). The semiconductor broad line sector looks to be in very good shape for a nice run tomorrow. It all starts with a very bullish signal on semiconductors coming from Texas Instruments Inc. (TXN). The company moved up its quarterly guidance from 0.01 – 0.15 EPS to 0.14 – 0.22 EPS. TXN is seeing great demand out of Asia. Adam Benjamin of Jeffries & Co. believes that semiconductors are bouncing off a February bottom. This news helped the entire sector in after hours trading, sending USD up over 3%. Further, Qualcomm (QCOM) had some great chip news from the WWDC in San Fransisco that they have a new mirasol technology that is going to be able to make better, brighter pictures on phones, mp3 players, etc. With very little economic data coming in tomorrow to quash this bullish news, it looks to be a big day for this tech sector. Futures for the NASDAQ have not really moved in either direction, but the S&P futures have moved lower than the NASDAQ, showing the positives in tech. The technicals on USD are actually working well with the stock. While tech has run up, semiconductors have not, as a whole, moved up so well. USD has seen some selling off lately, and it has potential to move up on stochastics and is in the middle of its bollinger band.
Entry: Recommend buying within first 15-30 minutes after slight pullback.
Exit: We recommend exiting after a 2-5% increase.
Upper Resistance: 21.00
Summary of Oxen Trades, May 29 – June 7.
| Date | Stock | Entry – B (S) | Exit | %Change |
| 5/29/2009 | GPS | 16.99 | 17.67 | 4.00% |
| 5/30/2009 | TM | 80.77 | 81.72 | 1.18% |
| 6/2/2009 | SRS | 18.06 | 18.6 | 3.00% |
| 6/3/2009 | DUG | 16.68 | 17.35 | 4.00% |
| 6/4/2009 | TLAB – SS | 5.95 | 5.84 | 2.00% |
| 6/5/2009 | XOP | 35.84 | 35.85 | 0.00% |
| 6/8/2009 | BLK | 164.76 | 168.87 | 2.50% |
