The markets continued to shoot higher to start off this week after good news was released from a number of companies, and the Dow finished within 200 points of 12,000, which is the highest it has been since June 2008. Intel gave technicals a big catalyst when the company announced that they will raise their dividend. Further, the National Association for Business Economics commented that they are most optimistic about the economy and jobs coming back since December of 2007. Overall, though, the market showed great strength rebounding on bargains that have hit the market after a red finish to last week.The Dow finished up 108. The Nasdaq finished down 21. The S&P 500 finished down 1.66. Gold finished neutral.
The Oxen Group finished the day well with a solid day trade in Ethan Allen Interiors (ETH) that worked for 2.1% intraday. The stock made a nice move off of our early morning entry with earnings looming. Some investors who held the stock into earnings were given a great report, and the stock rose over 9% in after hours. We, additionally, entered into four new positions today. We took a double position in Ruth’s Hospitality (RUTH) as the stock looked poised to make a nice bounce after a two-week drop. We took another position in DryShips (DRYS) as the stock has dropped to levels it was at in November, and it looks poised for a bounce. We also entered two new plays of the week in E*Trade (ETFC) and Ryland Homes (RYL). Both stocks looked poised for big gains before earnings as we entered them today.
On the Longtem Virtual Portfolio, we were able to exit a 1/3 position in one of our holdings in Trina Solar (TSL). The Longterm Ratings Virtual Portfolio has now improved to 2% realized gains with our four exits thus far in the $46,000 Virtual Portfolio. We have 10/12 positions in the green. We, additionally, updated our Skechers story with a reiteration at Hold and dropped our price target from 28 to 24.
Moving into tomorrow, we are holding RUTH, DRYS, ETFC, and RYL. We will be hoping for some good news out of Consumer Confidence and the Housing Market Index as well as strong earnings to help keep this rally going. The buy up today on limited news was a great sign for the market.
Economic news was limited today to the Economics Board news, but tomorrow starts off a big week of economic news. Tomorrow, we see Consumer Confidence coming out and the NAHB Home Price Index. Both can have a nice impact on the markets. Yet, company news will be big.
In company news, earnings continue to rule the market. This evening, American Express announced their anticipated miss of 0.94 EPS vs. 0.97. Amgen beat estimates and saw revenue rise just 1% YOY. The pharma company was flat in AH. Zions (ZION) disappointed with their earnings, continuing a poor theme for the financials. These should be overshadowed, however, by tomorrow morning’s big earnings from 3M, AK Steel, BlackRock, and Johnson & Johnson.
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"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
– Warren Buffett
Visit us at www.theoxengroup.com. Email us at contact@theoxengroup.com or call us at 1.800.790.1160.
Good Investing!
