Oxen Group Nightly – Jan. 26, 2011 (www.theoxengroup.com)
The markets made it slightly higher on Wednesday after spending most of the day even higher in the green, but the real story came in after hours with a great round of earnings headed up by Netflix (NFLX) and Qualcomm (QCOM). Intraday, the market hit 12,000 before faltering off that level. The market moved up after bullish news from President Obama that he wants to have lower tax rates for businesses at the same time curbing government spending (good luck!). Further, the Fed commented that they were not making any changes to their $600B bond-buying plan or changing borrowing rates.
The Dow finished up 8. The Nasdaq finished up 20. The S&P 500 finished up 5.5. Gold finished up nearly a point.
The Oxen Group performed exceptionally on the day. We were able to close a number of positions in the green and get solid earnings exposure in AH. We closed 3/4 of our position in Ryland Homes (RYL) before the close for a 3.5% gain. While earnings came out lackluster, the stock did not lose value in AH. We also closed our two-day Overnight Trade in Royal-Caribbean (RCL) before earnings as the stock gained over 3.5% from our entry yesterday. We also closed 3/4 of E*Trade (ETFC) for a 0.70% gain intraday, but earnings were weak in AH. The stock looks like it will open lower tomorrow, and we will close neutral. We also bought Netflix (NFLX) to start the day, but the stock trailed off the morning highs. We closed 3/4 of the position for a 1.5% loss. Yet, our entry at 185.20 is looking very solid after a great earnings report that has taken the stock over 200 in AH. We will close the stock tomorrow in the green. Our only major loss for the day was a 1.5% loss in our Short Sale Overnight Trade in MOLX that did not work out well after the stock was upgraded this morning.
On the Longtem Virtual Portfolio, we did not have any new positions today. Our solar group lost some value after a major run-up, but we have cashed in on gains for these stocks already. We did do an update on Trina Solar (TSL) and reiterated the stock as a Buy. We did, however, increase the price target to $39.
Moving into tomorrow, we are holding RUTH, a 1/4 position in ETFC, NFLX, and RYL. After the open, we will be down to our doubled position in RUTH only. Tomorrow, we will be able to reload on some new Midterm Trades that look good moving into next week’s earnings and other positions.
Economic news was great today with new home sales leading the way. Sales came out at 329K versus the consensus expectations of 300K. This news helped our RYL position. Tomorrow, jobless claims and durable orders are on the docket, but earnings will rule.
In company news, earnings continue to rule the market. This evening, Netflix (NFLX) made quite a move with an EPS of 0.87 vs. 0.71 and a great subscriber base that beat expectations with over 2M new subscribers in Q4. Additionally, Qualcomm (QCOM) had excellent earnings with an EPS beat at 0.82 vs. 0.72. Tomorrow morning, AT&T (T), Caterpillar (CAT), Nokia (NOK), and Procter & Gamble (PG) our important earnings.
Articles for today:
Guest Articles:
Cartoon of the Day:
Quote of the Day:
"Based on my own personal experience — both as an investor in recent years and an expert witness in years past — rarely do more than three or four variables really count. Everything else is noise."
— Marty Whitman
Visit us at www.theoxengroup.com. Email us at contact@theoxengroup.com or call us at 1.800.790.1160.
Good Investing!
