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Friday, November 26, 2010

FRI. NOV. 26- Children on The Floor

Last year on the Friday after Thanksgiving, I wrote this piece:
http://epiphanytrading.blogspot.com/2009_11_27_archive.html

Everything from that post stands. Today is a day that is typically either very busy with a lot of movement- particularly in microcaps- or a day in which I find myself wondering why I bothered to get up at 5AM to come to work after a full Thanksgiving Day. So, indulge me if you will as I diverge slightly onto a fun topic. Now, much what I am about to denote is hearsay as I couldn’t find *anything* on the Internet or the library, but I have it from some very good sources from the floor of the NYSE with those guys having the documentation. Wow. All that build-up for something that is unimportant in the scheme of things! As was included in last year’s title, today is “Kid’s Day” on the floor of the New York Stock Exchange. I got to wondering about the origin of it as a lot of the traders in my office- former NYSE floor guys themselves with parents who worked on the floor- did not remember any such occasion when they were children themselves. As the story goes, circa 1988, a few members of the support staff brought their kids to work just simply to show off the NYSE and show them around. Remember, the “Take Your Daughters To Work Day” was not started until 1993. In any case, there was a bit of a ruckus after it happened again the next year with traders and specialists wondering why their subordinates could bring their kids. So, a few of the NYSE floor people started bringing their kids to work to show them the floor and the computers. The movement gained traction over the next few years with the NYSE informally setting up things like coloring stations for the kids. As business network reporters gained access to the trading floor, they began showing some of the kids on television. Well, the pace of stock trading grew and interest in the stock market exploded during the 1990’s. The NYSE knew a marketing opportunity was there particularly with the great majority of traders now bringing their children to work in 1997 when it officially designated the day after Thanksgiving as Kid’s Day. There are now more formalized stations for children and everything is now done in a nice organized way. So, whether it is busy or slow today, do take a look up at the opening (and closing) bells and take a glance at all the children waving as it’s always a nice contrast to the business day ahead.

Markets netted out for the last two days were up slightly in Tokyo and down slightly in Hong Kong. However, Europe in particular today is getting drubbed with all of the major bourses off well over 1% as debt spreads have widened dramatically in Ireland, Portugal, and Italy. The dollar is flat against the yen but much stronger against the euro. Consequently, commodities are sharply lower with oil and gold both down 1%. Futures are down sharply consequently in a bit of a reminder of the Abu Dhabi situation this time last year. For the short day, look for stability down there overall with rumor-driven illiquid trading. The focus will be almost all momentum-based with a dearth of news with particular attention paid to relative strength plays, small cap microcaps which closed near a high or low on Wednesday, and commodities plays.

Reiterating-

If the whole story is not there -

If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.

If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-


Good- The following stocks have good news and/or a strong technical pattern

GES- closed near a high after posting great earnings

AAPL- closed near a high

AMZN- closed near a high

CRM-closed near a high

TIF- closed near a high after posting great earnings

JKS- closed near a high

LVS- closed near a high

POT- closed near a high

AAU- closed near a high after an oil discovery

BGC- closed near a high

MWW- closed near a high

TTM- closed near a high

BITA- closed near a high

STV- closed near a high

TGA- closed near a high

CREE- closed near a high after an upgrade by Morgan Keegan

ASCMA- closed near a high on rumors of an imminent buyout

DLM- to be acquired for $19/share in cash

CPII- to be acquired by Veritas Capital for $19/50/share in cash


Bad-The following stocks have bad news and/or a weak technical pattern

JADE- closed near a low

MGA- no longer interested in buying an automaker

Earnings:

None today


Epiphany Trading, LLC
www.epiphanytrading.com

Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President

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