As the legend goes, approximately 518 years ago tomorrow, Christopher Columbus discovered The New World. Mind you, the politically correct (much less factually correct) would note that humans of course were in America before October 12, 1492. However, what Columbus did was to bring the idea that America did exist to the rest of the civilized world (specifically the burgeoning peoples of Western Europe). Mind you, I do not mean to type up a sanitized history, but it is true that there was precious little change or advancement in the Western World until the beginning of the 16th Century. It is true that people enjoy things like Columbus Day parades, but let’s not forget that it is a recognized holiday today. But it also happens to be one of those days where people wonder if there is mail delivery (no), people wonder if it is a bank holiday (yes), with federal offices closed yet things like most libraries open. The bond market also happens to be closed today. This takes me into the stock market- it’s a semi-holiday today and it will impact trading. Volumes tend to be light with movements muted overall but exaggerated when prices do budge due to illiquidity. Think of today as the stereotypical calm before the earnings and markets storm to come; do not overtrade…and watch a good parade (or baseball game)!
Markets in Asia were generally higher overnight. Tokyo was closed but Hong Kong was up 1.2% with the other Asian indexes following suit. The gains are more muted in Europe with the bourses up about 0.1% to 0.3% across the board. The dollar is a little stronger with oil a tinge weaker with gold flat. The bond market is closed for the Columbus Day holiday. Futures are marginally ahead. Look for trading to be slow overall today with prices on both sides of flat but the bias to the upside pending an exaggerated light volume move in the currencies or commodities markets. Focus on the myriad of small cap biotechs in the news, the solars, the stocks making merger news, and the banks on the continued rumors about the foreclosure process.
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
BORN- closed near a high
FUQI- closed near a high
CBEH- closed near a high
GBR- closed on a high
MGM, WYNN, LVS- closed near highs after Las Vegas Strip gambling revenue jumped 21% in August according to Nevada’s Gaming Control Board
AAPL- closed near a high after Oppenheimer raised its price target
DDS- closed near a high
CLF- closed near a high
RIMM- closed near a high
SNDK- closed near a high
POT, CF, AGU- closed near their highs in a strong fertilizer sector
FCX- closed near a high
JCP- Vornado announced it took a 10% stake in company
EXAS- closed near a high
HOGS- closed near a high
NTGR, WAG- featured on “Mad Money” on Friday night
LPH- traded higher Friday after being recommended in a newsletter
CHK- announced a deal with CNOOC (CEO) in which CNOOC Int’l. Limited will purchase a 1/3 stake in a CHK natural gas field in which CHK will receive $1 billion plus funding of the drilling costs until an additional $1.1 billion has been paid
LDK- boosted earnings outlook
IMGN- reported positive Lorvotuzumab Mertansine data and raised cash guidance
EXEL- announced major licensing program to BMY
CSIQ- guided shipments to upper end of forecast range with the CFO leaving amid the SEC inquiry
ARG- lost a ruling which will allow APD to call for another annual meeting in January in the ongoing hostile takeover saga for ARG
ARQL- reached agreement with FDA on special protocol assessment of phase III trial of ARQ 197
HRBN- received $24/share buyout bid from CEO
Bad-The following stocks have bad news and/or a weak technical pattern
TSN, SFD- closed near a low on fears higher agricultural prices will crimp profits
FSLR- closed near a low
BGC- closed near a low after a ratings cut by Sidoti
NDN- closed near a low after posting poor earnings
JAZZ- FDA cannot approve JAZZ”s NDA for JZP-6 in present form
ALXA- received complete response letter from FDA on Adusuve with the FDA indicating the application is not ready for approval
CXSW- earnings warning
Earnings:
MON OCT 11 BEFORE
None today
MON OCT 11 AFTER
GPN
None today
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
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