BETWEEN THE HEDGES

Tuesday, January 08, 2008

Wednesday Watch

Posted by Gary .....at 11:20 PM

Late-Night Headlines
Bloomberg:
- Alliant Techsystems(ATK), the only supplier of solid-rocket motors for US space shuttles, will buy a unit of Canada’s MacDonald, Dettwiler and Associates Ltd. for $1.32 billion to build complete satellite systems.
- Bear Stearns Cos.’(BSC) James “Jimmy” Cayne handed over the CEO role to his hand-picked successor, staying on as chairman as the firm tries to recover from the collapse of the subprime mortgage market.

Wall Street Journal:
- McCain, Clinton Win Primary; White House Race Is Wide Open.

MarketWatch.com:
- Corporate insiders continue to be bullish on their firms’ stock.

BusinessWeek.com:
- Playing the 2008 Election.

USA Today.com:
- Colleges serve up job hopefuls as hotels’ hiring needs jump.

Reuters:
- Bear Stearns(BSC) may become takeover target amid unrest.
- Hynix sees DRAM rebound in 2008.

TimesOnline:
- Shell and Total are vying to develop a huge gasfield in what was Iraq’s most violent province as a source for exports to Europe.

Late Buy/Sell Recommendations
Citigroup:
- Maintain Buy on (FORM), target $44.

Lehman Brothers:
- Upgraded (AUO) to Overweight.

Night Trading
Asian Indices are -.50% to +.25% on average.
S&P 500 futures +.26%.
NASDAQ 100 futures +.34%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Macro Calls
Upgrades/Downgrades
Rasmussen Business/Economy Polling
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (MOS)/.73
- (SGR)/.49
- (RT)/-.20
- (VOXX)/.35
- (AA)/.34
- (RBN)/.67
- (ETP)/.49
- (TONS)/.95
- (WDFC)/.38

Upcoming Splits
- None of note

Economic Releases
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil inventory decline of 2,100,000 barrels versus a 4,056,000 barrel decline the prior week. Gasoline inventories are expected to rise by 1,600,000 barrels versus a 1,985,000 barrel rise the prior week. Distillate supplies are expected to rise by 1,000,000 barrels versus a 569,000 increase the prior week. Finally, Refinery Utilization is estimated to rise .1% versus a 1.29% gain the prior week.

Other Potential Market Movers
- The weekly MBA Mortgage Applications report, (VFC) analyst meeting, JPMorgan Healthcare Conference, Consumer Electronics Show, Needham Growth Conference and Citigroup Entertainment Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by automaker and technology stocks in the region. I expect US equities to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

Evening Review

Posted by Gary .....at 3:23 PM

Market Summary
Today’s Movers
Market Performance Summary
WSJ Data Center
Sector Performance
ETF Performance
Style Performance
Commodity Movers
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Commentary
After-hours Movers
After-hours Stock Quote
In Play

Stocks Sharply Lower into Final Hour on Rising Energy Prices, AT&T Comments and Financial Sector Weakness

Posted by Gary .....at 3:19 PM

BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Medical longs, Software longs and Internet longs. I have not traded today, thus leaving the Portfolio 75% net long. The overall tone of the market is negative today as the advance/decline line is lower, sector performance is mostly negative and volume is above average. Investor anxiety is above average again. Today’s overall market action is bearish. The ISE Sentiment Index hit a very depressed 46.0 this morning, near the historic low of 36.0 that occurred on July 3, 2006. The S&P 500 rose 16.3% over the next 8 months. The fact that negative news is still having such an impact on the broad market is a near-term negative. I still think we are very close to a meaningful bottom, however. Current weakness is providing very attractive entry points for long-term growth stock investors, in my opinion. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering and bargain hunting.

Today's Headlines

Posted by Gary .....at 2:36 PM

Bloomberg:
- Copper is jumping 5% to a seven-week high, leading a commodity rally, on speculation global demand for raw materials won’t slacken.
- GM, the world’s largest automaker, is keeping pace with Toyota Motor in developing vehicles powered by alternative-energy sources, CEO Rick Wagoner said.
- Renaissance Technologies and JPMorgan Chase, the world’s biggest hedge fund managers, trailed rivals in 2007 as stock-pickers with few assets sidestepped losses caused by the collapse of subprime mortgages.
- Scientists have begun competing for the first US government grants to investigate a stem cell breakthrough that may lead to new treatments for diabetes, heart disease and brain disorders and avoids destroying human embryos.
- Qualcomm Inc.(QCOM) CEO Paul Jacobs said demand for mobile phones was strong over the year-end holiday shopping season.

Wall Street Journal:
- Chrysler Aims to Double Overseas Sales.
- Cisco Technology Focuses on Social Networking Trend.
- Sony to Emphasize Innovation, High-Def Devices.
- Is Even-Higher Definition Next Big Thing for TVs?

NY Times:
- Comcast Plans to Offer a Huge Menu of Films.

Barron’s:
- Seagate(STX) Not Seeing Slowing In Europe Or Asia, CEO Watkins Says.

Washingtonpost.com:
- Qualcomm(QCOM) Unveils UltraMobile PC.

Morningstar.com:
- GM(GM) to Unveil Hydrogen-Elec Cadillac Crossover Concept Vehicle.

Handelszeitung:
- UBS AG CEO Marcel Rohner expects the crisis in the US credit market to stabilize. UBS has valued its investments “adequately” and has “substantially” reduced its risk, Rohner said.

Bear Radar

Posted by Gary .....at 1:38 PM

Style Underperformer:

Small-cap Value (-1.12%)

Sector Underperformers:

Airlines (-4.26%), I-Banks (-2.53%) and Banks (-2.10%)

Stocks Falling on Unusual Volume:

GBX, SVU, AKNS, PANL, VSAT, FEIC, MEAS, CITP, ORLY, UNFI, MASI, UAUA, RYAAY, MATK and MTG