Jim Cramer Blog

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
JDS Uniphase (NasdaqGS:JDSU - News) beat earnings estimates on Wednesday afternoon, announcing $0.08 EPS over an expected $0.06 EPS. JDSU's PowerRating (for Traders) is 5.
Advance Auto (NYSE:AAP - News) beat earnings with $0.61 EPS over a consensus of $0.58 EPS. AAP's PowerRating (for Traders) is 4.
Agilysys (NasdaqGS:AGYS - News) reports earnings on Thursday morning before the bell, with analysts looking for $0.10 EPS. AGYS's PowerRating (for Traders) is 4.
Dominion (NYSE:D - News) should announce $1.74 EPS on Thursday before the market opens. D's PowerRating (for Traders) is 5.
Analysts are watching for Dril-Quip RQ to report $0.62 EPS on Thursday morning before the bell. DRQ's PowerRating (for Traders) is 5.
When Eastman-Kodak (NYSE:EK - News) announces quarterly results tomorrow morning, analysts will be watching for $0.24 EPS. EK's PowerRating (for Traders) is 5.
Exxon Mobil (NYSE:XOM - News) looks set to report $1.74 EPS tomorrow morning. XOM's PowerRating (for Traders) is 5.

Labels: AAP, AGYS, D, EK, Hot Stocks, JDSU, XOM

JDSU today reported results for its first quarter ended September 29, 2007.
Net revenue for the first quarter of 2008 was $356.7 million and the net loss was $6.9 million, or $(0.03) per share. This compares to net revenue of $318.1 million and a net loss of $17.4 million or $(0.08) per share in the first quarter of 2007.
On a non-GAAP basis, net revenue for the first quarter was $357.2 million and the net income was $18.0 million, or $0.08 per share. This compares to non-GAAP net revenue of $318.2 million and net income of $6.8 million, or $0.03 per share in the first quarter 2007.
On an adjusted EBITDA basis (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) the Company reported $23.7 million for the first quarter, which compares to $9.6 million for the first quarter 2007.
"In Q1 all key financial metrics improved sequentially as well as year-over-year. For the third consecutive quarter, the company was free cash flow positive at more than $27 million," said Kevin Kennedy, JDSU's Chief Executive Officer. "Looking forward, JDSU remains focused on innovation and continuous improvement of our business model."

Labels: JDS Uniphase Corp., JDSU

The Federal Reserve, confronted with surging oil prices and a slumping housing market, cut a key interest rate by a quarter-point on Wednesday, the second rate reduction this year.
The central bank lowered the federal funds rate to 4.5 percent in an effort to stimulate economic activity and keep the country from dipping into a recession. The move will make it cheaper for consumers and businesses to borrow money.
The Fed's action came on the same day the government announced that the overall economy grew at a stronger-than-expected 3.9 percent rate in the July-September quarter.
However, economists are worried that growth will be less than half that amount in the current quarter as the country struggles with a deepening housing slump.

Labels: Federal Reserve, Wall street rally

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
Garmin Dec 70 Calls (NasdaqGS:GRMN - News). GRMN's PowerRating (for Traders) is 5.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Beckman Coulter Dec 65 Puts (NYSE:BEC - News). BEC's PowerRating (for Traders) is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Crocs Nov 85 Calls (NYSE:CROX - News). CROX's PowerRating (for Traders) is 4.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Google Nov 600 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Alpha Natural Resources (NYSE:ANR - News). ANR's PowerRating (for Traders) is 6.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
GenProbe (NasdaqGS:GPRO - News). GPRO's PowerRating (for Traders) is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Starbucks (NYSE:SBUX - News). SBUX's PowerRating (for Traders) is 4.
Published By TradingMarkets.com

Labels: ANR, BEC, CROX, GOOG, GPRO, GRMN, SBUX, stock options

MasterCard Incorporated (NYSE: MA - News) today announced financial results for third-quarter 2007. For the quarter, the company reported quarterly net income of $314 million, or $2.31 per share on a diluted basis, which includes after-tax gains of $70 million or $0.51 per share on a diluted basis from the partial sale of the company's investment in Redecard S.A. in Brazil.
Net revenues for the quarter were a record, at $1.08 billion, a 20.1% increase versus the same period in 2006. Currency fluctuation (driven by the movement of the euro relative to the US dollar) contributed approximately 2.3% of the increase in revenues for the quarter.
Fueling the higher revenue in the third quarter versus the same period in 2006 was growth in MasterCard's gross dollar volume (GDV), which increased 12.8% on a local currency basis, to $577 billion; a 13.3% increase in the number of transactions processed to 4.8 billion; and, an increase in cross- border volumes of 20.6%.
Worldwide purchase volume rose 14.1%, on a local currency basis, during the quarter to $430 billion, driven by increased cardholder spending on a growing number of MasterCard cards. As of September 30, 2007, the company's customers had issued 878 million MasterCard cards, an increase of 11.3% over the cards issued at September 30, 2006.

Labels: MA, Mastercard Inc.

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Taser International (NasdaqGS:TASR - News). TASR's PowerRating (for Traders) is 9.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Inverness Medical Technology (NYSE:IMA - News). IMA's PowerRating (for Traders) is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Amazon.com (NasdaqGS:AMZN - News) & Illumina (NasdaqGM:ILMN - News). AMZN's PowerRating (for Traders) is 6, and ILMN's PowerRating (for Traders) is 6.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Autozone (NYSE:AZO - News). AZO's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
JM Smucker (NYSE:SJM - News). SJM's PowerRating (for Traders) is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Beazer Homes (NYSE:BZH - News). BZH's PowerRating (for Traders) is 3.
Published By TradingMarkets.com

Labels: AMZN, AZO, BZH, Hot Stocks, ILMN, IMA, SJM, TASR

Bullish
Vodafone (VOD),
Annaly Capital Management (NLY), thinks that interest rates will be cut tomorrow, and this company will benefit.
Perry Ellis International (PERY),
NexCen Brands (NEXC), would rather recommend it on Friday.
Phillips-Van Heusen (PVH),
Synchronoss Technologies (SNCR), Cramer is bullish
ValueClick (VCLK), Cramer thinks it is valuable to many large internet companies, and that it will be bought out by the end of the year, so he is bullish.
Apple (AAPL), Google (GOOG), Research In Motion (RIMM)- Bullish on all three.
Furmanite Corporation (FRM), bullish on this infrastructure play.
Foster Wheeler (FWLT),
Altria (MO)
Colgate-Palmolive (CL).

Bearish
J2 Global Communications (JCOM)- "Don't Buy."
3SBio (SSRX), Cramer is sticking to his Four Horsemen of China
Vimpel-Communications (VIP), stay away from this stock.
E-House (China) Holdings (EJ), China is too hot to speculate in this stock.
ConAgra Foods (CAG), Cramer can't recommend this stock.
Synaptics (SYNA)- Cramer doesn't want to touch this stock.
Procter & Gamble (PG)- would rather have you in Colgate (CL).

Labels: AAPL, CNBC, FRM, GOOG, Lightning Round, Mad Money Lightning Round, NEXC, NLY, PERY, PVH, RIMM, SNCR, VCLK, VOD

Crude Oil: Crude oil declined 3% today as investors now fear that the global growth story might be in jeopardy. Finerman said that if you feel the US economy is going to slow down, then demand for oil will also drop. She would look to short the United States Oil Fund (USO). Adami said that shorting Exxon Mobil (XOM) ahead of earnings is a gutsy trade that could pay off big. Dylan Ratigan mentions one more way to short oil is to buy the UltraShort Oil & Gas ProShares (DUG).
Technology: Adami liked hearing that Dell (DELL) is announcing a big buyback, while the stock is at a 52 week high. Najarian says this plays well for Dell, as well as Apple (AAPL), Hewlett-Packard (HPQ) and Microsoft (MSFT). The Wall Street Journal reported that Verizon (VZ) and Google (GOOG) are discussing a mobile phone partnership.
Video Games: International Game Technology (IGT) and Electronic Arts (ERTS) are both set to report earnings this week. Macke thinks the trade is to buy Activison (ATVI), Nintendo (NTDOY) and Microsoft. Najarian noted monster options activity in the November $17.50 calls for Take-Two Interactive (TTWO). The action makes him think that TTWO is set to move higher.
Word on the Street
Procter & Gamble (PG) reports a 14% rise in profits but disappoints Wall Street on its full-year outlook. Najarian favors Colgate-Palmolive (CL) overseas.
Merrill Lynch (MER) drops after former CEO Stan O'Neal leaves. Finerman doubts the CO-CEO arrangement will work. Adami continues to like Raymond James (RJF).
Wynn Resorts (WYNN) fell in after-hours trading. Najarian would look to buy the stock on selloff. Adami would rather be long Las Vegas Sands (LVS) and Boyd Gaming (BYD).
Under Armour (UA) trades up 7% on strong earnings.
Masco also traded up 4% on strong earnings.
Pops & Drops
Pops - Goodyear Tire (GT) traded up 8%.
Colgate-Palmolive (CL) traded up 1%
Avon Products (AVP) traded up 4% on strong profits from emerging market strength. Finerman favors Estee Lauder (EL).
Sohu.com (SOHU) traded up 8% on a 47% rise in profits.
Yum! Brands (YUM) traded up 3% on no news.
AGCO (AG) popped 9%
Sepracor (SEPR) exploded up 16%
Drops- US Steel (X) fell 7% after reporting a 35% drop in profits.
WellCare Health Plans (WCG) plunged 33%
Sirius Satellite Radio (SIRI) dropped 9%
Final Trade
Macke suggests buying the pullback in Yahoo! (YHOO). He currently owns YHOO.
Adami recommends Dell.
Finerman says buy Cadbury Schweppes (CSG) for a Halloween candy trade.
Najarian favors Dick's Sporting Goods (DKS).

Labels: AAPL, ATVI, CNBC, Crude Oil, DELL, Fast Money, Fast Money Recap, GOOG, HPQ, MSFT, USO, VZ, XOM

Cramer began Tuesday's show by talking about investing opportunities in Brazil. Cramer believes that Brazil is a good place to invest because it will profit from lowered interest rates in the US and improving investment conditions. His top Brazil play is Banco Bradesco (BBD). Cramer had recommended this stock earlier this year, and then told people to switch into Banco Itau (ITU). Now he wants you to go back to Bradesco because it is cheaper and has better growth prospects.
Southern Copper (PCU): Cramer took a call asking if PCU would react to the falling dollar, and Cramer said not to worry about the US economy much when investing in Brazil. Next Cramer talked about an FCC ruling that is expected tomorrow which will eliminate agreements between cable companies and apartment owners. Cramer also thinks that Corning (GLW) will profit from the removal of these contracts, since Verizon (VZ) and AT&T (T) will move into apartments, and they will need to lay fiber to do so. Cramer also thinks that the company is too cheap considering its growth rate.
Noah Education (NED): This stock stumped Cramer yesterday, and since he thinks the Chinese education market is growing and he is bullish on the stock. He also mentioned that now is the chance to buy more dry bulk shipping stocks.
Cramer returned from the lightning round talking about a $64 per share bid that Kirk Kerkorian made for Tesoro (TSO). He thinks you can profit from some pin action from this offer by looking at other refiners. His recommendation is Marathon Oil (MRO), which would go up 18% if it was given the same valuation as Tesoro. Cramer thinks that refiners have bottomed, and that Marathon has given investors a good entry point, along with exposure to markets with better margins and the fact that they do some exploration as well.
Cramer then read an email thanking him for his stock picks and answered a question about merger arbitrage.
Sudden Death. Cramer is bearish on Palm (PALM) and Coach (COH), and he is bullish on Diana Shipping (DSX) along with other dry bulk shippers.

Labels: ATT. T, BBD, GLW, iTunes, Jim Cramer, Mad Money, Mad MOney Recap, PCU, VZ

Donald Trump wanted Jim Cramer to compete on The Apprentice's upcoming celebrity edition, however he'll apparently have to settle for CNBC's Mad Money host joining him in the boardroom instead.
Cramer will take an Apprentice boardroom seat alongside Trump and his daughter Ivanka during the NBC reality competition's upcoming celebrity installment, Broadcasting & Cable reported Monday. While Cramer's boardroom gig is currently slated to last just one episode, the Mad Money host says he would welcome the opportunity to participate in more of the currently-filming seventh The Appentice edition's boardroom grillings.

Labels: Celebrity Apprentice, Jim Cramer, Mad Money

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Dollar Financial (NasdaqGS:DLLR - News) also beat earnings, with $0.52 EPS over a consensus of $0.48 EPS. DLLR's PowerRating (for Traders) is 5.
Watts (NYSE:WTS - News) also performed better than analysts expected, announcing $0.58 EPS over a consensus of $0.57 EPS. WTS's PowerRating (for Traders) is 4.
Chipotle Mexican Grill (NYSE:CMG - News) beat earnings on Tuesday afternoon, announcing $0.62 EPS over an expected $0.53 EPS. CMG's PowerRating (for Traders) is 3.
Alcatel-Lucent (NYSE:ALU - News) reports earnings on Wednesday before the bell, with analsyts looking for $0.04 EPS. ALU's PowerRating (for Traders) is 4.
Brinks (NYSE:BCO - News) is expected to report $0.66 EPS on Wednesday morning before the market opens. BCO's PowerRating (for Traders) is 4.
Mastercard (NYSE:MA - News) should announce $1.42 EPS before the bell on Wednesday morning. MA's PowerRating (for Traders) is 5.
Analysts will be watching for Weyerhaeuser (NYSE:WY - News) to announce $0.50 EPS tomorrow morning. WY's PowerRating (for Traders) is 3.

Labels: ALU, BCO, CMG, DLLR, MA, Stocks to Watch, WTS, WY

Sirius Satellite Radio Inc. narrowed its loss in the third quarter as it continued to add subscribers and said it still hopes to close its deal to combine with XM Satellite Radio Holdings Inc. by the end of the year.

The New York-based company lost $120.1 million, or 8 cents per share, in the three months ended Sept. 30, compared with a loss of $162.9 million, or 12 cents per share, in the same period a year ago.
The loss was in line with the forecasts of analysts polled by Thomson Financial. Sirius' shares fell 13 cents to $3.48 Tuesday.
Revenues rose 45 percent to $241.8 million from $167 million a year ago but fell slightly short of Wall Street's expectations of $244.3 million.

Labels: SIRI, Sirius Satellite Radio Inc.

Erin Burnett started today's show with Steve Leisman, speaking of fed rate cut probability, sighting the Wall Street Journal as a source for saying "not a done deal." Portfolio plays were next. Gregory Church says he does not believe there is a "best bet" to beat the fed rate cut possibility. Fearing recession, most correspondents say, Genentech, and Johnson & Johnson are the best bets. Next, was Bob O'Brien from WSJ discussing CEO switching with companies, and the reflection on their stocks. After Nardelli left Home Depot, stock went down 20%. Walt Disney after Ovitz left worked up 54%, and Morgan Stanley stock after Parcell left, is up over 60%. Next topic was Canadian oil with Amir Arif. He says if crude oil drops to $76, companies will see an increase of about 25%. He also added that PetroCanada, Nexen, and Talisman Energy will all see an upgrade in the year to come. Darren Ravell was next, interviewing David Stern. As the NBA begins its 67th season tonight, the commissioner discusses gambling amongst referees, as well as an increase in the global market for the NBA. Sponsorship is up. David mentioned that he believed ratings would be up, and attributed that in measure of consumption. League pass, NBA wireless, ticket sales and propaganda will all be faces of consumption, and rating measurement. He says, despite a "tough" off-season, he foretells, with confidence, this season as being a success and reflection of the history and attitude of the league. The Scandinavian airlines ground their fleet of 27 bombardier q400 planes after crash. Peter GreenBurg says it is due to landing gear failures. Dash 8 landing gears are being investigated for proper inspection. AAR, Continental airlines, Horizon Air (Alaskan Airlines) and Frontier Airlines are all companies that use these sorts of Dash 8 aircraft. John Arnone from Bombardier was next, saying their Q400 landing gear manufacturers; Goodrich, is solid with assurance that their products are "of high quality and closely inspected." Jim Cramer with Stop Trading was up next. Jim says stay away from Goodrich right now. He says buy BE Aerospace and adds; to get out of P&G, and buy Colgate. He also loves Latin America. Shutterfly was the next topic. The digital internet photo company, has seen a great increase in sales, as a result of the wildfires across the country. HP, Yahoo and Kodak now have online galleries for personal photography use. Street Signs ended on a positive note, sighting Elvis Presley earning $49 million this past year. Well ahead of Albert Einstein with $18 million.

Labels: CNBC, Erin Burnett, FED, Jim Cramer, Jim Cramer's Stop Trading, Street Signs, street signs recap

Exchange operator NYSE Euronext and BIDS Holdings LP, a broker-dealer and operator of a trading system, said Tuesday they plan a joint venture to improve execution quality and access to liquidity in block trading.
The joint venture will be open to all New York Stock Exchange members and accessible through BIDS trading platform. BIDS will also become a NYSE member. The joint venture will operate as a facility of the NYSE.
"We welcome this partnership with NYSE Euronext and expect that the joint venture will address the current inefficiencies in block trading such as market fragmentation," Tim Mahoney, chief executive of BIDS' trading platform, said in a statement.

Labels: BIDS Holdings, NYSE Euronext Inc., NYX

Stocks open low this morning as a result of lack of consumer confidence in fed rates. Leaders today are Boeing, Gm, American Express, and Merk. Don Bennet from Bennet Group Financial says Stan O'Neil is out as Merrill Lynch CEO. Michael Mayo elaborates with expectations for Merrill to do well in 4th quarter. Merrill Lynch to evaluate CEO candidates, inside and outside of company. Stan O'Neil will walk away from Merrill with $160 million in restricted stock and options, given he never had an employment contract with the company. Laurence Fink of BlackRock Co. is recognized as the possible replacement CEO of Merrill. Oil back down from record high to 91.84. Concern is still present, however, that crude oil prices will reach $100/barrel. Daniel Yergin, a global energy analyst, says prices are driven more by speculative interest, as well as concerns with Iran and Iraq. Smith & Wesson shares plummet as slow hunting market hits FYQT. Michael Thompson from Thomson Financial says over 40% of Financials have missed expectations this quarter, and also that a struggle will ensue to finish flat in 4th quarter. Rick Santelli says the U.S dollar has met all time low today. Angel Mata of Capital Markets says to buy from the best names at the bottom of the market, such as homebuilding, to avoid the lows that the top stocks have been experiencing over the course of 2007. Customizing cars seems to be a big business, say numerous representatives from major car companies. Over 75% of vehicle consumers customize their car/truck. More at behindthewheel.cnbc.comWendy Bounds of Wall Street Journal says angel investors are doing very well. Food and beverage makers and retail stores are the top choices for these wealthy groups. Angel groups have been found backing causes and companies, as well as influencing market shifts to profit and benefit themselves. October consumer confidence drops to two-year low.

Labels: CNBC, Crude Oil, MER, Stanley O'Neal, The Call

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
American International Group Dec 70 Calls (NYSE:AIG - News). AIG's PowerRating (for Traders) is 4.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
ZymoGenetics Nov 12.5 Puts (NasdaqGM:ZGEN - News). ZGEN's PowerRating (for Traders) is 3.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Wynn Resorts Nov 195 Calls (NYSE:WYNN - News). WYNN's PowerRating (for Traders) is 4.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
CME Group Nov 600 Puts (NYSE:CME - News). CME's PowerRating (for Traders) is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Office Depot (NYSE:ODP - News). ODP's PowerRating (for Traders) is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Perot Systems (NYSE:PER - News). PER's PowerRating (for Traders) is 4.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
AmeriCredit (NYSE:ACF - News). ACF's PowerRating (for Traders) is 6.
Published By TradingMarkets.com

Labels: ACF, AIG, CME, ODP, PER, stock options, WYNN, ZGEN

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Intuit (NasdaqGS:INTU - News). INTU's PowerRating (for Traders) is 7.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
National Instruments (NasdaqGS:NATI - News). NATI's PowerRating (for Traders) is 7.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Cummins (NYSE:CMI - News) & NVIDIA (NasdaqGS:NVDA - News). CMI's PowerRating (for Traders) is 7, and NVDA's PowerRating (for Traders) is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
DuPont (NYSE:DD - News). DD's PowerRating (for Traders) is 4.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Cardinal Health (NYSE:CAH - News). CAH's PowerRating (for Traders) is 4.
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Biovail (NYSE:BVF - News). BVF's PowerRating (for Traders) is 2.
Published By TradingMarkets.com

Labels: BVF, CAH, CMI, DD, Hot Stocks, INTU, NATI, NVDA

Fed Cut: Najarian's big question is will the Fed cut 25 or 50 basis points. Finerman is surprised that the market is rallying on the Fed rate cut anticipation. Utilities Select Sector SPDR Fund (XLU) led the stock market higher on Monday. Adami likes Public Service (PEG) into earnings.
Crude oil rose to a record $93.80. Reuters saying that gas prices will now play catch up with crude. Najarian continues to like the oil service sector, with Adami suggesting Tesoro (TSO) as a buying opportunity.
Warren Buffett: Doesn't think China is a bubble; he just thinks the market has run up. Buffett sold his entire stake in PetroChina (PTR) because he made a handsome profit, not because he thinks it won't go higher. The real concern with China is what will happen after the Olympics.
Chartology: Carter Worth joined the show to review the charts of Liz Claiborne (LIZ) and Eastman Kodak (EK). Worth points out that stocks worldwide are rallying but nobody is buying Liz Claiborne. On the other hand, the Eastman Kodak chart displays bullish trends going into earnings.
Earnings Preview: Procter and Gamble (PG) is set to report earnings on Tuesday and Clorox (CLX) will report Wednesday. Najarian reminds investors about Colgate (COL), which he think has more upside then Procter. Exxon Mobil (XOM) is set to report earnings on Thursday before the open.
Stem Cell: Genentech (DNA), Gilead Sciences (GILD), Amgen (AMGN) all reside in Silicon Valley. Scientists are now excited about the potential of stem cell research and California is positioned the best to benefit from the controversial process. Najarian would keep an eye on Myriad Genetics (MYGN) and Cepheid (CPHD) for genetic plays.
Word on the Street
Merrill Lynch (MER) shares rose 2% on hopes that CEO Stan O'Neal is on his way out. Chip stocks rallied after a bullish industry report shows global sales rose 5.9%. Macke still loves Intel (INTC) and is long the stock. Adami mentioned that Goldman Sachs put a $35 price target on Dell (DELL). Kellogg (K) reported strong third quarter profits. Macke is long Safeway (SWY) for a play on the grocery store sector. Options action in Under Armour (UA) perked Najarian's interest on Monday. The options market is looking for a 10% move on Under Armour in either direction. Macke continues to like Nike (NKE). Oracle's (ORCL) $17 bid for BEA Systems (BEAS) expired on Sunday.
Pops & Drops
Pops - Garmin (GRMN) traded up 6%.
American Axle (AXL) traded up 12% on news the firm will extend product lines.
Lehman Brothers (LEH) traded up 4% on news that the investment bank is setting up a $3 billion fund to buy leveraged loans from struggling banks. Goldman S