The market has been unable to take advantage of another series of analyst upgrades this morning. Let's take a look at what traders should be keeping an eye on.
Ultrashorts: I am a little bit surprised at how well the SRS, SKF, and DUG plays are performing so far today. It may make sense to prepare to take a "taste" on the long side once again if someone wants to try a quick intraday Friday move here.
Transports: Mild gains in the sector with FedEx (FDX) a key name to watch here.Treasuries (TLT): Appears to be another week of gains for bonds as the "flight to safety" trade continues.
BearishExchange Plays: Intercontinental Exchange (ICE) and CME Group (CME) are near the lows of the week. Earnings Losers: Shaw Group (SGR) and Chevron (CVX) are lower after last night's reports. Oil (USO): No help from the news on Chevron, as other big names are going lower. BP plc (BP) and Exxon Mobil (XOM) are also caught up in the downdraft. Financials: JP Morgan Chase (JPM), Bank of America (BAC) and State Street (STT) are taking a hit so far. Commodity Plays: Wakness has resumed for shares of Potash (POT), U.S. Steel (X), and Monsanto (MON).
SummaryUnless things turn around this afternoon, it looks like the market will be going into the start of earnings season on a down note. I am waiting to see what trades pop up, but the bias right now has to remain on the short side, unless we get a tremendous oversold situation. The exchange plays mentioned above may be headed in that direction, but are not there yet. I would prefer to see a close or two off the bottom.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV