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1. Big Squeeze Coming on JPMorgan Chase?
By Alan Farley
7:27 a.m. EDT
, a long-side pick in my TSC newsletter,
, may be setting up for a major short squeeze. The stock has carved out a bearish descending triangle in the last three weeks, with the falling highs trend line sitting right around $36.50.
The stock is trading above that level this morning, putting pressure on the logical stops placed by short-sellers. This can be an incendiary setup, in which a stock "melts-up" as stops are hit and shorts cover in panic.
2. One Thing to Consider About Facet
By Sham Gad
10:11 a.m. EDT
shows a negative EV of some $88 million (stock price is $9.50, cash per share is $14, no debt), the company does have lease obligations over the next five years that effectively equal the $288 million in cash on the balance sheet today.
I still think the stock is very cheap, and the company plans to have at least one phase III drug by next year. Within five years, the company is set to recieve several milestone payments, so the balance sheeet is cash rich, but don't expect a special payment or anything.
3. Oil Rally
By Christopher Grey
11:12 a.m. EDT
When oil was in the $30s earlier this year, I was a raging bull, but the oil rally seems extended and long in the tooth now. It seems driven mostly by dollar weakness and hope of future demand rather than oil fundamentals.
I have closed out another profitable trade in
Ultra Real Estate Proshares
and taken a long trade position in
ProShares UltraShort Oil and Gas
in expectation of a correction in that sector. I would be interested to hear opposing viewpoints about oil and oil stocks.
4. Oil Rally
By Helene Meisler
1:04 p.m. EDT
In my newsletter last night I showed this chart of the
U.S. Oil Fund
with the downtrend line that comes in just about here. I would say the lovefest for oil and the chart both say to take some profits.
5. More on Gold
By Gary Morrow
1:54 p.m. EDT
of surging gold stocks, up over 4% today on heavy trade after opening the session with a powerful gap higher open.
The stock is now trading at new highs for the year while leaving behind a solid five-month base. After running out of steam in late January just below the $60.00 area, Agnico-Eagle began a healthy consolidation. In the six weeks prior to the Jan. 26 top, the stock had rallied over 100% and was way overdue for a rest. The pullback was contained on the lower end by the $45.00 area and the $60.00 area on the upper end. The action during this consolidation was near textbook, setting the stage for this week's powerful breakout.
Support is now in place just below the $60.00 area. This includes the January highs of $59.20, March highs of $58.90 and last week's top of $58.80. A re-test of this trendline support would be a low risk buying opportunity. The initial upside target is the September highs of $67.40. I would expect this area to offer some resistance.
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This article was written by a staff member of RealMoney.com.