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Powerful Breakout for Colgate
By Gary Morrow
2:20 p.m. EDT
is building on Friday's strong move with a 4% ramp. The stock finished off last week with a high-volume 3% surge that pushed the stock above its 200-day moving average for the first time since the October collapse.
Colgate is now trading just shy of its 2009 high of $69.70. I expect the stock to be at new highs this week.
Colgate has been on quite a run since bottoming in early March. The stock successfully tested its October lows of $54.35 back on March 9 before turning higher and with today's $2.75 gain, has recovered over half of the heavy loses suffered during the fall of last year.
The bulk of the gains have come during the last four weeks as extremely heavy upside volume returned. This leg of the run has left behind strong support in its wake. While I expect Colgate to easily take out its current 2009 highs, a healthy pullback would strengthen the trend.
I am not in the stock at this point but would be a buyer on a low-volume pullback. First layer of support is the double weekly highs left behind in late January and early February just below $67. Last week's high of $66 is also an area of support.
Credit Cards Missing Out
By Alan Farley
12:31 p.m. EDT
are missing out on the first-of-month rally. The stocks are under pressure, with credit card reform legislation threatening to lower profits. In addition, there had been persistent rumors that one or both of these issues would be added to the Dow 30. That didn't happen, with
getting the nod instead.
However, both issues have been fairly resilient, despite adverse news, so there's still a chance they'll move higher. Visa is the stronger play, filling out a broad triangle pattern, with resistance near 68. A breakout over that level could trigger a rally up to 77.
Oil and Bonds
By Tim Melvin
11:55 a.m. EDT
I may have missed part of the stock rally in recent weeks, but some of my small long-term speculations are more than offsetting the pain. It is no secret that I never believed in this rally and still do not.
The market of course does not give a fig what I think and has staged one of the most impressive rallies in history. I would be more upset if I had not established small options bets early this year shorting treasuries and long oil. They are providing the type of asymmetrical payoff that more than compensates for my relatively light equity position.
These positions just made sense to me when I put them on and wrote about them earlier this year. The Saudi oil minister stated that he thought $75 was a fair price for oil. I think he will get his way by the end of the year and I will hold my
U.S. Oil Fund
calls until the January expiration.
In my mind, it is going to be impossible for bond prices to stay high in face of the massive issuance that will be needed this year. I do not think the selloff is done and will likewise hold my
iShares Barclays 20+ Treasury Bond
puts until expiration.
On counter-trend moves in either I will be willing to add a little to the positions.
Long USO calls; long TLT puts.
By Adam Feuerstein
10:23 a.m. EDT
seems like the big winner so far, the only ASCO stock up significantly this morning. Also in the green but not much are
doing a bit better, although I hear the Celdex spike may be on a rumor of a
report coming soon.
On the down side, there's
(the hottest pre-ASCO stock),
Airlines and Crude
By Bob Byrne
11:11 a.m. EDT
On Friday I posted that I was shorting crude and getting long airlines. I am taking off one-third of my airline long into today's ramp --
. I continue to hold
UltraShort DJ-AIG Crude Oil ProShares
, but it's more of a hedge against a basket of small energy longs than an actual bearish position on crude itself.
Long AMR, UAL, US Airways and SCO.
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This article was written by a staff member of RealMoney.com.