Top Takes From RealMoney
The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.
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Morning Prep
By Ken Wolff
06/05/09 8:41 a.m.
The
PowerShares QQQ
(QQQQ)
is up after better-than-expected jobs numbers. The market was relatively strong yesterday with a rather narrow range of 40 cents. If the consumer confidence rally is any indication, we can move up big today -- the QQQQ hitting $38.50. ... I am going to expect some selling at the open, but be prepared to enter early if and when the bulls take the market by the horns. We should see leadership with
Apple
(AAPL) - Get Report
,
(GOOG) - Get Report
and
Goldman Sachs
(GS) - Get Report
...
Rio Tinto
(RTP) - Get Report
is up big on a very nice recovery continuation!
No positions
Unemployment: Good News, but I Don't Get It
By Frank Curzio
06/05/09 9:04 a.m.
I'm scratching my head at this 345,000 number. Out of 75 economists polled by
Bloomberg
, the lowest estimate was 450,000, with the median at 520,000. Weekly claims and ADP data suggested 450,000-550,000, and Ben Bernanke told us two days ago that unemployment picture is likely to worsen over the next few months.
Don't get me wrong -- enjoying the nice pop in the futures, but economists need to find a better way to forecast.
What to Notice in Bonds Post Number
By Tom Graff
06/05/09 9:55 a.m.
Huge
flattener today, two-year up 23 basis points, 10-yr up 6, and 30-year
down
2. What does it mean?
A bear flattener always means Fed hikes
, or at least that's what the market thinks.
I'd argue that a 25 basis point move in the two-year means the market now expects a 25 basis point hike in Fed Funds within the next 12-months.
Ironically, I've added to my long-bond exposure this morning. If the Fed does hike, it will calm the dollar fear, which is the real reason why the long-end has sold off so much.
Saturn Sale
By Tim Melvin
06/05/09 11:36 a.m.
I am intrigued by the possibility of
Penske Automotive Group
(PAG) - Get Report
buying Saturn. Penske has held up better than most publicly trader auto dealerships. Roger Penske has been in the car business for a long time and has forgotten more about making and selling automobiles than most people will ever know. His deep contacts in the racing world set up some interesting scenarios for Saturn, including running a Saturn in Nascar someday.
Penske Automotive has felt the pinch of the recession but has managed to stay profitable throughout the recession. They have bought back debt in the marketplace and done a great job of managing inventories as well as the balance sheet. In the hands of a good businessman who is also a dedicated "car guy," Saturn could be wildly successful.
No positions
Oppenheimer Bump Jolts Jackson Hewitt
By Gary Morrow
06/05/09
Oppenheimer raised tax service provider
Jackson Hewitt
(JTX)
to outperform this morning. The stock is responding extremely well to the news with a
NYSE
-leading gain of 40%. Volume on the ramp is spiking and is already the heaviest volume day of the year.
Jackson Hewitt began the day with a powerful gap higher open and within the first 45 minutes had taken out heavy resistance near its April highs. The stock is now trading well above a 12-week basing pattern it had been tracing out since putting in four consecutive weekly lows in March.
Strong support is now in place between $5.25 and $5.75. This is the area of the upper trendline that connects the previous recovery highs in late March and April. A low-volume pullback to this support zone would be a low-risk buying opportunity. It would be quite a run, but a logical upside target would be the area of the September lows just below $10.00. The stock's declining 200-day moving average will be in this area as well in another few weeks.
No positions
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This article was written by a staff member of RealMoney.com.
