Top Takes From RealMoneyHere's what some of our market pros are saying and playing.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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Natural Gas Power
By Gary Morrow
3:14 p.m. EDT
National Fuel Gas
is one of the top dollar gainers on the NYSE today. The stock is up 12% on very heavy trade following yesterday's third-quarter earnings report. The company also raised its guidance for the remainder of the year.
Investors are responding in a very bullish way, bidding the stock up $5. This surge has pushed NFG to new highs for the year and above last October's high. The big ramp today extends a powerful run NFG began on July 15 with a high-volume breakout.
In early July the stock faded a bit after finishing off June near the month's highs. A very low-volume pullback dropped the stock down to support at its 50-day moving average. NFG held this support, much like it did in April and May, and quickly turned higher.
Once the stock took out the June highs, volume began to accelerate confirming the breakout. With the addition of today's gains NFG is now up 30% in a month.
I expect more upside for the stock before it runs into heavy resistance near $50. Strong support is in place near $41, but I doubt that level will be tested before the push to $50. It's likely the stock forms a new base above that area, possibly as high as $45.
By Tim Melvin
1:52 p.m. EDT
Jim Cramer mentions in one his articles today that low-price stocks are flying. This set me to wondering how the Templeton trade first mentioned in October of last year is doing.
Following the example set by Sir John in the famous story, the trade would simply buy any
listed stock trading under three dollars and then hold for a few years. I put these into a tracking portfolio and checked to see how it was working out. To say it has worked well is an understatement.
Initially the trade showed steep losses but has risen sharply since March along with the market. As of today the trade is up 147% since October. Many of the stocks have doubled and tripled. Five of them are already 10 baggers.
Speculative excess indeed.
By Howard Simons
1:34 p.m. EDT
Prior to today, better economic news led to dollar weakness as investors took advantage of low borrowing costs to fuel carry trades.
Today's move signals a risk forming for the dollar carry trade. The prospect of a sooner-than-expected increase in short-term interest rates will increase the cost of the dollar carry trade and will put a bid under the dollar.
A stronger dollar, in turn, has the odd effect of lowering the prospective return on U.S. Treasuries for foreign investors and will keep rates at the long end of the yield curve higher than they would be otherwise. If the dollar stabilization continues, foreign equities will be relatively less attractive than they have been, too.
These cross-currents illustrate why we should reject simple explanations for market movements. Anyone who came into today thinking good news would lead to a continued selloff in the dollar would have been disabused of that notion quickly.
By Jim Cramer
1:21 p.m. EDT
move is very important as this is a company that, like
, has been continually attacked as something that could be hurt by the government's action. The higher it gets, the less likely the scrutiny will be....
By William Furber
1:17 p.m. EDT
As I mentioned in prior posts, we have (after being quite a bit early, at least in terms of price) traded around and averaged down to increase the size of positions in
( UAUA) and
. We have lightened up and are back to around the size of our original positions.
Long UAL and Continental.
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This article was written by a staff member of RealMoney.com.