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.
brings you the news all day, and with
"Columnist Conversation," you can see how the pros are playing it on a real-time basis. Here are the top five ideas played today. To see all that
for a free trial.
1. Morning Prep
By Ken Wolff
8:42 a.m. EST
is trading up slightly after a day in which we looked weak early, then popped unexpectedly and ended with neutral momentum. ... Usually a gap down will produce early buying, but we saw darn little until we dropped about 50 cents on the QQQQ from the previous day's close. ... We still have an environment where anything can happen at any time. ... I am going to look for selling at the open with more chop but attempt to go long when buyers move in...
2. Retail -- Still Some Opportunities
By Brian Gilmartin
Some segments of retail have been pounded pretty thoroughly over the last few months (like department stores), so we do think there is some opportunity here.
The first name we've been nibbling at the last week is
-- they've blown the cover off the ball this year, and we've been waiting for an opportunity for the stock to get oversold on the daily chart, and now it is, even though earnings and revenue estimates tick higher. KSS is taking lasting market share from defunct competitors.
The second name, also oversold and a bit more higher-risk, is
. A victim of the trade-down effect over the last year, WFMI comps will likely turn positive in early 2010, and the company is generating free-cash-flow once again.
got an earnings bump and positive comments from Credit Suisse this morning, though the analyst took his current year estimate up to consensus at $2.95. BBY reports next week. Sell BBY if it falls below $41 on volume.
Position: Using this weakness to add to KSS, WFMI. Long BBY, KSS, WFMI
By Tim Melvin
12:14 p.m. EST
On housing, see the comments of Laurie Goodman of Amherst before the House Financial Services Committee yesterday. If her numbers are even close to correct, there is still a lot of pressure on housing prices ahead. They estimate that 7 million homeowners will have to either do a distressed sale or go into foreclosure. That is a staggering number. There is not enough demand, nor do they think such demand can be stimulated, to soak up that much supply.
Combined with what we are seeing in CRE, this huge negative for small to medium-size banks. I want to be heavily invested in that sector but just cannot until we get more clarity on the real supply demand picture in housing.
4. Gap Getting Hit
By Gary Morrow
is off 2.5% this morning. The early selloff has pushed the stock below its November and October lows, taking out trendline support in the process. This is the third day of low-volume losses for Gap following last week's November sales numbers. On Friday, the stock managed to finish the day on the upside, but the heavy volume was unable to lift the stock back above short-term resistance near $22.00. This resistance area is bound by the stock's 50-day moving average, which began to roll over three weeks ago. The losses this week, now just shy of 5%, appear to have more to go.
The $21.25 area, which includes the November and early October lows, will offer quite a bit of resistance over the near term. A low-volume rally back up to this area would be a low-risk shorting opportunity. A tight stop could be placed just above $22.00. On the downside, I expect Gap to test support near $20.00 by year-end. Major support is further below at $18.50. This is the area of the summer highs.
5. Nike Is Just Not Doing It
By Dan Fitzpatrick
is taking a big hit today, falling out of a volatility squeeze. Tough to know whether it's totally related to Tiger the Cheetah (last time I checked, Nike was more than golf), but the downside volume has been pretty heavy for the past couple of days.
At some point, this'll be a solid buying opportunity (I'll feature it in tomorrow's Fitz Bits article).
This article was written by a staff member of RealMoney.com.