The markets are starting to catch fire after the slow start at the open. Fund managers squeeze in some last-minute buying as the quarter wraps up tomorrow. Let's take a look at what is working and not working so far.
BullishAnalyst Upgrades: Big winners today include SLM Corp ( SLM), TRW Automotive ( TRW), and KB Home ( KBH), all of which saw Wall Street analysts boosting their outlooks. Oil ( USO): Prices are holding gains so far as the Honduras crisis plays out. Potash ( POT): Bouncing back after a tough week last week. Sears Holding ( SHLD): Retailer is getting some of its momentum back today. High-Beta Plays: Intercontinental Exchange ( ICE) and Intuitive Surgical ( ISRG) leading the pack. Goldman Sachs ( GS): Leading the mild rally in the financials. Fuqui International ( FUQI): Breaking out to new 52-week highs. Engineering Plays: Shaw Group ( SGR) and Fluor ( FLR) are seeing good action early.
BearishChina-Based Beta Plays: Changeyou.com ( CYOU), Shanda Interactive ( SNDA), Perfect World ( PWRD), and Netease.com ( NTES) are all pulling sharply today. Citigroup ( C): Struggling to hold the $3 level. Biogen Idec ( BIIB): Shares are nearly 7% lower after company reported 10th case of PLM Brain infection. Watson Wyatt Worldwide, Inc. ( WW): Shares are down nearly 8% following merger announcement with Towers Perrin. I would keep an eye on today's winners and be very nimble if you decide to play the buy high/sell higher game today. I think there are profits to be had looking at the recent 52-week high list for that. We have highlighted plenty of well-performing plays in this past weekend's posts. Oil ( USO) is a big mover to the upside after news of the Honduras uprising this weekend rattled energy prices. Gold ( GLD) is pulling back a touch this morning, not seeing any effect. Treasuries ( TLT) are trading slightly off earlier highs in the session. If anyone was still holding Shanda Interactive from last week's call, your stops should have been hit this morning as the stock pulled back.
My advice to avoid the short side these last few trading days has been the right call as we still are not seeing much of a let-up as far as June quarter-end fund buying goes. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.