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.
Third and 9 out of the ShotgunBy Jim Cramer
6:42 a.m. EDT That's Obama's speech tonight on health care. And I don't like third and 9s. I still think the UnitedHealth ( UNH - Get Report)/ Wellpoint ( WLP) trade is a good one. It is only the strengthening economy that makes it look less than it really is. People would rather own United Tech ( UTX - Get Report) and Emerson ( EMR - Get Report)... Positions: Long EMR
Kraft/Cadbury BattleBy Don Dion
6:36 a.m. EDT Look for Warren Buffett to bring sanity to the Kraft ( KFT) hostile bid for Cadbury ( CBY). As Kraft's major shareholder, Buffett should advise Kraft management to walk away after their generous bid was rejected by Cadbury's board. No need to overpay and take on massive debt. If this happens, look for KFT to rally and continue to pay its generous dividend. No positions
Asian Buying of Treasuries OvernightBy Tom Graff
8:42 a.m. EDT The Treasury market was higher during the Asian session; supposedly there was strong buying of the two-to-five-year part of the curve. The 10-year was also up a quarter-point at its peak during the session. But apparently U.S. traders weren't of the same mind. The 10-year quickly gave up its gains after 7 a.m. EDT as U.S. traders arrived at their terminals. We're now down one-eighth from yesterday's close and three-eighths from the overnight high. Today the Treasury will reopen the 10-year with a fresh $20 billion, and tomorrow they'll add $12 billion on to the long bond. Technically, the 10-year looks weak to me, so a weak auction probably has more downside than a strong auction has upside.
Vivus RallyBy Tim Melvin
11:53 a.m. EDTThe rally in Vivus ( VVUS - Get Report) is very familiar. I can recall this stock leaping to the stratosphere back in the '90s, when the company introduced an injection for men with ED. The market was very excited about the potential for the product. Very shortly after the announcement and rally in the stock, Viagra was introduced, and the stock collapsed. The new drug this time is an anti-obesity drug, and the trials are positive, with those using the drug losing more weight than those on placebos. The participants in the trial were morbidly obese. I am not sure how large that marketplace actually is or if the drug works for the less than morbidly overweight. I suspect the drug will not be quite the hit the market is expecting. I certainly would not chase the stock here. No positions
New Highs for SanDiskBy Gary Morrow
2 p.m. EDT SanDisk ( SNDK) is benefiting from a Deutsche Bank bump. Deutsche raised SNDK to buy from hold and lifted its price target to $23 from $16. The good news sparked a powerful gap-higher open that has pushed the stock to new highs for the year. SNDK is now trading above its July peak of $19.00 and is leaving behind very strong support in the process. I expect the current rally, which began last week after a successful test of 50-day moving average support, to carry the stock up to the new DB target of $23. This is the same area of last September highs and will likely offer quite a bit of resistance. Prior to this target being reached, the $18.40 to $19.00 area will provide solid support for the stock. A low-volume pullback to this area would provide a low-risk buying opportunity.