Wednesday, June 16, 2010

Horrid opening for Nat Gas

No surprise here that Nat Gas is selling off as a sector after HUGE gains in the past 12 sessions since Obama's clean energy speech. My list of 40 has only one natty gasser in the green: HGT (21.77 +0.83%). The rest are in the red as traders take their profits rather than hang on in a negative market so far.

Here's my little theory: Goldman Sachs propped up the market to get its CBOE IPO off the ground yesterday, launching it way, way up. Now that CBOE's launch is done, GS is getting out of a number of stocks, including those in the Nat Gas industry. Right on cue, with so little conviction (volume) in the market on Monday and Tuesday, it's not taking very much selling to see stocks tumble. (This isn't any claim to a perfect theory; GS has a total of four IPOs this week, so a big, long dump of stocks isn't to its advantage.)

WPRT is down 1.96% to 19.08 after hitting a low of 18.61. CLNE is down 2.72% to 17.67. UNG down 2.27% to 8.63. Overbought conditions all around are hitting this sector as hard as expected.

AAPL, though, is bucking the trend, up 1.15% to 262.67. GOOG is barely positive and NFLX is up 1.24% to 125.10 after yesterday's down action. Netflix is probably benefiting from Coinstar's news. CSTR's Redbox has a new deal with Paramount to issue new releases. With Blockbuster on the verge of bankruptcy, its new-release deal with the industry is pointless and Coinstar picks up the deals now. CSTR is up 3.14% to 54.15, off its high of 54.76. Recent high was 57-plus.

CSTR would make an intriguing catalyst trade on a neutral or bullish day. Not so sure about trying it in this climate.

Just about everything else I'm watching is flat or negative except for a couple of pennies: the aforementioned BBI (0.27 +11.44%) and HAUP (2.51 +3.72%).

Financials are wobbly, as expected. STD is down 2.77% (10.87) and the euro is down 0.36% to 122.62 as Spain issued a challenge to Germany yesterday, asking for stress tests on Euro banks.

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