Wednesday, June 30, 2010

Waddling Wednesday

Dow Jones 9,774.02 -96.28 -0.98%
NASDAQ 2,109.24 -25.94 -1.21%
S&P 500 1,030.71 -10.53 -1.01%

It's becoming a habit, this getting up with an hour left in the market. I was up by 9:15 am Hawaii time, early enough to see AAPL trade at 253.33, down a few bucks from yesterday's lower close. I rubbed the makapiapia out of my eyes and AAPL was at 252. A few minutes later, shares dropped below 251 and set to plunge below 250.

That's where it held ground, at 250.01, and closed at 251.46, down 1.84%. Never mind the repeated rumor about Apple and Verizon coming to terms on a deal for iPhone 4; the stock has tanked since hitting 279 little more than a week ago. From a short-term low of 242 to 279 in one week was drastic, and now AAPL fades despite good news. It had to sell off on the release of the new iPhone, but market forces are always too strong, even for Apple.

There just aren't enough buyers out there. There just aren't enough reasons to go long here. The recovery has slowed, China is continuing to hit the brakes and people are on vacation. That makes it a playground for the high-frequency traders and their robots.

GOOG dropped 2.05% to 444.95 and is looking more attractive than ever. But I continue to wait. The Apple-Verizon partnership could hamper Google's Droid X campaign. Two winners are definitely possible in the future world of mobile communications and advertising.

Apparently, Google hasn't given up on China yet. Until there's something firm between the Googsters and the People's Republic, though, it's superficial.

Baidu finished up 0.75% to 68.08, a nice surprise despite falling off an intraday high of 70.35.

FXI lost 0.46% to 39.13 while Freeport-McMoran (FCX) dropped 3.18% to 59.13. US Steel (X) fell 1.43% to 38.55 and Posco (PKX) lowered to 94.32 (-0.55%).

PetroChina (109.73 -0.71%) dipped again, but CNOOC was up (170.17 +0.81%).

Solars Yingli Green Energy (10.18 +3.04%) and Trina Solar (17.28 +0.12%) also bucked the general trend.

US Oil Fund ETF (USO) slid 0.61% to 33.96 and natural gas plays petered out in response. My list of 40 natty gassers dropped 0.83%. Interestingly, Westport Innovations (WPRT), my favorite, gained 1.88% to 15.69. UNG picked up 1.04% to 7.75 and REXX climbed 2.75% to 10.10.

In accordance with crude oil, FSLR dipped 0.52% to 113.83.

In a related clean energy play, Tesla ran wild on its second day of trading only to falter at the finish. TSLA closed at 23.89 on Tuesday, opened at 25.96 today and reached 30.42 before selling off. Shares closed at 23.83 (-0.25%) on volume of 17.1 million shares.

FXE gained moderately (0.26%) to 121.87 despite unrest in Greece and more troubles for Spain. Merkel's candidate's victory was good, apparently, for the Euro.

Banco Santander handled the negative news from Moody's well, gaining 2.04% to 10.50. IRE lost 2.37% to 3.29 as austerity measures in Ireland continue to wreak havoc. NBG dropped 2.69% to 2.17, nearing a one-year low.

GLD (121.68 +0.34%) and SLV (18.21 +0.44%) were nice trades today, as was TLT (101.75 +0.67%).

ETNs continued to provide shelter to beleaguered longs. FAZ gained big again, adding 3.57% to 17.42. TYP rose 5.48% as tech stocks dipped. BGZ (18.25 +3.22%) and TZA (8.18 +3.41%) were also big winners.

VXX gained 1.33% to 31.20, but didn't exactly trade up while AAPL declined — an unusual lack of coupling that I've seen only twice in the spring and summer. It probably says more about the level of familiarity the general market has with this level of volatility. It's enough to shake out weak longs and conservative traders, but not enough to be truly defined as a panic. Plus, volume is so light. For AAPL to make a higher percentage move than VXX says it all. VXX may have topped near term.

QID (UltraShort QQQ ProShares) did much better, gaining 3.13% to 20.04.

Shares of CBOE gained 2.49% to 32.55.

DNDN continued its crash, falling 3.75% to 32.33, then losing another 15.47% to 27.33 in afterhours trading. It may be another bear raid on Dendreon shares.

The Centers for Medicare and Medicaid Services posted this online and is seeking public input on the effects of Dendreon's prostate cancer treatment. It seems to be a routine CMS procedure, but shares are tanking nonetheless.

If it's another bear raid without substantial facts and news, this could be another buying opportunity. But I'm staying out and I remain 100% cash in this circus of a market. The elephants are on the loose and I'm staying way up in the bleacher seats.

No comments: