Thursday, June 17, 2010

World Cup Wednesday

Dow Jones 10,434.17 +24.71 +0.24%
NASDAQ 2,307.16 +1.23 +0.05%
S&P 500 1,116.04 +1.43 +0.13%

Anyone like soccer? I have no idea who's going to win the World Cup. It's entertaining to a point, but like those weird kazoo noisemakers that are so popular in South Africa, it will soon pass.

The market was relatively narrow today for the most part. I slept halfway through, strangely not disappointed to see AAPL continue its climb while I watch from the bleachers. Though Apple continues to amaze and I have my doubts about this propped-up market, there are some interesting twists and turns coming as a result of BP's doomsday disaster.

CNOOC (CEO) is a Chinese energy play that I enjoyed watching two, three years ago, but never traded. It remains in a role of little brother to Goliath PetroChina (PTR) in that part of the world known as the Middle Kingdom.

What's interesting about CNOOC now is that it could be in acquisitive mode now that BP is in deep-shit territory. If BP is forced to unload property to raise cash, CNOOC will be ready and willing, according to this story. This is far from breaking news; CEO was at a low of 152 nine days ago and closed today at 173.

Yup, I hear ya. Holy crap.

It's BP's other wells that CNOOC is interested in. It's like breaking up the Yankees, basically. Most major-league teams would be happy to snag A-Rod or Mariano Rivera or Derek Jeter or ... especially at a discount. That makes CEO an interesting watch. I'm not entertaining any notions of buying it here at 173 — already at a 14% gain since June 8. But I'm keeping an eye on it. CEO was listed as a "Buy If" by American Bulls on the candlestick chart reading coming into today's session. With a fractional drop today, CEO is probably still in a near-breakout level.

The market rallied into the close on low volume again, though AAPL had plenty of trading and closed at 271.91 (+1.74%). Shares hit a high of 272.90 early, but dipped below 270 by the end of the first hour of trading. After a rally back near 272, shares fell to 270 before rallying in the final half hour. That kept VXX below 26.00 for the day; it broke above that level briefly before AAPL mounted that late comeback.

Flat, flat, flat. GS up 0.19% to 137.32. C down 0.75% to 3.96. FAZ, the inverse ultra-short ETF, gained just 0.42%.

STD, which fell flat on its face yesterday, gained 2.45% to 11.27 today. Such a nice move lately after dipping below 10 in recent weeks. There's a lot of confidence in Santander despite mediocre jobs numbers in Espanol. Other Euro banks did not so well. IRE fell 0.96% to 4.14 and NBG dropped 0.81% to 2.45.

The euro (FXE) rose 0.71% to 123.49 while the dollar (UUP) slipped 0.60% to 24.95.

GLD gained 1.3% to 121.90 and TLT (20-year Treasurys ETF) picked up 0.81% to 97.85.

AAPL finished up 1.71% to 271.82 and GOOG was flat (500.08 -0.24%). BIDU lost 3.13% to 72.47

NFLX gained 0.91% to 125.80 while CSTR fell 2.32% to 51.29. The momo is gone for CSTR, which rose yesterday on news of a deal with Paramount for early releases of DVDs. CSTR lost almost all its gain intraday yesterday and continues to sell. Below 50 might warrant a closer look.

While BP lost just 0.44% to 31.71, USO (oil ETF) dropped nearly 1% to 35.14, halting a significant run lately.

The Nat Gas sector got hammered for a second day in a row, but gains since Obama's clean energy speech remain massive. UNG bucked the trend and closed at 8.74, a gain of 2.83%. WPRT (18.98 -1.15%) and CLNE (17.28 -1.43%) declined, as did 32 of the 40 on my Natty Gassers list.

WPRT paces that list with a gain of 29.3% in the past two weeks. PQ is up 28.8% and PETD is up 25.1%.

FCX lost 1.82% and FXI dropped 1.17% as copper took a hit. US Steel (X) remained turbulent, losing 2.67% to 44.10. SLV gained nicely (1.38%) to 18.33.

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