A quick spotlight on some of today’s compelling plays & market observations.
Market movements
Martha Stewart Omnimedia (MSO) breaking major $4 support. Stock has been falling faster than a souffle from a $7 high set last May. Open interest in the Feb 5 & Mar 5 puts.
AdvisorShares debuting a new actively managed etf, Active Bear (HDGE), consisting of short stocks and ETFs. Fund’s goal is inverse correlation to the market, making it an alternative portfolio hedging tool (to say the VXX or the VXZ). Its expense ratio is 1.85% making it the most expensive US listed ETF according to Michael Johnston’s recent SA article. The stock is trading just under $25; over 200k shares have already been traded today.
Housing may be down but housing related stocks are up. Check out the iShares Real Estate (IYR) etf which today broke $58 resistance to hit a new high. Volume in the March 56-60 calls also picking up. Funds top 4 holdings: SPG, VNO, EQR, PSA. Dividend yield 3.4%.
Cramer’s Take: The Big Booyah yesterday predicting a secondary offering for SunTrust Bank (STI). He says that bank secondaries have been very profitable, low risk plays as the banks shows a return to profitability with the means to begin repaying the TARP monies. Sounds good to me and I’ll keep my readers posted when (and if) that secondary is announced.
Change of Pace: Looking for a different perspective on US markets and politics? Check out CNBC Worldwide (listed as channel CNBCW). It’s a refreshing change from the highly polished US program format where everyone has the same world view. Did you know that many Europeans think Obama is a wuss in regards to foreign policy?
So, if you still can’t find anything to watch on your 500+ channels late at night, try giving CNBCW a shot. I’d like to hear what you think, and no, this is not a paid announcement. Unfortunately
For a technical snapshot of today’s market action including low-priced leaders and leading speculative stocks, please check out our *Blue Plate Specials*, a part of our subscriber content. In addition, you’ll get an extensive database of channeling stocks and companies that have compelling upward earnings revisions plus detailed strategies on how to use them–all for less than the price of a cup of coffee!