Well, we had an interesting week to say the least with our selections. We had some definite winners and losers, but we ended up better than worse. The week was mostly poor as the market dropped just under 5%. Friday, however, the market began its movement up, and there is some buzz that the market might be bottoming for the short term. Some decent news came out over the week as housing starts were seen rising for the month of April, prices of goods are staying stable, and earnings continue to be pretty strong across the board. Yet, the market is facing some tough news out of the job market as unemployment claims continue to rise, there are scary rumors of future deflation, and crude inventories continue to rise, which should decrease the price of oil but shows an overall lack of demand throughout the States.
The big news of the week was the Euro and the stability of Europe. Next week’s success will definitely be linked to signs that some measure of bringing stability to the region has been established. Additionally, this week, the market will get some big news from the real estate market on existing home sales on Monday and new home sales on Wednesday. Durable goods orders will be reported on Wednesday, as well. Thursday will be the reporting of GDP and jobless claims, and finally, on Friday, personal spending and the Michigan Consumer Index will be reported.
The Oxen Report had some definite winners and losers and nuetral plays:
Winners:
Aeropostale Inc. (ARO) – Aeropostale was our Play of the Week that I sent out on Monday through an Oxen Alert, and it was good for a nice 4.5% gain for us. We got involved on Monday at a price of 28.00 and liked the stock for the fact that the stock was undervalued but looked suited for a rise based on what was expected to be record profits. The company delivered on Friday, and we were finally able to exit the stock after an up and down week for a solid 4.5% gain at 29.26.
MF Global Inc. (MF) – MF was a great Short Sale we made on Thursday. The company had some detrimental earnings reported on Thursday morning with another quarterly loss. Further, the derivative clearinghouse said they would cut another 10-15% of their workforce on top of cuts that had already been made. The stock bounced up in…
