Yesterday was a one out of two day for us as our Buy Pick of the Day worked out very well for us while our Short Sale of the Day struggled. We got involved with PulteGroup Inc. (PHM) as our Buy of the Day because of the release of existing home sales. The numbers were going to be very large, and it would short-term be bullish for residential construction companies. As a result, we got involved at 10.70, and we exited at 11.04 for a 3% gain. On the flip side, our Short Sale of the Day in Ultrashort Proshares Financials (SKF) was a dud. We got involved right off the bat as I thought the market would increase quickly, but we were too quick buying in at 20.15. We got stopped out for a 3% loss in the afternoon.
We are hoping for a 2/2 day today.
Buy Pick of the Day: DSW Inc. (DSW)
Analysis: The market is facing another tough day, and I keep digging around to find some slippers in the mix. I am hoping that once again today we will have the same success. The market is facing fears again out of Europe, but it is also gearing up for the situation brewing in Korea between North Korea and South Korea. Overall, the world situation is definitely not at its best right now. With a lack of our news to help ease the pain, the futures in the market have dropped to 188 points down on the Dow as of 8:40 AM. The last time, however, that the market went down this greatly in the morning, we saw a nice big jump to start the day before moving back down and stabilizing. The VIX, on the left, shows exactly what I am speaking about, and there is a direct correlation between its rise and the fall in the market. Geopolitical factors are truly having a major role in the market’s effectiveness currently.
The same would be helpful, but I think even with a market that is moving down DSW Inc. (DSW), the shoe closeout retail store, will be able to churn up 2-3% in gains. The company reported some outstanding earnings this morning that are truly amazing. The company reported an EPS of 0.67 vs. the expected 0.49. Those profits were quadruple of what they made one year ago. The company also saw a 16% rise in sales, beating…
