TGIF! Its been a tough week for us here at The Oxen Report, but there is some light at the end of the tunnel. We were able to neutralize the losses that we are going to incur with our Play of the Week in National Semiconductor with a Buy Pick to Overnight Trade in Lululemon (LULU). NSM is expected to open down around 6.5% while Lululemon is expected to open 7.5% higher. I am going to exit both right out of the gates. Additionally, yesterday, we got involved with a new Medium Term Short Sale in Lennar Corp. (LEN). We got involved at 14.54, and the stock looks to open up about 1%. I am not too worried here because I like this one over an extended period to lose value.
This morning the market is looking like its poised to open a bit higher, but it is once again on basically nothing. My initial thoughts are that we are going to open a bit higher and pop a bit but dwindle throughout the day. Most of this will depend on the wholesale inventories report at 10 AM.
So what I have are two plays that we can line up for after the report. If it is good, then we can pick up a Buy. If it is bad, we will go a short route…
Buy Pick of the Day: Dr. Pepper Snapple Group (DPS)
Analysis: If wholesale inventories come out strong, then the market rally should at least for some time after the report continue upwards. I do not see a huge rally coming within the first thirty minutes. There is really nothing to go on for that to happen. A small gain or loss would not surprise me. One stock, though, that could be helped by a market lift would be Dr. Pepper Snapple (DPS). The company got hit in the face Wednesday and yesterday after a comment made by the 
company’s CEO that he was not happy with where the consumer is at in terms of spending.
Since that comment and an FDA warning about wording on a Snapple Green Tea bottle, the stock has dropped just under 8% and has gone from being above its upper bollinger band all the way down to trading below its lower bollinger band. The stock is poised to open another 1.5% – 2% lower today. This huge drop, though, should be a bottom for the…
