Hope everyone had a great weekend. Friday was a good day for The Oxen Report. We were not able to get into SRS, our Buy Pick of the Day, because I had set the entry a bit too low. Some of you were able to play it still as the stock rose over 5% intraday. At the same time, we were able to also get a nice play out of our Short Sale of the Day, Take Two Interactive Inc. (TTWO), which fell on news that the video game industry’s sales were down. The market is a tough read this morning, however. Asian markets are flailing, while Europe is having a slight rebound today. This morning I have one short sale/put for us to think about for trading. Later in the day, I will have a new alert that I am starting called The Daily Musing as well as my Play of the Week, which will also be released as an Oxen Alert.
Let’s analyze the Short Sale for today…
Short Sale of the Day: Ultrashort Proshares Euro (EUO)
Analysis: Monday is always the toughest day for me because of the lack of economic data that is released, lack of earnings reports, and lack of general consensus on where the market is going. Futures are down this morning in pre-market trading. As of 8:33 AM, the Dow was down 34 points. Some of the big news on the day is that Lowe’s beat earnings, but the company missed estimates on outlook (as I commented last week, earnings don’t seem to do it alone anymore…companies need to have outlook as well). There is some small M&A buzz around some pharmaceutical acquisitions, and the Euro hit its lowest point in four years but has rebounded since. Oil is up slightly. That is a lot of varying news without much direction. I wanted to hone on one of these stories for a play for us.
I found that the best play may actually be in the Euro. Today, the Euro hit its four year low…bad. On the flip side, the Euro has moved up from the low of $1.2337. Further, the European markets are starting to improve despite the Euro’s woes, which might be a catalyst to start getting the Euro going again. A stronger dollar is not good for oil or businesses in the USA that do any overseas exchange whatsoever. The Euro has hopefully hit a…
