Follow ICS on TWITTER
Connect with ICS on
FACEBOOK and MYSPACE
| 
Latest Hot Stock MarketSite News | Ice Man's Hot Stock Picks | News
ICS Stock Commentators | Fast Money Review
Audio Presentations by the Ice & Dollar Man
Wednesday Morning, August 12
New Ice MD: 4 Healthy Habits That Cut Disease Risk
Swing Man Market Recap and Stock Picks:
Tuesday August 11th Market Recap
Presented By Steve Nelson
1. DOW SNAPS 8-DAY WINNING STREAK
On Friday the Dow broke its 8-day winning streak and closed lower.. Once again, stocks moved higher in early trading only to give back their gains in the afternoon.
Despite an upbeat forecast from chipmaker Intel and better-than-expected profits from computer maker Dell, the market couldn’t shake off worries that the weak consumer may drag down the recovery.
How should you trade?
Strategy Session with the Fast Money traders
I expected the market to rally strongly on the back of Intel and Dell and it didn’t, says Guy Adami. That scares me.
The market has had an incredible run, counters Steve Grasso of Stuart Frankel. It makes sense to me that investors are taking profits especially on a Friday. I wouldn’t get too worried.
I was not happy at all with the performance out of tech on Friday, adds Joe Terranova. But I am impressed with the market’s ability to hold this level.
2. OIL FAILS TO BREAKOUT AGAIN
U.S. crude oil futures ended with pared gains in choppy trade on Friday. Most analysts believe crude prices are currently locked in range, with the top end at $75. Traders are now looking for more definitive moves after the Labor Day holiday weekend.
I think crude pulls back to $60 before it goes to $80, speculates Jon Najarian.
I’m bullish, counters Joe Terranova and I'm long Suncor and Weatherford, he reveals. I expect oil prices to go higher.
3. TOPPING THE TAPE: HIGH-END RETAIL TURNING THE CORNER?
High-end retailers moved up on Friday after Tiffany posted better-than-expected quarterly earnings citing a recovering demand for jewelry and they raised full-year outlook.
The jeweler said sales in various markets such as Europe, China and Australia showed modest improvement in the second quarter compared with the first quarter.
What’s the trade?
It seems most retail stocks are overpriced right now, muses Steve Grasso. But the rising tide is lifting all boats.
4. SHOULD YOU FOLLOW BILLIONAIRE JOHN PAULSON INTO STOCKS?
If you’re bored with trading in the wake of Warren Buffett, may we suggest another Wall Street whale for your consideration?
We’re talking billionaire investor John Paulson. Although this hedge fund giant isn’t as widely known as Warren Buffett — and he isn’t as rich as Warren Buffett — he is a figure pro investors watch carefully.
(In case you’re wondering Paulson ranked #78 on the 2008 Forbes list with a net worth of $4.5 billion.)
“This is someone the mutual funds are watching. This is someone who the hedge funds are watching," says Steve Grasso. This is the Warren Buffett for the next generation.
Isn't he someone you should be watching too?
His big claim to fame was predicting the implosion of mortgage markets in 2007 and the collapse of banks and other financial companies in 2008. In fact, he made a lot of money when everyone else lost their shirts.
Since then, Pualson's every move has been monitored closely by big investors with the pros always especially eager to see how he trades the banking sector.
And we see no reason why the pros should know something that you don't! Following you'll find Paulson's largest financials services sector holdings, according to his latest 13F filing.
John Paulson Investments in Financials:
- 2% Stake in Citigroup*
- 168 million Shares of Bank of America
- 2 million shares of Goldman Sachs
- 2 million Shares of UltraShort Financials ProShares
* Paulson’s 2% stake in Citi was reported by the NYPost
Should you follow Paulson into the sector or any of these stocks?
I would follow Paulson, says Jon Najarian.
I would too, adds Joe Terranova. And you should know he’s heavily into gold.
But you don’t know how guys like Paulson are hedging these bets, counters Guy Adami. If you’re going to follow a whale into a trade – make sure you proceed with caution.
5. CHART OF THE DAY: DOW TRANSPORTS REVVING HIGHER
Rail stocks closed higher on Friday, sending the Dow Transports back near its recent 10-month high. Does the action suggest stocks are topping out or confirm the rally?
I think the run is done in Dow Transport component Burlington Northern, speculates Guy Adami. I expect BNI to trade down to the mid-$70s.
6. POPS AND DROPS FOR THE WEEK
Hartford Financial (HIG) popped 17%. Deutsche bank raised its price target by 25% to $25. - I'd stay away, says Steve Grasso.
Citigroup (C ) popped 11%. Published reports said that billionaire investor John Paulson bought a 2% stake in the company. - I think the charts look good, says Joe Terranova.
Human Genome (HGSI) popped 21%. Options activity fueled speculation that this company could be a takeover target. - I've lightened up my position, reveals Jon Najarian.
Advanced Micro Devices (AMD) popped 20%. Citi upgraded the firm to ‘buy’ from ‘hold’; also rival Intel raised revenue estimates. - I would not be a buyer, says Guy Adami.
Research In Motion (RIMM) dropped 5%. Investors took profits after new concerns about the state of the recovery.
Novell (NOVL) dropped 6%. A Jefferies analyst said Friday that revenue growth for this company is "still elusive," and reiterated a "Hold" rating on the provider of computer networking software and technology services.
7. YOUR FIRST MOVE FOR MONDAY
Guy Adami recommends long CRBL.
Steve Grasso suggests long AAPL.
Jon Najarian thinks C is a buy.Joe Terranova says “China!”
back to topDr. Stock Pick Report
Click here for Audio presentation.
back to topEND
