Wednesday, February 7, 2007

Quick Post Market Comment

As expected, not much movement in Akamai (AKAM) following earnings that were a penny better than expected along with a modest beat on the top line. Call options players in the Feb55s and 60's are going to get smashed tomorrow.

Maxim Integrated (MXIM), no EPS because it's in the process of restating 5 years worth of results due to options grants. It did post 2nd quarter revenue of 445.9 mln, weel below estimates of $490.4 mln.

Other earnings of note tonight: Pru and EDS both beating estimates, pushing their shares higher. SINA earnings and revenue beat, but guidance came up light the stock is down more than 3 percent continuing a pattern of Chinese internet related plays that have suffered following earnings.

I'm listening to the radio, wonderful to hear Obama is going to quit smoking again. Who cares. I'd love it if a chain smoking member of the High Tar and Nicotine Cigarette of the Month Club Sponsored By Big Tobacco got elected if he/she could really turn the country around.

Dow-30 briefly touched yet another record high, and even with 10 yr treasury yield down to 4.75 and crude falling below $58, no ability for the blue chip bulls to sustain a rally - Dow closed unchanged. Nasdaq looked a bit better thanks to Cisco, up 19 points, or 3/4s of a percent. Better performance continues to be in small cap realm where Russell 2000 rose .7% and S&P midcap chalked up a gain .6%. Rotatation... or if you're not rotating, it's the 2007 market version of the 1970's kids toy, which made my next door neighbor puke - a thing called Sit N' Spin.

Crude oil - short position remains open after another failure to cross past $60 and inventory numbers that were interesting, but still left everyone realizing that there's plenty of crude, gasoline, distillates, etc. (see earlier comments about short term target). It's still chilly, will remain chilly, so nat gas is holding up. At the first whiff of a thaw, look out for a pull back.

Gold - patience is needed, but quite frankly it's great that while $665 is a strong resistance point, we haven't seen it sink back down below $640. I still think the yellow metal will explode to the upside before the 2nd quarter is out.

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