11:00pm (EST) 1. Commentary 2. Imax Could Be A Wildcard 3. Earnings 4. Current Trades 5. Closing Thoughts ************************************************** 1. Commentary The market was on pins and needles all week as all eyes were on “the number” before the bell on Friday. It was a choppy week that started off with a thud as the Financial stocks took a beating after rumors of a big bank failure was making the rounds. Wells Fargo (WFC, $26.91) squelched murmurs of a dilutive secondary offering which has been going around for weeks as the company said it intendeds to repay the TARP funds it borrowed without raising equity. Of course, a weaker-than-expected unemployment rate of 9.7% made the print on Friday as Wall Street had expected 9.5%. Despite the not so shocking news, the market trended higher on Friday but finished lower for the week. Overall, the Dow lost 103 points to finish the week at 9,441. The Nasdaq fell 10 and stands at 2,018 while the S&P 500 gave back 12 points and closed at 1,016. I’ve got a lot I want to talk about so let’s move on after enjoying this Holiday weekend… ************************************************** 2. Imax Could Be A Wildcard Folks, I am really starting to like Imax (IMAX, $9.30, up $0.12). This piece is from the December 8th, 2008 Blog: “I’m not all that excited about the “movie” stocks but there may be an opportunity to make some trades within the sector as we head into a festive time of the year. Thanksgiving through Christmas is movie heaven and there’s a chance some of these beaten down stocks could recover. The one player I do like in the sector is Imax (IMAX, $2.73, down $0.08) and I have mentioned this stock before at higher levels. I do not trust the stock enough to buy any longer-term options (yet) but Imax could be a force in the movie industry down the road. Although we were successful in riding Imax to its 52-week high, the stock has dropped nearly 70% from a peak of $8.28. The stock is cheap enough to the point where instead of making an option trade it might be better off to buy the stock. It eliminates the risk of an option expiring worthless and if Imax can get to $10, you would easily triple your money. Imax has its fingers in a lot of pies and is developing some solid business partners and relationships with some top-tier names. The company recently inked a deal with Walt Disney (DIS, $21.94, up $0.48) and is strategically building the “Imax Experience” into a tidal wave. ” (END) If you had just bought the stock back then you would be up nearly 250% today. So what is next for Imax? To read the rest of this story, please go to our Members Area. Subscribers click on Tuesday’s link 9/8/09. ************************************************** 3. Earnings Monday: Market Closed Note: Check the Members Area for a possible trade on a couple of these names. Tuesday: Casey’s General Stores (CASY, $28.32, up %0.06), Nobel Learning Communities (NLCI, $10.32, down $0.06), Pep Boys (PBY, $9.30, up $0.60), Smithfield Foods (SFD, $13.04, up $0.31). Wednesday: Globecomm Systems (GCOM, $7.60, up $0.43), Hi-Tech Pharmacal (HITK, $15.79, up $1.00), Investors Real Estate (IRET, $9.19, up $0.12), Men’s Wearhouse (MW, $25.91, up $0.66), Shuffle Master (SHFL, $7.50, up $0.25), Smith & Wesson Holding (SWHC, $5.28, up $0.09) and United Natural Foods (UNFI, $27.86, up $0.43). Thursday: AEP Industries (AEPI, $38.18, up $0.40), Lululemon Athletica (LULU, $19.97, up $0.18) and Navistar International (NAV, $46.35, up $1.50). Friday: Aceto (ACET, $6.50, down $0.06), Brady Corporation (BRC, $30.35, up $0.56) and Campbell Soup (CPB, $31.19, up $0.31). ************************************************** 4. Current Trades For our current trades please check the Members Area. ************************************************** 5. Closing Thoughts Depending on this week, it looks as though the bulls are at least going to hold Dow 9,000 as we head into 3Q earnings season. We saw a lot of companies beat in the second quarter but that was by cutting costs. We will need to see revenue growth at some point. We were shaky on Tuesday with the Financials taking a hit and the China market tanking but the sell-off didn’t have any follow through. By Thursday, the bulls were back in buying the dip and started nibbling again on Friday. As I go to press, Dow futures are up 45 while the Nasdaq and S&P 500 futures are up 6. That means that sentiment is leaning towards a positive open on Tuesday. Rick Rouse Rick@MomentumOptionsTrading.com]]>
