It's All About the Dollar

1:00pm (EST) The market has turned lower after getting off to a strong start this morning. At one point the Dow traded to a high of 10,072, up 100 points, but is now down 84 to 9,887. We were hoping the Dow could hold 9,900 and it still may but the break below this level was not good on a technical level. A drop in the dollar initially gave the market a boost, but the currency has quickly strengthened which has stalled the rally in commodities. A gain in the dollar makes commodities more expensive for overseas buyers…Oil is also trading lower and is back below $80 a barrel. It has slipped $1.10 to $79.40. Sohu.com (SOHU, $59.77, down $11.58) is off a whopping 15% despite beating Wall Street’s expectations. Earnings came in at $0.96 a share, 7 cents better than the analyst’s estimates of $0.89 a share. Revenue for the quarter was $136.6 million, versus expectations of $136.4 million. The one thing hurting the stock…the company sees fourth-quarter sales of $134.5-$138.5 million, versus Wall Street’s estimates of $140 million. The company also forecast earnings of $0.90-$0.95, versus expectations of $0.99. We told you earnings were tricky… We did well with RadioShack (RSH, $17.96, up $2.30) today and there are a few trades we are watching right now. We are thisclose to pulling the trigger on a trade but we are waiting for better entry prices. The stock is up 4% today and will report earnings after the bell on Tuesday. We discuss the trade in the Members Area and we have a limit price set in case the stock comes back down a little.]]>

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It's All About the Dollar

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