The market had a very quiet day, weakening on the backs of renewed fear over Greece debt as talks were stalled on a debt deal that Greece has been trying to get passed to help avoid a default. The crisis weighed on the market, but it was not a strong decline. The market was able to rally back through most of the day and ended down very slightly. Strength in the dollar hurt stocks as well as commodities additionally.
Moving into tomorrow, the market still has not broken down despite issues with Greece, lack of catalysts, and even some weaker data points. The bull market seems quite strong, and we are at a point where it seems the market is just waiting for the next round of news to buy more. Therefore, we need to continue to watch stocks with potential upside.
Two stocks on our radar that we entered today are Oil States International (NYSE:OIS) and Activision Blizzard (NASDAQ:ATVI). We like both stocks to make a bounce higher over the next week to two weeks as both have exciting earnings reports ahead. ATVI reports at the end of this week, and we think that the "Call of Duty: MW3" craze should translate into an exciting buzz before the report. The stock has not really moved much since its release, and we think that the game was a major hit that should have translated into solid earnings. OIS has a report next week. They are looking at 39% growth in sales along with 80% growth in earnings. We see both as catalysts for upside.
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For tomorrow, we are limited once again in news with Greece still definitely a problem and very little in economic data as well as earnings. It is a light day again, so we will continue our attention to Greece. Signs of progress will bode well. Signs of more issues will not bode well.
We had a solid day here as we got a 1% gain in Pioneer Natural Resources (NYSE:PXD) that we entered on Friday. We went long on Oil States International as well as Activision Blizzard.
We have the following positions. In our Short-Term Equity Portfolio we are long Monster Beverage (NASDAQ:MNST) and ATVI. In our Options Portfolio, we are long Apple (NASDAQ:AAPL), Priceline (NASDAQ:PCLN), Dollar Tree (NASDAQ:DLTR), SPDR Gold (NYSEARCA:GLD), Weight Watchers (NYSE:WTW), Nordstrom (NYSE:JWN). We are short Deckers Outdoor (NYSE:DECK) and SPDR S&P500 ETF (NYSEARCA:SPY). In our Earnings Portfolio, we are long CF Industries (NYSE:CF), VF Corp. (NYSE:VFC), EOG Resources (NYSE:EOG), OIS. We are short AOL (NYSE:AOL).
Chart courtesy of finviz.com.
Additional disclosure: We have the following positions. In our Short-Term Equity Portfolio we are long Monster Beverage (MNST) and ATVI. In our Options Portfolio, we are long Apple (AAPL), Priceline (PCLN), Dollar Tree (DLTR), SPDR Gold (GLD), Weight Watchers (WTW), Nordstrom (JWN). We are short Deckers Outdoor (DECK) and SPDR S&P500 ETF (SPY). In our Earnings Portfolio, we are long CF Industries (CF), VF Corp. (VFC), EOG Resources (EOG), OIS. We are short AOL (AOL).