Everyone is awaiting the job numbers here in the US, and the gold and silver markets appear to be waiting for the news in order to breakout or breakdown. World markets are strong today, following up yesterday's strong performance which was based on a possible QE3 and the Greek news.
Looking at Asian markets we see that most are up:
All Ordinaries - up 0.90%
Shanghai Composite - up 0.79%
Nikkei 225 - up 1.65%
NZSE 50 - up 0.59%
Seoul Composite - up 0.88%
In Europe we see mixed markets across the continent:
CAC 40 - down 0.17%
DAX - up 0.18%
FTSE 100 - down 0.07%
OSE - down 0.07%
We have been excited about Caterpillar's (CAT) prospects and mentioned taking a look at them over the last few weeks. The stock has been strong in rather sluggish market since then, and with all the economic news we have gotten it only reinforces our belief that this is one of the best ways to play higher commodity prices and an expanding economy here in the US as well as in China. The stock has been a strong performer and finds itself within 10% of its 52-week high, so this is something we wanted to bring back to our readers' attention.
Gap, Inc. (GPS) was able to take out the $25/share level yesterday, but unable to hold it. The stock still finished higher, but we are interested in seeing it take out and hold certain levels. Like we said yesterday, this is not a long-term trade, but a short-term trade here. Over time it may become a longer-term play, but for now we are focused upon what the momentum traders are doing, and they are riding Gap higher.
Starbucks (SBUX) announced that they will sell single serve coffee makers. The announcement of the release of that news put the stock up to new 52-week highs in trading yesterday. There might be a bit of a sell-off this morning, but we are on this trade due to the momentum. We own no shares personally, but have been actively recommending it, and shall remain of that mindset.
This morning we are left wondering if Sirius (SIRI) is indeed the way to play radio going forward. It is quite expensive in our view, but a deleveraging play which provides upside and the potential for a dividend. We are beginning to think that the streaming internet players are cannibalizing each other and unable to move outside their current market.
This is all based off of the Pandora (P) earnings, so it will take longer to see if a trend is developing. We do know that we want no part of Pandora right now, or any time soon. It is most certainly broken and shall remain so until investors can get a handle on what exactly is occurring in their business.