Seeking Alpha

Dr. Kris'  Instablog

Dr. Kris
Send Message
Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • Intraday Market Notes: Tootsie On A Roll -- December 3 0 comments
    Dec 3, 2012 4:19 PM | about stocks: GIL, DST, GEO, TR, UUP, FXB, TTF, TUR

    4:00 pm ET: The ISM number reported today came at 49.5 which was lower than expected. A value below 50 indicates that manufacturing is contracting and by inference so is the economy. Naturally, this news did not sit well with investors who chose to take some chips off the table. It appears as if the major averages will be closing at or near the lows of the day with the Dow Transport Index (DTX) heading the decline. Since the DTX typically leads the other major averages, further downward movement is expected. The 5% rise in the VIX reflects this increase in bearish sentiment.

    You'd think that a decline in stocks would be a boost for the greenback but that wasn't the case today. The bull dollar etf (NYSEARCA:UUP) broke down violating the $22 support level while the British pound (NYSEARCA:FXB) popped above $159 resistance. Not only did some foreign currencies manage to make the bulls happy but so did foreign etfs. Notable movers were the Turkey fund (NYSEARCA:TUR) and the Thai fund (NYSE:TTF) both of which posted new yearly highs.

    Compelling new highs: Stocks that have broken significant resistance levels today on heavier than normal volume include DST Systems (NYSE:DST), Geo Group (NYSE:GEO), Gildan Activewear (NYSE:GIL),and Tootsie Roll (NYSE:TR). Yes, Tootsie Roll really is its own company and today's move could be due to investors who think that because the company sports heavy insider ownership and a lot of free cash, it could very well pay a special dividend before the end of the year. (The company already pays a dividend which only strengthens the special dividend argument.) For more companies that have special dividend potential, please check out this article.

    Note to Subscribers: There are no new entries.

    Themes: long ideas, currencies Stocks: GIL, DST, GEO, TR, UUP, FXB, TTF, TUR
Back To Dr. Kris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Intraday support/resistance: $SPX 1978/1986, $DTX 849.3/854.7, $DJIA 16950/17040, Nasdaq 4498/4567, $RUT 1144/1160; $VIX 13.55/14.25
    about 19 hours ago
  • Joy in Mudville!!! USC loses to Boston College & UCLA (sans Hundley w/an impressive Neuheisel) wins over Texas. Happiness to the nth!!!
    2 days ago
  • Investors bidding up broker/dealers: Breaking out to new highs today--$SCHW $GS $MS $IKBR. ETF $IAI testing new high.
    4 days ago
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.