Here is a list of stocks which traded higher Tuesday November 10, 2009 on unusually higher volume. I will keep an eye on these stocks Wednesday to see if there is continued buying pushing the stocks higher. This method is just one of the ways I use to pick stocks to structure particular option trades. This post requires the knowledge of stock options. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, click here.

The table below shows the company, ticker, per share % increase, and volume increase (% increased compared to 50 day average). For your convenience I have ranked the stocks in order from greatest to least volume % change.

Here is a list of stocks which traded higher Monday November 9, 2009, on unusually higher volume. I will keep an eye on these stocks Tuesday to see if there is continued buying pushing the stocks higher. This method is just one of the ways I use to pick stocks to structure particular option trades. This post requires the knowledge of stock options. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, click here.

The table below shows the company, ticker, per share % increase, and volume increase (% increased compared to 50 day average). For your convenience I have ranked the stocks in order from greatest to least volume % change.

The complete list of Brazil ADRs traded on U.S. exchanges is listed below:

Emerging markets are the best performing markets this year. In these markets, the main market indexes of countries like Brazil have skyrocketed year-to-date (YTD) relative to other countries. For example, the MSCI Brazil Index ETF (EWZ) is up an incredible 99.42% as of September 30, 2009. Some of the Latin American ADRs have also had great runs.

The list below shows the Latin American ADRs which are up 100% or more as of Oct 6, 2009:

Brazil is one of the year-to-date top performing markets among the emerging countries. The infrastructure in Brazil is good and the country is blessed with an incredible array of natural resources.

The Dow Jones Brazil Titans 20 ADR Index represents the 20 largest and most liquid Brazilian stocks traded on the major exchanges of the United States.

Along with Shanghai, the European and North American equity markets had a tough week. Only a final 30-minute rally attempt (or pre-weekend short squeeze) served to powder the face of this pig. The rest of the world seems to be oblivious to credit market issues that threaten to butcher equity markets at any point.

At the closing bell on Friday in New York, the S&P 500 (1,004.09 -8.64 -0.85%), the DJIA (9,321.40 -76.79 -0.82%) and the NASDAQ Composite (1,985.52 -23.83 -1.19%) closed lower, but the usual ‘buy the dip’ traders did not appear.

The Great Reflation play continued to unfold on Monday. At the closing bell, the S&P 500 (1,002.63 +15.15 +1.53%), the DJIA (9,286.56 +114.95 +1.25%) and the NASDAQ Composite (2,008.61 +30.11 +1.52%) were all sharply higher. As with the Thursday and Monday rallies, the market leaders were Basic Materials (XLB +3.5%) and Financial (XLF) sectors. Consumer Discretionary (XLY) and Energy (XLE) were also strong.

Economic data did play a role on Monday along with the falling US Dollar (77.59 -0.69 -0.88%). But the $USD has sunk to a new cycle low, with prospects of a further decline to 74, and that picture took on some clarity after 3:00am ET in the early morning yesterday.

By Claudio Freitas

As we expected, yesterday the Brazilian real went through the psychological barrier of BRL/US$ 2.00 without major problems. The continued acquisitions of dollars by the Brazilian Central Bank were not strong enough to prevent the appreciation of the Brazilian currency.

As we have said last week, the Brazilian real is heading on a one-way street up against the U.S. dollar; we see this as a lasting trend and not as a short-term correction. As we also said here, the Brazilian Central Bank policy of accumulating reserves is a very good one, but it will not prevent the appreciation of the Brazilian real.

In the next few days, the Brazilian currency will test the psychological level of BRL/USD 2.00, and we expect it go through it without major problems. Yesterday the Brazilian BRL/USD reached 2.02 and it did not go further because the Brazilian Central Bank did all it could to prevent a major appreciation.

By Claudio Freitas, CFA

We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, or AmBev (ABV). The company posted good results for the first quarter of 2009 with excellent results in the key Brazilian market. InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies.

The ETF Innovators Highly Defensive Index contains 32 market cap leading companies from the defensive industry groups (A-K) specified below in addition to one position reserved for the SPDR Gold Trust (GLD) as a hedge against long-term inflation and global currency devaluation. Since I last wrote about the index two months ago, Genentech has been acquired by Roche (RHHBY.PK) and the number of securities has been reduced from 40 to 33.

1. Mass Merchant Discount Retailer (1): Wal-Mart (WMT)
2. Consumer Staples (10): Coca-Cola (KO), Colgate-Palmolive (CL), AmBev (ABV), General Mills (GIS), Kraft Foods (KFT), Nestle (NSRGY), PepsiCo (PEP), Philip Morris International (PM), Procter & Gamble (PG), Reckitt Benckiser (RBGPF.PK)
3. Telecom Services (3): AT&T (T), Telefonica (TEF), Verizon (VZ)
4. At-Home Services (2): Cable TV/Internet Provider (1), Internet Portal/Search Provider (1) – Comcast (CMCSA), Google (GOOG)
5. Utilities (1): Southern Company (SO)
6. Fast Food Restaurants (1): McDonalds (MCD)
7. Commodities (2): Gold (1) + Agri-Biotech (1) – SPDR Gold Trust (GLD), Monsanto (MON)
8. Healthcare (11): Abbott Labs (ABT), Amgen (AMGN), Celgene (CELG), Genzyme (GENZ), Gilead (GILD), Baxter (BAX), Johnson & Johnson (JNJ), MedcoHealth Solutions (MHS), Novartis (NVS), Roche, Teva Pharma (TEVA)
9. Aerospace (Non-Commercial) & Defense (1): Lockheed Martin (LMT)
10. Integrated Energy (1): Exxon Mobil (XOM)

Disclosure: No positions.

This is the 4th Quarter 2008 edition of our ongoing hedge fund portfolio tracking series. Before reading this update, make sure you check out the Hedge Fund 13F filings preface.

This week, turning the focus to global macro funds, we'll be checking in on Bruce Kovner's Caxton Associates. Do note that global macro funds are typically not equity focused funds. While they do indeed have equity exposure, the majority of their holdings are in other markets. So, we mainly check in on their sector exposure to see what types of global macro themes they may be investing in.

The iShares MSCI Brazil Index (EWZ) is down about 55% for the year. However, in the last month, it has risen over 35%. Brazil companies are on the move. Of the four BRIC countries, Brazil seems to be the country that is in the strongest shape and has the greatest potential. So what Brazilian stocks should you invest in? One resource is the book Investing in Stocks.

• If you are looking for a petrochemical company, there is Braskem S.A. (BAK), the largest thermoplastics producer in Brazil. Unfortunately, the company has recently generated negative earnings; however, revenues for the latest quarter were up by 8.9%.
• With growth in the rebuilding of infrastructure, the demand for steel should increase, and should benefit Companhia Siderurgica Nacional (SID), the second largest Brazilian steel manufacturer. The stock has a P/E of 15.5, and a yield, based on historical payments this year, of 13%.
• Companhia Vale (RIO) is the second largest mining company in the world and the largest logistics operator in Brazil. The stock has a P/E of 7 and a yield of 1.1%.
• Banco Itau Holding Financeira S.A. (ITU) is the second largest bank in Brazil, and also owns the investment company, Investimentos Itau. The stock has a P/E of 15.5 and a PEG of 0.84. It pays a small yield of 0.5%.
• Telemig Celular Participacoes S.A. (TMB) is one of the largest cellular providers in Brazil. The stock has a P/E of 5 and pays a small yield of 0.%.
• If you like beer, you'll love Companhia de Bebidas Das Americas (ABV) also known as AMBEV, which distributes beer, soft drinks sport drinks, and bottled water. The stock has a P/E of 19 and a PEG of 2.5. Their yield is 5.1%.
• CPFL Energia S.A. (CPL) is one of the largest electrical utilities in Brazil with a P/E of 12 and a PEG of 8.13. The yield is 13.1% based on historical dividend payments.

To see a list of all Brazilian stocks, check out WallStreetNewsNetwork.com or the book Investing in Stocks.

The Brazilian beverages manufacturer AmBev (NYSE: ABV) reported declining margins, but EBITDA growth of (+6.4%) for the third quarter. The company reported a recovery from the 70pbs loss of beer market share in July, ending the the quarter with a market share flat versus 3Q '07.

AmBev Brazil's consolidated result showed a 7.2% improvement in organic net revenue, and organic EBITDA up 8.8%, to R$1.297 million (US$576 million), with an EBITDA margin of 45.6%.

Crude Oil Jumps - ExxonMobil (XOM)

Crude oil jumped more than $5 a barrel on geo-political tensions and the weaker dollar. Shares of ExxonMobil rose 2% for one of the biggest moves in the markets. The shorts got squeezed, says Joe Terranova. That’s the bottom line. My feeling is that oil will run higher and then fail about $4 or $5 higher.

Investing globally is viewed by most as an essential portfolio strategy. I can't take issue with this, as I am one of those who believe this to be true. Truth is, I am probably over-weight in foreign securities. Occasionally it is a good idea to remind oneself that buying securities in such bastions of economic and legal stability such as China, Russia, Brazil and, to a certain extent, India does come with increased risk, and the potential to lose a great amount of capital in a short period of time.

China loves investment - on its own terms, as it controls many stocks through special voting rights and exercises control to the extreme over practically any venture that threatens to loosen the communist dogma that is omnipresent, albeit with a smiling face at present.

Long or Short Oil? U.S. Oil Fund (USO)

Oil rose 4.7% last week, stocks were beaten up and the weak dollar and supply concerns were to blame. Jeff Macke would buy USO on dips and said shorting oil is “the silliest trade right now.” Tim Seymour thinks the Fed should be more concerned with inflation, and feels the economy is bearing too much a resemblance to that of the 70s. Jon Najarian says there is a short-term top in crude and Guy Adami observed DUG jumped on Friday, and might indicate a potential dip. Macke says speculation is bringing oil higher. Dennis Gartman said one has to be “absolutely, bloody nuts” to trade crude oil. He looks the airlines, which will rise when oil falls, but Gartman emphasizes it is a trade and he would put in stops. He is also long gold and grains. The group noted airlines fell 20%. Guy Adami is bullish, but Najarian says only international airlines are working.

The Brazilian real has doubled in the past five years, reports Ryan McLean in the Morningstar, which makes it all the more surprising that Warren Buffett has taken a recent shine to the currency as his shelter from the U.S. dollar. However Morningstar recommends not the currency, but two particular stocks - AmBev (ABV) and CPFL Energia (CPL) - as a more advantageous way to stake a claim on the real's future.

Although we caution that leverage of any kind works both ways, we think investors who are confident in the real's prospects relative to the dollar would do well to consider these companies. If the currency does poorly, the underlying strength of these businesses should help cushion the downside.

Brazil is known for its natural resources and has very successful financial companies and telecommunications companies. Brazil is also home to the superstar supermodel Gisele Bundchen, who is not only rich and beautiful, but is also very intelligent. But Brazil also has some interesting food companies.

Here are some that may be worth taking a bite out of:

Hard times won't stop gamblers from betting, partygoers from drinking and smokers from puffing. In fact, economic turbulence might give them even more reason to indulge. That makes so-called sin stocks, or shares of alcohol, gaming and tobacco companies, a safe bet as the U.S. economy slows.

The roar of a bear market rings hollow with sin stocks. During the 2000-02 downturn, Standard & Poor's Casinos and Gaming index gained 115%, while the S&P 500-stock index plunged 47%. Shares of tobacco giant Altria (MO) (then known as Philip Morris) more than doubled, and the stock of Anheuser-Busch (BUD), the largest U.S. brewer, advanced 87%.