Stories of the Day for 7/16/08

As oil falls, gold should be taken down with it as inflation fears ease. Easy short for this will be the GDX (Currently: $48.60)

I also think that today's Wells Fargo (WFC) is good news for only them and the very few banks in the same situation. This may be the pop that people should look to sell their longs and go short.

I think the relative weakness in Wachovia (WB) today is a sign to short it. Short sellers are working hard to keep it below $10.00 and push it towards $5.00
With a tight stop, this is a SHORT. Current Price: 9.70

CBI pre-announced yesterday that it will take a 4th quarter loss and the stock is down sharply. At the same time, it is taking down other infrastructure stocks. CBI problems are solely theirs- they have had problems with their UK projects for multiple quarters! This weakness should be taken advantage of- Shaw Group (SGR) confirms for us the general strength of infrastructure industry.

Let's look at some of our previous calls:

The Oil UltraShort (DUG) is working out great! (Maybe to soon to toot my horn, but) it up 5% today to $34.25
Owens-Illinois (OI) is up 4.5% to 43.98 and breaking out past $44. Looks to be going higher as fears of raw cost brought it down dissipate. Most recent recommendation was at $40.50- 8.6% gain!
Mastercard (MA) is up an enormous 7% today to 268. Originally recommended at 242, up $26, or 10.7%
CSX Corp (CSX) is up 6% today after strong earnings to $61.35. Flat since my recommendation.
AGCO (AG) and Nike (NKE), and Frontline (FRO) are flat for the day.
Frontline (FRO) is up to $61.80 from my $59.75 and I want to recommend easing up on it. I like this company less right here.

Foster Wheeler (FWLT) is down to 2.7% to 59.75. Down since my most recent reiteration at $62.80
Garmin (GRMN) is up 7.5% today and $2.00, or 4.5%, since my Short recommendation. Seems to be rallying on the Ford Europe news and a technical breakout. I still don't like GRMN but the market may be telling me I'm wrong. I want to do more research.

My CLF / X / RIO /AKS call doesn't look clearly right at the moment. The charts looks like there is more pain to come, at least, until earnings are released and more news is out.

That' definitely better than the the S&P's 11% loss in about a month.