Well it's Wednesday so we've got oil inventory data being released at 10:30. Seems like every week there's more & more drama around these reports. So you know I won't even be thinking of initiating any positions until 10:45 or so.
Speaking of oil, Duru forwarded ths WSJ article to me -- Rising Oil and Gas Prices Add to Energy Pressure On Broader Economy. He highlighted a key (and scary) portion (Duru's comments are in italics):
This is my first time REALLY absorbing the scope and magnitude of the potentially imminent crisis from this Hurricane. This stuff is deep. And Lord help us if we get yet one more shock to the energy complex. Here is a quote from this excellent article that tripped me out:"Typically, car tanks are about one-quarter full. If buyers start keeping car tanks three-quarters full, the added demand would quickly drain the entire system of gas supplies. Dan Pickering, president of Houston-based Pickering Energy Partners, says: "What you don't have in the system is the ability to run every car full of gas. If you get a hoarding mentality among the consumers, then it tightens the system even further. Fear of shortage begets the shortage. It becomes a vicious circle."
If the U.S. auto fleet of 220 million vehicles went up to three-quarters of a tank -- or, say, 10 gallons more -- it would be an additional 2.2 billion gallons of demand. Gasoline inventories were 195 million barrels on Aug. 19, and diesel an additional 77 million barrels, according to the latest government data, or a total of 8.19 billion gallons and 3.23 billion gallons, respectively."
Alternative energy plays are sounding better & better with each passing day! I think I need to start doing some research. About a year ago I saw a chart of the U.S.'s daily oil consumption compared to other countries in the world and I was flabbergasted at how much higher we were than everybody else. I think the tipping point is near...
And now back to the stuff that really matters, charts not opinions. :-) I'll be back in an hour or so to post the gappers...
Potential swing trades:
Longs - None
Shorts - None
Potential day trades:
(From Briefing.com)
Gapping Down
INSM -32% (competitor Tercica has secured an approval for Increlex), ADCT -6.1% (reports JulQ), ARRO -4.2% (lowers AugQ rev guidance), SNY -2.7% (reports JunQ), SMTC -2.6% (reports JulQ, guides lower; Global Crown Capital downgrade), NVLS -2.6% (mid-quarter update, disappointing guidance), NDAQ -2.5% (Instinet Group settles lawsuit, but it raises the price that NDAQ will pay by $1 mln -- Marketwatch).
Gapping Up
TRCA +22% (FDA approval for Increlex), SIRF +9.3% (chosen as supplier for Garmin), ARXT +7.3% (extends yesterday's 9% move; started with $35 tgt at RBC), TIF +7.3% (reports JulQ, guides higher), MEDI +7% (amends Synagis deal with Abbott; raises 2007 EPS forecast), CREAF +6.4% (accuses Apple of iPod patent breach), HOTT +6% (Citigroup upgrade), HXM +6% (Mad Money mention), SIGM +5.2% (reports JulQ), BSM +4% (extends yesterday's 60% move), CY +3.5% (Mad Money mention), RRGB +3.3% (Bear Stearns upgrade), SIMG +3.1%, BLDP +3% (extends yesterday's 16% move), IPII +2.2% (extends yesterday's 24% move), ALDN +1.8% (wins contract)... Stem cells trading higher: STEM +4.6% (receives manufacturing license), ASTM +4%.... Under $3: FMTI +20% (submits an Investigational NDA), SATC +10.5% (Ardour Capital upgrade; extends yesterday's 20% move).
Disclaimer & How I use this list
As Thomas Sowell would say... shortages are a price, not supply, phenomena.
- MikeB