It’s good to see Goldman lifting the financial sector this morning although I’d argue that many of the tag-along companies probably don’t deserve it. If this strength hold it should break a 6 week downtrend on the XBD and bring that index back over its 50-day moving average. It would also help XLF to lift and continue to work on a double bottom.

On Today’s Calendar:

• nothing

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:

See one of the recent ‘Chart Reading‘ posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.

Potential day trades:

(From Briefing.com)

Gapping Down

In reaction to strong earnings/guidance: CSIQ +7.6%, SYUT +4.9% (light volume), CX +3.0%, CFX +2.4%, GS +2.0%, BBY +1.0%… Select mining stocks showing strength: RTP +2.5% (Chinalco may be keen to raise its stake in Rio Tinto - Sky News Online), BHP +1.8%, MT +1.8%, LMC +1.7%… Select financial stocks showing strength boosted by better than expected GS earnings results: UBS +4.0%, MER +2.5%, LEH +2.4%, C +2.2%, ING +2.1%, BAC +1.7%, HBC +1.0%… Other news: EFUT +6.9% (signs contracts to provide logistics resource management solution to WuShang), ELN +4.0% (Elan and Wyeth announce top-line results from Ph. II clinical trial of bapineuzumab for Alzheimer’s), ALU +4.0% (Alcatel-Lucent and China Mobile signed a $1 bln framework agreement covering cooperation on mobile network upgrades and expansions in 2008), IFX +3.9% (shares up in Europe on Hynix deal, Samsung forecast - DJ), ERIC +2.4% (Sony Ericsson sees strong global demand for handsets - Reuters), WYE +2.4% (Elan and Wyeth announce top-line results from Ph. II clinical trial of bapineuzumab for Alzheimer’s), TEVA +2.3% (still checking), SQM +2.2% (Cramer makes positive comments on MadMoney), NMX +1.9% (reports May 2008 volume averaged 1.902 mln contracts per day), INSP +1.6% (Board renews authorization of stock repurchase program of up to $100 mln), URI +1.3% (commences modified Dutch Auction tender offer to purchase up to 27.16 mln of its shares at a price not less than $22 nor greater than $25 per share)… Analyst upgrades: BCS +5.3% (upgraded overnight in Europe to Hold at Dresdner Kleinwort), JBLU +4.1% (upgraded to Equal Weight at Morgan Stanley), CME +3.5% (upgraded to Buy at Citigroup), RBS +3.2% (upgraded overnight in Europe to Add at Dresdner Kleinwort), DHT +2.7% (upgraded to Neutral at JPMorgan), HOV +1.9% (upgraded to Neutral at UBS).

Gapping Up

In reaction to disappointing earnings/guidance: INFN -29.3%, LZB -10.3%, ADBE -2.3%, TGAL -2.3% … M&A news: CDNS -3.8% (proposes to acquire Mentor Graphics for $16.00 per share in cash)… Other news: CCH -5.8% (Bloomberg.com reports four brokerages including Merrill Lynch and Marfin Securities SA cut their price estimates for bottler after the co lowered its annual sales volume and profit forecasts), MHO -4.6% (still checking), ROH -4.6% (announces set of actions to restore profitability; will impact approx 925 positions expecting to result in estimated $0.35/share charge for Q2), LMNX -4.1% (announces public offering of common stock of 3.5 mln shares)… Analyst downgrades: CCC -5.7% (downgraded to Sell at Morgan Joseph), ACAD -2.3% (downgraded to Market Perform at FBR, downgraded to Hold at Jefferies and downgraded to Sell At BofA), CNK -1.5% (downgraded to Equal Weight at Morgan Stanley), STRA -1.4% (downgraded to Hold from Buy at Stifel Nicolaus).

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