Watchlist for September 2, 2008

The indices are gapping up this morning partially *fueled* by a big drop in oil, which is gapping down away from its 200-day moving average.

On Today's Calendar:

10:00 -- Construction Spending
10:00 -- ISM Index

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 disappointing earnings/guidance: XIN -15.2% (light volume)... Select oil/gas stocks showing weakness with crude sharply lower: STO -8.7%, BP -5.4% (Chesapeake Energy and BP America announce Fayetteville Shale joint venture), TOT -5.0%, RDS.A -5.0%, HK -4.7%, E -4.2%, OXY -4.2%, APC -4.0%, COP -3.4%, DVN -3.3%, APA -3.0%, CVX -2.9%, XOM -2.7%... Select metals/mining names showing weakness with lower spot prices and strength in dollar: AAUK -11.7%, GOLD -10.3%, RTP -9.9%, BHP -9.2%, AEM -7.9%, GFI -7.7%, AU -7.7%, AUY -7.6%, SSL -7.3%, MT -6.2%, ABX -4.9%, NEM -4.7%, FCX -4.3%, PAL 3.9%, GLD -3.8%... Select agriculture names showing weakness: POT -4.1%, MOS -4.0%, SYT -3.3%, CF -3.2%, AGU -2.6%, BG -1.7%... Other news: FRO -10.8% (trading ex-dividend), NOK -3.3% (still checking), SGP -2.6% (Schering-Plough, Merck's Vytorin may be linked to cancer deaths - Bloomberg.com)... Analyst comments: ESV -4.1% (downgraded to Underweight at JPMorgan), GILD -2.1% (downgraded to Neutral at BofA).

Gapping Up

In reaction to strong earnings/guidance: DHT +4.9%... M&A news: SCRX +58.3% (acquired by Shionogi & Co for $31/share in cash), ISH +21% (Liberty Shipping proposes to acquire International Shipholding for $25.75 per share in cash)... Select airlines showing strength with crude sharply lower: LCC +17.2%, AAI +15.4%, AMR +14.7%, UAUA +14.6%, NWA +11.1%, RYAAY +9.9%, CAL +9.8%... Select mortgage/financial names showing strength: FRE +8.0% and FNM +6.4% (following another weekend without any major negative developments on FNM & FRE; also a NY Times Dealbook story said Fannie Mae and Freddie Mac should merge), PMI +5.8%, LEH +5.5% (Korea Development Bank confirms it is in talks to invest in Lehman - WSJ), WB +4.3%, C +2.9%, DB +2.6%, MER +2.3%, GS +2.1%, JPM +2.0%... Other news: IRBT +11.4% (awarded $200 mln ceiling IDIQ U.S. Army contract for robotic systems, spare parts and accessories), GRRF +11.0% (won centralized bid to supply CDMA wireless coverage products to China Telecom)... Analyst comments: PCLN +3.8% (upgraded to Outperform from Neutral at Credit Suisse), LOW +2.5% (upgraded to Buy at Goldman -Bloomberg), AAPL +1.6% (added to Alpha List at Piper).