Watchlist for December 8, 2008

We have a 3% gap up working this morning. That strength is taking the indices above and away from their September trendlines and to new 3-week highs. I don't know if this is the big short squeeze so many bulls have been looking for but I'd certainly be nervous if I was short right now. Out of the box I'm interested in how far the gap faders can push the market down. Bulls should want to see no more than a 1.5 to 2% pullback...

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 disappointing earnings/guidance: ITW -4.8% (light volume), BTH -3.7% (light volume), MMM -1.4%... Other news: ALTH -21.6% (announces top line results from Ph. 2 PROPEL trial of pralatrexate in patients with relapsed or refractory peripheral T-cell lymphoma), KSWS -8.3% (trading ex-dividend), AIB -4.9% (still checking for anything specific)... Analyst comments: IFX -8.3% (downgraded to Neutral at Goldman - DJ), CLWRD -3.5% (downgraded to Neutral at Merrill), MGLN -2.9% (downgraded to Neutral at Goldman - DJ).

Gapping Up

In reaction to strong earnings/guidance: MET +4.0%... Select financials showing continued strength: HIG +13.8%, ABK +10.4% (discloses that Ambac Assurance sent put exercise notices to each trust created as a vehicle for providing capital support to Ambac Assurance), AIG +7.7%, BAC +4.9%, C +4.5% (Citigroup and other ailing banks may need to boost their common equity - NY Post), ING +4.2%, JPM +3.1% (to participate in FDIC programs), MS +3.1%, RBS +2.6%, UBS +1.0%... Select oil/gas related names showing strength with crude higher: CHK +18.4% (updates financial and operational plans through 2010; also upgraded to Overweight from Neutral at J.P Morgan), BRY +12.3%, E +5.6% (Libya to pursue minority stake in Eni - WSJ), TOT +5.0%, COP +4.1%, HON +4.0%, PBR +4.0% (Brazil Minister says China, Petrobras in talks on $10 bln loan, according to report - DJ), STO +3.9%, VLO +3.8%, RDS.A +3.5%, BP +3.0%, CVX +2.6%, XOM +2.5%... Drug related names trading higher with select names reporting drug data: HGSI +19.2% (announces Albuferon meets primary endpoint in phase 3 Trial in chronic hepatitis C), GSK +3.3% (PROMACTA significantly increased platelet counts and reduced bleeding in long-term study of patients with chronic ITP), AZN +2.4%, SNY +2.4% (Ph. III trial results show Elitek significantly reduced plasma uric acid levels vs allopurinol in adults with hematologic cancers at risk for tumor lysis syndrome), SHPGY +1.8%... Select metals/mining names showing strength with higher spot prices: SLW +9.7%, AEM +8.0%, GG +6.9%, FCX +6.7%, MT +5.3%, BHP +4.3%, BBL +2.9%, GLD +2.2%, RTP +1.3%... Select iron/steel names trading higher: STLD +10.4%, X +9.9%, AKS +9.1%, NUE +5.6%... Select drybulk shippers showing strength : EXM +13.5%, DSX +7.5%, DRYS +5.3%... Other news: GM +24.5% (Outside pressure grows for GM to oust Wagoner - WSJ), F +19.5%, HLYS +14.5% (declares a special cash dividend in the amount of $1.00 per share), CAT +7.2% (still checking), YHOO +6.9% (MSFT CEO is still interested in Yahoo!'s search business, according to The Wall Street Journal), NYX +5.2% (Several stories out discussing Deutsche Borse and NYSE merger talks), AAPL +3.2% ($99 iPhone is coming for the holidays at Wal-Mart - NY Post), DMND +2.7% and AA +2.5% (Cramer makes positive comments on MadMoney), MCD +1.6% (says Nov global comp sales were up 7.7%)... Analyst comments: KGC +6.2% (upgraded to Outperform at Credit Suisse), OKS +2.4% (upgraded to Overweight from Equal Weight at Barclays).