Wednesday Morning Coffee with TradingMarkets

Good Morning!

U.S. Stocks Resume Rally, Telecom, Energy Lead … Asian Markets Advance … Yen Weakens Against Euro on Rising Risk, Yield Appetites … Congress, White House Challenge AIG on Bonuses … Top ETFs for the Week Include: FAS, UYG, DZK, PGX, KBE …

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“This is a book that you will keep on your trading desk at all times because the quantified strategies presented have a very high probability of success, and that is what professional trading is all about.” – Kevin Haggerty, professional trader and former Head of Trading at Fidelity Capital Markets.

TradingMarkets 7 Stocks You Need to Know for Today

Here are 7 stocks for traders for today from TradingMarkets.com:

  • Political pressure continues to mount against American International Group
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    and its payment of millions of dollars in bonuses after receiving massive public assistance. Senators in Congress are looking into an excise tax to recoup bonus money already paid out to AIG derivatives traders and others in the company’s financial products division.

  • Surprisingly strong home building statistics – specifically with regard to better than expected housing starts – led to a rally in home builder stocks like Centex
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    and in home improvement retailers like Home Depot
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    .

  • Alcoa
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    announced after the markets closed on Monday that it was slashing its dividend from 17 cents per share to 3 cents per share, a cut of more than 82%.

  • Reporting quarterly earnings Wednesday before the market opens, General Mills
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    is expected to announce EPS of 88 cents.

  • Both Nike
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    and Oracle
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    are scheduled to announce earnings Wednesday after the bell. Analysts are expecting EPS of 79 cents from Nike, and earnings per share of 0.32 from Oracle.

For a list of today’s highest PowerRating stocks, click here.

TradingMarkets 5 PowerRatings Stocks for Today

Company
Symbol PowerRatings
ProShares Short S&P 500 ETF SH 9
Rydex Inverse 2x S&P 500 ETF RSW 9
ProShares UltraShort MSCI Japan ETF EWV 9
ProShares UltraShort Health Care ETF RXD 8
Rydex Inverse 2x Russell 2000 ETF RRZ 8

View More Stocks

If your stock trading could use a boost, then treat yourself to a free, 7-day trial to our Short Term PowerRatings. The highest rated Short Term PowerRatings stocks have outperformed the average stock by a margin of nearly 17 to 1 after five days. Click here to start your free trial today!

TradingMarkets Making Great Traders


Hedging Your Long Position with the VXX
TradingMarkets

How can traders use the VIX ETN as a hedge for stock investments? In this trading lesson, Larry Connors discusses one of the ways to hedge your long position with the VXX.

How Backtesting Helps Remove StressTradingMarkets

What exactly, will a trader get out of backtesting their trading system? TradingMarkets contributor Walter Peters provides several methods traders can use to remain confident in their ability to make money from the markets.

TradingMarkets 7 ETFs You Need to Know for TodayTradingMarkets

Among the sector leaders on Tuesday was telecommunications. ETF traders and investors can get exposure to this group by way of exchange-traded funds like the Telecommunications HOLDRS.

TradingMarkets Daily PowerRatings Analysis


PowerRatings, Patience and Profit-Taking
TradingMarkets

After a brief break, the rally in stocks resumed on Tuesday, forcing a number of short ETFs lower and lower into oversold territory above the 200-day moving average.

Click here to sign up for Larry Connors’ Trading Lesson of the Day.