We're Fading Fast

 | Oct 26, 2011 | 10:38 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

lng

,

ftk

We have some aggressive gap-and-fade action this morning. Breadth is fading fast and the Nasdaq-100 is already in the red. The problem is that there is no clarity out of Europe and the poor report from Amazon (AMZN) is hurting the big-cap momentum names.

Precious metals are leading for a second straight day, but we have notable weakness in retail. Oil is still chugging along, but it is starting to be a concern for consumers as gas prices move higher again.

One sector I'm watching closely is natural gas. Cheniere Energy (LNG) entered into a major deal and it may be a sign that we might start to see some exploitation of the amazing low natural gas prices in the U.S. A couple of gas-related plays on my radar are Flotek Industries (FTK), which announced increase revenue guidance today, and Clean Diesel Technologies (CDTI), which announced a contract with New Jersey.

As I noted in my opening post, I'm optimistic about the market if we can consolidate at this point, but we have to get Europe out of the way to give us greater clarity.

I'm holding very little long inventory right now, but I'm a buyer as things set up. We are fading fast, which should provide good entry points. It is matter of stalking some names and slowly building positions.

Columnist Conversations

Using this year's estimate to make a P/E is pretty standard. Basing a multiple on 2015's projected EPS is not ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.