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Transportation equipment industry

Schaeffer's Market Blog: July 11, 2006 Edition

Strategic Insights

— 1 min read

Schaeffer's Market Blog for July 11, 2006, provided insights and commentary on various stocks, including Cisco Systems (NASDAQ:CSCO), Best Buy (NYSE:BBY), Home Depot (NYSE:HD), General Motors (NYSE:GM), and KLA-Tencor (NASDAQ:KLAC). The blog highlighted the market activity, technical analysis, and potential trading opportunities for the mentioned stocks.

Key Takeaways:

  • The July 20 call option of Cisco Systems (NASDAQ:CSCO) was popular in the options pits, with a block of 10,000 contracts trading at a price of a nickel.
  • The AMEX Airline Index (XAL) dropped nearly four percent in the morning, with Continental Airlines (CAL), AMR. Corp (AMR), and U.S. Airways Group (LCC) affected by a Merrill Lynch downgrade.
  • The retail sector was weak, with the Retail HOLDRs Trust (RTH) ETF down over one percent and Best Buy (NYSE:BBY) and Home Depot (NYSE:HD) getting hit hard.
  • General Motors (NYSE:GM) options were trading actively, with the January 2007 22.50 call and put options seeing significant volume.
  • KLA-Tencor (NASDAQ:KLAC) announced beating June bookings and forecasting orders up ten percent, sparking a broad-based rally.
  • The Dow Jones Industrial Average (DJIA) recovered from a 55-point drop to be around even after the announcement.
  • Goldman Sachs (GS) was mentioned as having a weak technical picture and high level of optimism, making it a potential bearish play.

Statistics:

  • The AMEX Airline Index (XAL) dropped nearly four percent.
  • Continental Airlines (CAL) dropped 4.2 percent.
  • AMR. Corp (AMR) dropped 4.8 percent.
  • U.S. Airways Group (LCC) dropped 7.3 percent.
  • The Retail HOLDRs Trust (RTH) ETF was down over one percent.
  • Best Buy (NYSE:BBY) was hit hard.
  • Home Depot (NYSE:HD) was also hit hard.
  • KLA-Tencor (NASDAQ:KLAC) was up over five percent.
  • The AMEX Semiconductor HOLDRs Trust (SMH) was up two percent.

Sources:

  • Schaeffer's Market Blog
  • Schaeffer's Investment Research (www.SchaeffersResearch.com)
  • Bernie Schaeffer's Option Advisor
  • Forbes
  • Barron's
  • JMP Securities
  • Merrill Lynch

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