Monday, July 18, 2011

Key Action Points for the Week

- Earnings season has arrived, as we see 36% of sp500 market cap reporting over the next 5 days.
- Initial Claims on Friday morning
- Europe sovereign crisis: Wednesday's Eurogroup meeting, Thursday's Euro Council.

I think the action on Thursday may be volatile, and the leadup will see some trading range action. Sell euro at 1.416 and buy euro at 1.4020.

I have an bias towards equities recovering once the US debt issues and Euro meetings come to some certainty, so I've been picking up some stocks that will benefit.

BHP, PAN have been added to my portfolio, positioning a commodities rally in the next few weeks.

I plan to add my position of SBT as it's near the bottom of the 50-60p range, with the LAD takeover talks still in process. SBT takeover is a likely scenario given LAD attempts to stay inline with WMH growing online presence with its partnership in PTEC.

PTEC will also be a buy into the results - I expect a number in line or slightly below consensus, which may trigger some profit taking - a good opportunity to get set for the quarter.