Wednesday, April 3, 2013

Trades 1447 and 1448, HerbalLife and ORCL.

Positions Added
- Long HLF and ORCL.
I hate HerbaLife as a business, but I can't go past the reality that the SEC is unlikely to shut this business down, and the stock is very likely to get a bump through a sharebuyback or some sort of financial engineering we have been used to seeing from Carl Icahn.
ORCL took a large hit from its earnings disappointments, which I'm playing here for a gap close.
- Closed AG on breakdown of silver prices.
Broke even on this trade.

The yen surged and Nikkei dove following the Japanese PM's caution about reaching his 2% inflation target, but both are recovering (Nikkei futures at least as Tokyo is now closed). Not a softening in his hard line about devaluation, Abe's comments can be better read as "expectations management," writes David Keohan
Looking for a little bit more of a correction in the Japanese equities before adding some positions here.

Gold futures fell $25 to settle at $1,575.90/oz., near four-week lows, as strength in the dollar and rallying U.S. equities has wiped out gains logged when Cyprus began to hit the headlines. Mining stocks such as Goldcorp (GG -2.8%), Barrick (ABX -2.2%), Kinross (KGC -4.3%) and Newmont (NEM -3.7%) are down in tandem with gold prices.

Silver tanked last night, but I'm very close to adding some positions in SLV call options.

Apple (AAPL +0.7%) plans to start "production of a new iPhone similar in size and shape" to the iPhone 5 in calendar Q2, setting up a "possible summer launch," the WSJ reports. The paper adds Apple is working with partners on a cheaper iPhone with a 4" display and "different casing" than the iPhone 5, and that a 2H launch for the device is possible. Both scoops mesh with iPhone rumors (I, II, III) that have been floating around in recent months. Samsung's Galaxy S IV, replete with a 5" display, is expected to go on sale in late April and May.
This headline could be the bullish catalyst for this stock.  I recently upgraded to a samsung note 2, and after comparing the iphone 5, I would choose a larger iphone screen over the note 2.  The responsiveness of the typing and intuitiveness of iphone is still king of touch.  But nothing beats the 5 inch screen size for RSS reading, twitter feeds and emailing.

I hold a long position in NVDA.