Russell’s Weekend Recap

While many market participants are catching their collective breath after another bullish week on this long holiday weekend, I was perusing the weekend financial publications for tidbits of interest. This was between calls of ‘daddy’ from two sick little kids. They were doomed when I told their mother it appears they made it through the winter free and clear of catching a bad bug….

Options Action –

Discussed the VIX price action on Friday. Interesting quote, “VIX down 1% before a 3 day weekend is almost like the VIX being up”. What was meant by this was before a 3 day weekend, where the passage of time should have an impact on option prices and the market trading near 10 year highs, the expectation would have been for a bigger drop in the VIX index.

Hewlett-Packard – HPQ (48.62) – averages about a 3% move on earnings, recommended a put spread that would result in buying on weakness at a price of $45. This would be initiated in front of their earnings report on Tuesday.

Home Depot – HD – (38.60) – averages 3.7% move on earnings, the panel suggested a bullish play into their earnings announcement after the close on Tuesday.


Barrons –

The Trader column noted that the S&P 500 is up 100% since the market bottom in 2008 after a 10% rise from early November. The interesting stat that goes along with this is a drop of 5% since early November for emerging markets and 10% in the Chinese market over the same period. 

Financial Times Weekend Edition –

Markets section has an article on the benefits of active management. Also, a graphic in the article shows that foreign ownership of US stocks is at an all time high. Some have considered this an indicator of an overvalued US market in the past. 

Wall Street Journal Weekend Edition –

Proclaims the 2012 McLaren MP3-12C may be the best sports car ever. I was going to use part of my long weekend (and escape playing nurse) for a test drive until I saw the base price of $231,400.