The market got off to a quiet start and hung around slightly lower to slightly higher for the first hour or so until it slowly slid back test unchanged. It barely moved and edged higher until the Fed minutes were released and had a brief and unimpressive rally to the new highs of the day around 2145 S&P500. It didn’t last for long and although I was looking for another $5 in the S&P, I texted the buy for the SPY 10/19 212 puts and paid $ .81 for a half position. The market sold off and the SPY closed $213.71+.28 but as of this writing is trading (5:11pm) $213.23 about .49 lower. We’ll have to wait until tomorrow to decide is I add the second half on a rally, or if it breaks lower.
As I also mentioned last night Boston Brewing (SAM) looked great and we have a position with an average price of $154. It was up from the start today and closed $162.80+4.58. We have some pretty meaningful resistance from here to 168-170, but if we get a minor pullback or a sideways consolidation here I don’t see any reason to alter my objective from $180-200 on a management move to take it private or someone else to buy it. This is an industry that has gone through one of the most extensive consolidations of any I’ve ever seen.
The Stumpf news this evening may take a bit of heat off Wells Fargo, but I still don’t see any reason to flock to this name in particular. Bank of America (BAC) and J.P. Morgan (JPM) are still my favored financials. Any selloffs in these names on their shortly upcoming earnings reports would make me a buyer. If you want to spread the risk there is always the XLF for the group. CAM
Contact Information or to Subscribe to The Moskowitz Report:
Cell: (617) 827-1296