A Trade

Picked up some WFR today as the stock was down heavily after earnings that was slightly better than expected at least on the bottom line. As readers know I have had my eyes on this stock for a while. Q1 earnings was up about 100%, the stock is trading at an expected 2007 PE of 18.50 and has exposure to the hot solar power market. With a PEG under 1, this opportunity was to good to pass. The very smart James Altucher has done some interesting work on gap-down trades which further adds to the case.

A Hedge

Just sold the Jun S&P future at 1491.50 as going against the prevailing market sentiment has proven profitable in the past.

Oil is spiking on Nigeria, I am well positioned.

Google

The earnings once again blew past the expectations and propelled the whole market higher. My April puts expired OTM, which of course is the best that can happen if you are short.

I would be careful with the market at this level and I am considering to put on a hedge.

Quite Amazing...

... how quick the sell-off after February 26 has been reversed. Today financials has been leading, needless to say I am very comfortable with my Goldman Sachs position. The media is much focused on the weak dollar.

WYNN and the other US gaming stocks were on fire today as the gaming revenue in Macau increased some 45% first quarter. Of course I have been writing here about the Macau pure play MPEL. Not surprisingly the stock is up 9.5% today.

In the news you can read how Intel will support WiMax rather than 3G in new laptop chips. Nokia will release handsets in 2008 with WiMax technology. I find it remarkable how Ericsson is shunning the technology. IP is clearly the future in communication, voice and data.

Yahoo is down heavily in today's trading, it is clear where the market share is growing. Google is reporting tomorrow...

A somewhat Google-sque company is IB. The auction is open...

Portfolio and Market Update

GS is flying today, up some 3.9% after Citigroup's earnings. Some news out of Google and the stock is trading above $475. I find it interesting to note that their search market share continues to rise and is standing at an ATH.

With a leap in production numbers going forward I don't think 'sell on strength' is the right strategy for Pare.

Commodities in general are showing strength in the light of the weak dollar and the tight inventories. Silver is currently trading above the $14 mark.

I wouldn't chase the market at these levels, but rather be opportunistic in the face of any volatility as the earnings season unfolds.

Lundin Mining

LMC exploded to the upside today after it announced takeover plans. Needless to say I am very happy with today's price action in the stock. Since Cramer has been a supporter of the stock, I suspected he might say something on CNBC's 'Stop Trading!' segment that is aired just before 3pm EST every weekday. The stock gained another 6-7 percentage points after the show and I sold everything above the $13 mark. With that said I would like to add that I believe Cramer to be somewhat underestimated among more 'intellectual' groups. I might very well be back on the long side in this stock rather soon. I still have metal exposure in Boliden, even though the company is not as dynamic. As for PARE the market is clearly waiting for numbers until we'll see a fair value, the time to buy is now.

Noting that the Brent to WTI spread is at a record level both in relative and absolute terms above $4.00/barrel. This is worth some thoughts.

Also worth noting is that Google is again trading above the $370 mark.