Alpha Buys: MOT, CLS, LVLT, SUMT, TWM

Today was spent playing catch up, but I did manage to put on a few trades:

Bought:

MOT @ $5.55

CLS @ $5.56

LVLT @ $1.08

SUMT @ $3.82*

TWM @ $51.36

(*SUMT is a merger arbitrage play.)

Detailed write up posted in The PPT.

I’ve got a lot of catching up to do after taking a week off for family, friends and fun. Just know that I didn’t think of the market much, or any of you…so, sorry.

As I peruse the boatload of messages, memos and news to catch up on, I’m pleasantly met by [[CBL]], which caught another upgrade by the Goldman analyst, who now has it as a “conviction buy”—-whatever that means.

All I know is that it means money.

I’ll check back later.

Just a quick note before I head out to dinner with family….as I said last week, continue to watch the DJ Transports, as they are part of the essential element for this rally to continue. No the rally isn’t dying, but a break of the 15 day EMA on the “Trannies”could be your early warning that it might suffer its next malady.

Yesterday, it briefly flirted with an intraday break of its 15 day EMA. Today saw an intraday break below 2,914 before closing at 3,020. The 15 day EMA is now at 2,927. If we get a close below that tomorrow I will probably trade out of more of my stock positions. 

Have a good night.

I’ve been on the road since Saturday, visiting friends and family, and generally taking it easy. Last Friday, I bought more SRS and got back to market neutral. Yesterday, I took a “day off” from the market. I didn’t even look at the news, read a newspaper, or check on any stocks. The only thing I did was call my office and check on what the market was doing. Wonderful. Ended up cutting everything in half.

I will cut again by another half if we get another downer.

Be advised….don’t be a loser. Protect your hard earned gains.

In keeping with the integrity of hedging, I bought more SRS at $26.147.

Check out The PPT to see what I did with CBL. I’ll post position updates in there after market hours.

Cheers.

The market is at a critical juncture now as it pushes against resistance on many fronts. In particular, watch the DJ Transportation Index. If what the pundits are saying, that we will see the economy bottom out the second half of this year, we should see the “Trannies” breakout, as a sign of future economic activity picking up.

Right now, the transportation index is trying to work through bearish resistance.

Happy Friday.