Schaeffer's Trading Floor Blog

AIG - The Plot Thickens

by 5/6/2005 10:09 AM
Stocks quoted in this article:

And just when you thought the story surrounding American International Group (AIG) couldn't get any more "curious", the New York Times runs a story today - "Insurer Ex-Chief Is Called Target of Stock Inquiry" - that says federal prosecutors are looking into whether Hank Greenberg potentially manipulated AIG's stock. Of course this follows the story of how Hank Greenberg gave two billion dollars worth of AIG stock to his wife, the continued accounting issues, and the SEC asking American International Group (AIG) to protect offshore documents....

Yet, a check of data from Zacks shows that 14 of the 20 analysts (70 percent) still rank AIG with a "buy" rating. The shares have shrugged off today's news but those with a longer-term perspective might want to keep a cautious eye on the monthly chart below as the shares are sitting on fairly important level...


Created with SuperCharts by Omega Research

<

permanent link

At the Open

by 5/6/2005 9:45 AM
Stocks quoted in this article:

My quote screen has come alive and here is what I see...

As expected, the broad market indices opened higher, while gold and bonds (the TLT) trade lower...Internet stocks are off to quick start as are oil related stocks...


permanent link

Into the Open

by 5/6/2005 9:23 AM
Stocks quoted in this article:

As we head into the open...the major indices look poised to pop higher. Gold has turned lower as the June contract looses nearly five points. Bonds are also taking a hit.

Yesterday we looked at the daily chart of the major indices and noted how the DIA, QQQQ and RUT had not yet pushed above resistance. Today gives the bulls another chance to change this so it will be interesting to see if they can gain traction today...

<

permanent link

Employment Report

by 5/6/2005 8:57 AM
Stocks quoted in this article:

The Labor Department reported that the labor market strengthened as the economy gained 274,000 jobs. This topped expectations and gave a boost to pre-open stock futures...


Chart Courtesy of Thomson/ILX

The S&P's immediately ticked higher on the news but then settled down. However, the action of the last few minutes has the June contract pushing back towards its high as it currently sits six points above fair value.


permanent link
Stocks quoted in this article:

One of the stocks in the news this morning is Pixar (PIXR) which trounced their earnings estimates last night...This is also a stock I have mentioned numerous, numerous, numerous times, but it has yet to really take-off. The sentiment profile on the stock has been encouraging for sometime and as you can see in the weekly chart below, the shares have maintained a solid uptrend which has been supported by their 20-week moving average...


Created with SuperCharts by Omega Research

I don't have today's option open interest data yet but here is what the profile looked like yesterday...

  • Percent of analysts tracked by Zacks who rate the stock with a "buy": 13%
  • Number of analysts tracked by Zacks: 16
  • Short interest as a percent of float: 22.2%
  • Short interest ratio: 6.528
  • Put/call ratio percent rank: 95.2%

As you can see, analysts are still on the sidelines while short sellers still represent a healthy level of potential buying pressure. As I said, the options open interest data is still based on yesterday morning's data, but a quick scan of yesterday's option trading volume doesn't seem to indicate a big change but I will update this once I have today's data.

The caveat - as regular readers can attest, I have been waiting for this stock to really takeoff for some time so perhaps I am just a pie-in-the-sky-perma-bull on it. But with the opinion so firmly stacked against it and the steady uptrend still in place, I don't see anything to dissuade me from that opinion...


permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.