Economic News Shocks But Gives Forth Opportunity. (NASDAQ:FSLR), (NASDAQ:QCOM), (NYSE
The markets are significantly lower on a strong dollar (NYSE:UUP) and shockingly poor economic news.
Jobless Claims were released at 8:30am and showed a sharp increase to 496,000. This is now approaching the 500,000 number again, from December 2009, when the market cheered numbers near 400,000. This was a surprise to Wall Street and has caused an increase sell. Durable Goods ex-transportation was -0.6% from +2.00% in December.
After the last few days, the bad news keeps coming. On Tuesday, it was reported that the Consumer Confidence was 46.5 after expectations were for a 55 number. Then yesterday, on Wednesday, New Home Sales were reported at -11.2% shocking the markets again. It looks like a double dip is in line.
Top Plays To Watch
First Solar, Inc. (NASDAQ:FSLR) is coming into some major support on the charts at $99.00 to $99.50. Their quarterly earnings report just over a week ago did not meet Wall Street expectations, Margin pressure in the whole solar sector has put a cloud over these stocks. The stock has been crushed from a high of $127.00. A short term bounce is possible at a break of the $100.00 even number. If that does not hold, look for extreme support at $92.00 and then $85.00.
QUALCOMM, Inc. (NASDAQ:QCOM) shocked Wall Street when it reported an extremely poor quarterly earnings report on January 27th, 2010. Since then, the stock fell to master support at $37.00 and saw a solid bounce. The stock is now retracing back to what could be a double bottom. $36.50 to $37.00 could give another short term bounce. However, it is ultimately expected to go lower with a possible move to $32.75.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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