After a solid multi-day rally the markets are literally and figuratively running into a Nor’easter. This will not only be the perfect time for a market pause but it will also help to extend a three day weekend into a five day weekend. I would also add that next week in the Wall Street region is a big school vacation week. As such, many of the A-Teamers will be off next week. So, in the final analysis, we could be in for an extended stock market vacation. In other words, between now and Monday February 24, we should expect light volume and sluggish trading activity. The bears will get some opportunities to jack up short term volatility.
Whole Foods Reports Disappointing Results
Last evening Whole Foods (WFM) reported disappointing results for a second consecutive quarter. Recently I bought a small trading position for our Food & Restaurant Chain Portfolios. The stock looks lower by about four points today, wiping out most of our trading gains. I would sell on any bounce. I think that Hain Celestial (HAIN) should be sold or shorted off of the news. I plan on putting out some small shorts later today.
Yesterday’s women’s Olympic team sports – UK vs. Canada in women’s curling and US vs. Canada in women’s hockey were great matches. I am watching a delayed tape of the US – Slovakia men’s hockey game this morning as I write this commentary. I have a feeling that the Olympics will get some good ratings given the storm which we are getting socked with now. That is all good for Comcast’s (CMCSA) NBC Universal unit. Also good for Comcast is their acquisition of Time Warner Cable (TWC) for a reported $45 billion.
Get Ready to Invest in Walt Disney
I have been hemming and hawing about buying Walt Disney (DIS) once again for a few weeks. If we get this winter vacation pullback in the markets, I might get a better entry point. Twenty-First Century Fox (TWX) also should not be overlooked.
Stay safe and warm. I will be back on Tuesday.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long WFM — although positions can change at any time.
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