Last week was a pretty good one, despite the hoops we had to jump through – FOMC, Greece and expiration – to get to Friday’s close. The NASDAQ 100 rose 1.32% and Standard & Poor’s 500 (SPX) tacked on about ¾%. Friday’s expiration and FOG (Fear of Greece) resulted in some profit taking ahead of the weekend.
Over the weekend, talks continued on restructuring / extending Greek debt payments. Greece and its Prime Minister are running out of time and they have little or no wiggle room to work with. While June 30 is the official deadline, some agreement is likely to be struck this week. Once that happens, and I think it will, the bears will have no more reasons to scare investors from the markets. Also, I think you can play gold on the short side after an agreement is met. I would play it with ProShares Ultra Short Gold ETF (GLL)
On Friday, Zoe’s Kitchen (ZOES) got hit. The primary reason was the resignation, without reason, of the company’s CFO. To some people this raises a red flag. However, there is no reason to believe that any hanky took place. The second reason was an analyst downgrade. Neither reason negates the long term growth that this restaurant company is certain to enjoy over the next few years. We added to positions in ZOES on the sell-off.
We have a position with some handsome appreciation that will turn into long term gains later this week, at which time, we are likely to book those profits. With the proceeds we are looking to add to technology or financial sector holdings.
As for today, expect a mirror image open to the upside offsetting Friday’s derivative expiry losses. Then we are back to the waiting game in Europe, which as I expect will get resolved by week’s end.
Tonight I am headed to Yankee Stadium with a broker buddy in the evening. Then tomorrow I will take the day off to attend my son’s high school graduation and host a party at our home. Of course, I am always plugged into the markets with my wireless devices. I will be back with more commentary later in the week.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long QLD & ZOES — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant, beverage and agricultural stocks. An individual subscription to the newsletter can be ordered at www.restaurantstox.com Furthermore; Scott is also a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
– Read Scott’s intra-day thoughts and comments on Scutify for which he is a co-founder of its parent company Wall Street All-Stars, LLC
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