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DRJ's Blog

December 16, 2012

 Folks, we are extremely proud of the work our team, led by David Russell, has done to bring you our newest offering; Research Lab. This will be available on the free side of OptionMonster, and you will see it there and on CNBC in the coming weeks.

Pete, Guy and I believe the way the data is broken down, winners and losers by sector, as well as weekly most active option scanners help us find the best opportunities in the markets every day. 

Here are the winner and loser sectors followed by our commentary:

 

 winners

 

 losers

 

In the last week we have seen leadership in solar, metallurgical coal, rare earth, Hep-C drugs and China Internet stocks. Each is interesting in its own respect.

Solar was badly beaten down for the last year, but has been bottoming since the summer. It’s also heavily focused on China.
Met coal was also down big, but has been bottoming and is now rebounding as China picks up. (China PMI better than expected Thursday night... the previous week retail sales were strong. The China domestic-demand story is beginning to come together.)
Rare earths are another China play, and have also been beaten down hard.
Hep-C is a new group (ACHN, VRTX). Hep-C is a major disease, affecting 100mln+. That makes it similar to obesity drugs (ARNA, VVUS, OREX). Those rallied hard in the first half of 2012. Are these now poised to do the same?
China Internet stocks have also been beaten down, but are now coming back.

The worst groups also interesting:
Firearms: The run appears to be over now that Obama is reelected.
iPhone suppliers: Apple is dragging on much of tech. AAPL was 6th worst performer in the Nasdaq-100. AVGO was the worst, BRCM, QCOM the 4th and 5th worst.

Overall themes:
China is coming back
Global growth coming back (iron ore up big in the last week as well)
Hep-C is a new group to watch.

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