If you're of the mind that affluent consumers will start spending again, and with the holiday shopping season upon us, that might be a good bet to make, the ETF Professor has an ETF you might be interested in.
The Claymore/Robb Report Global Luxury ETF (AMEX: ROB) counts many luxury retailers among its top holdings, including Coach (NYSE: COH), Luxottica (NYSE: LUX), Polo Ralph Lauren (NYSE: RL), Tiffany (NYSE: TIF) and Wynn Resorts (Nasdaq: WYNN).
ROB has been battered over the past couple of years as even the wealthy have reigned in discretionary spending, but ROB is up close to 60% year-to-date. Impressive, but that lags the performance of Coach and Tiffany.
ROB's geographic exposure is pretty diverse, with France being the most represented country at almost 27% of total holdings. The U.S. accounts for 25.5% and Germany 14%.
The Professor warns you that ROB is thinly traded, but if you're willing to lay a bet on increased discretionary spending on fancy goods, then ROB is the way to go.
Coach (NYSE: COH) opened at $36.00. So far today, the stock has hit a low of $33.90 and a high of $36.02. COH is now trading at $34.15, down $1.84 (-5.11%). Over the last 52 weeks the stock has ranged from a low of $11.41 to a high of $37.10. COH...(Click the story link or go to http://www.marketintelligencecenter.com for the full story)
SLV - iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.
EWT - iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.
CL - Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options in the midst of takeover chatter boosted…
Stimulus plans have been executed in most developed and emerging countries this year. The results include many exporting nations searching for additional growth inside their own boarders. US retailers including Wal-Mart Stores (NYSE: WMT) to Coach (NYSE: COH) are either forming joint ventures or with government approval, opening its own stores in these faster growing markets. One of the fastest growing domestic markets is no surprise: China. I was enlightened of the revenue potential for US companies by a simple analogy about the growth of basketball in China. At this very moment, there are more people playing basketball in China,...
With the U.S. unemployment rate at its highest in more than a quarter century–and likely to rise further–industries that depend on discretionary consumer spending may not rebound anytime soon, Standard & Poor’s says in a new report.
S&P’s Chief Economist David Wyss predicts that unemployment will continue to climb, reaching 10.6% in mid 2010. “Even with [...]
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Jack Warkenthien runs through the stocks for the day to watch. They include: Anadarko Petroleum Corp (NYSE:APC), Coach Inc. (NYSE:COH), Northwest Airlines (NYSE:NWA), and Delta (NYSE:DAL). He also runs through how high fuel prices are keeping us safer and how the current election relates to the 1960 presidential election.
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