Daily Stock Pick of the Day - Thurs., Oct 7, 2010

A day after stocks rose from the depths of the prior days lows, stocks closed mixed today.  The Dow rose  23 points, .21%, to close at 10,967.  The S&P 500 closed almost even 1,159.  The tech-heavy Nasdaq closed down 19 points, .07% and closed at 2,380.

Stocks in the news today included gold and materials stocks.  The gold ETF (GLD) closed toward it's highest level at $131.45.  Copper also hit new highs today in light of a weaker US dollar.  Material names like Freeport McMoRan (FCX) and US Steel (X) each tacked on almost 2% in fast trade today. 

What was interesting to me was word that Constellation Brands (STX) tacked on 4% today after they reported a higher than expected quarterly profit.  Constellation Brands is a wine company with a stake in all major markets including the US, Canada, UK, Australia, and New Zealand.  They also own a number of premium spirits in their portfolio.  It's interesting to me that, while in one of the deepest recessions this country has seen, people still open their wallets for their libations.  Today's action on the chart looks crazy, but it's volume activity shows that it's being accumulated by the big investors.  Still, I think this is one worth watching.  If the stock settles in around the lower $18 range, it would be a good entry point as it will probably test the $19-$20 range again after that.

As alway, stay cautious and happy trading!

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