March 15, 2011
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of nuclear service provider EnergySolutions (NYSE: ES ) jumped 13% on speculation the company will gain business from Japan's nuclear crisis.
So what: Today actually started with a slight dip, but when EnergySolutions was mentioned on CNBC's Fast Money Halftime Report, traders went crazy. As a result, volume is nearly five times the three-month average, with much of it centered on 1:00 p.m. Eastern time.
Now what: EnergySolutions has actually been falling since the nuclear issues began in Japan, and as much as I hate to say it (closing my eyes), I agree with Fast Money. At the very least, the sell-off seemed overdone based on possible contract wins in the short term. With all of that said, I am hesitant to buy this move today. Traders came in fast, and they may leave just as quickly after the pop.
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