Editor's Note: This was posted in real-time on the Buzz & Banter (click for a free trial). It's being republished here for the benefit of the Minyanville community.
Good morning, Minyans. A few quick ones as the trading day begins:
- Deutsche Bank raises F5 Networks (FFIV) to buy and a $46 price target. As I buzzed in the past, I've liked this company for a long time, but at these levels, the stock price is running on fumes; as that's no different than the rest of the market; however, I'm going to continue to enjoy the ride through my long calls/short stock setup, but I'll roll my calls up.
- Speaking of the market, if they can't get them down after the move we've had and during the scary month of September, what happens when real year-end performance anxiety kicks in and traders start dreaming of Santa coming to town?
- Here it is, every technical reason you can think of for the precious one to get slammed: Perfected TDST Sell Setup, completed Countdown Sell, unconfirmed TDST break-out, and major trendline resistance. Keep in mind the DeMark exhaustion levels try to reflect the view that prices have moved enough that buying pressure and the trend should abate. If the buying doesn't dry up and the trend continues, it's a reflection of its underlying strength. If from here the price of gold were to ignore all these exhaustion patterns, not being long this puppy could well end up being the "big one that got away."
- Boo just pointed out to me that post the first day of "back to work" trading there was a veritable orgy of secondary offering announcements, and insiders can't sell stock fast enough; close, and not so dear to my heart, did you see Lazard (LAZ) dumping more than five million shares on behalf of shareholders? Eek!
- Without much explanation, last night's DeMark scans yielded Jakk Pacific (JAKK) on the long side, and Allied World Assurance (AWH), Marvell Technologies (MRVL), and Ross Stores (ROST) on the short side. Injecting my own biases (I don't want to be short low-priced tech stock and know nothing about re-insurance) leaves Jakk and Ross as a logical pairs trade.
- China is about to allocate $40 billion to nuclear-power development. One of the really intriguing names Professor Adam Michael pointed out to me many moons ago is GSE Development (GVP). It's done nothing during those many moons, so you haven't missed anything -- yet. Another not-so-intuitive backdoor play that trades as an open-ended option is General Moly (GMO), as you can't build plants without a whole lot of molybdenum in the steel. Please note the emphasis on open-ended option as opposed to solid investment.
- When -- not if -- will the dollar slide turn into a dollar crisis?
Let's be careful out there and trade to win.
No positions in stocks mentioned.
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