Bonds, Burritos, and Chips

By Fil Zucchi  JUL 20, 2012 8:35 AM

Cash keeps parachuting in corporate coffers, Chipotle takes gas, and my two favorite chipmakers head in opposite directions.


MINYANVILLE ORIGINAL It’s been a few days since I last wrote so here's a quick summary of where we stand in the corporate bond market and then a look at earnings from companies I’m involved in.

I am running out of adjectives for what is happening with corporate bonds, so I’ll just stick to some numbers: In summary, the appetite for fixed income is insatiable.  I hear what you are saying: "These are dumb loans and the buyers are going to get killed.” Yes, and yes.  But not for a while, and in the meantime the sellers have accumulated yet another $17+ billion in two days with which to do anything they want, including, for example, squeezing the life out of people shorting their equities.

On to some earnings-related items:
Have a great weekend.

Editor's Note: At Minyanville we often argue that markets and stocks are driven by four primary attributes: the fundamentals, the technicals, the structural, and psychology. In this weekly piece, trader Fil Zucchi will attempt to digest these four measures to come to actionable recommendations, but with a couple of twists: Rather than relying on standard technical analysis, he will examine the technicals through the lenses of “DeMark” indicators. And rather than highlighting straight entry and exit points for stocks, he will use options to gain long / short exposure, control risk, and generate cash flow. Investors should note: This column will be written 1-2 days prior to publication, so by the time it appears the prices of the securities mentioned may have changed.
Position in CMG, CY, and SNDK.

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