Buzz Bits: Dow and Nasdaq Finish Lower
Your daily Buzz & Banter highlights.
NYX adds to brand and future earnings power... - Sean Udall - 3:08 PM
I would view NYSE Euronext's (NYX) latest purchase as near term neutral but longer term quite positive. NYX is yet another high quality name selling much cheaper today than in prior weeks. My last sale on NYX was in the low $90's and frankly I'm surprised I've been able to resist adding the name back, as I thought it's been a very good buy at any price under $80.
Doesn't the value of this franchise have to get recognized at some point? PEG of 1, P/B of 2 and loads of future earnings power. Are they suffering from the Thain hangover? After his first few weeks at Merrill Lynch (MER) Thain may be thinking his job at NYX wasn't too bad.
At any rate, I keep adding quality names to the potential buy list and waiting for a discernible break in the action. The exchange stocks always suffer when the markets get hit hard, even while their trading volumes usually increase during these periods, thus helping earnings. For the higher beta crowd, Nasdaq Stock Market (NDAQ) has also gotten clobbered recently, even though the firm looks to have made some quality moves to position its exchange positively for the future.
There is a high probability that when the markets rebound the exchanges will go right along with them and could also exhibit strong quarterly reports for multiple quarters to come.
Airport Buzz - Todd Harrison - 1:37 PM
I share the following fare from the airport lounge at JFK. And I'm doing so for a second time as I just lost a long, pensive Buzz somewhere between my new workbook and its training wheels. Sigh... is anyone else having a tough week?
- Bad seasons define good fans just as bad times define good people. Yes, it's tough out there and it'll likely get tougher. Adversity builds character, however, and we'll get through this together. Heck, this is Minyanville--our characters speak for themselves!
- Denial, migration, panic? On a trading basis, we're well along that continuum. Bigger picture, the chairman of the Federal Reserve went on record yesterday saying that he doesn't foresee a recession. That puts him squarely in the first trimester.
- At stake is our collective confidence in the man and it taps the Credible Reserve. We've long said that psychology is the single most important metric and that continues to be the case.
- WaMu (WM) and Merrill (MER) stand out as green beans in red cabbage.
- Tech seemingly wants to rally but there needs to be signs of stability by the financials.
- It's a bit of a crap shoot into the bell with Hoofy waving the 'surprise cut' towel and Boo flying the redemption (forced selling flag). How do you trade 'em? With discipline, yo, while allowing for a margin of error.
- So, there I was stressing in the car, miffing that I dropped the ball by leaving early to see my grandmother in Florida. Then I got a text from a friend to tell me that her father just had a heart attack. It may sound trite, but we should never let something bad remind us that we've got it good.
- There's a lot of bad out there, but there's a lot of good as well. Perspective is huge and balance is key. Seriously, be thankful for the blessings you've got. You never know when you'll get that text.
- On that note--a positive, mindful one--I'll wish ye well into the bell. Take some time this weekend to vibe with your family, friends, pets or metaphorical Critters (if that's what you're in to!). The purpose of the journey is the journey itself!
- May peace be with you.
Was That It? - Quint Tatro - 12:08 PM
Was that it? Was that the bounce attempt after the VIX spikes 16% in one day?
Now we're puncturing lows on terrible breadth and falling into deep red territory yet again. I poked my head out of my cave with a small buy of the Q's just now, but as they are down a quick dime from my entry, I am really not sure what was the point. I'll give them some time but I sure am not going to marry them.
There continues to be no reason to do anything of significance here, Minyans, nothing at all. If and when we actually do find some footing there will be ample time to put capital back to work, but only if you have been successful in protecting that capital as we've headed lower.
I am watching the ETFs as that is about all I see on the screen that would offer me a decent risk reward entry but so far, other than this QQQQ probe, nothing is inspiring at all.
Position in QQQQ
Bullish Divergences - Kevin Depew - 8:44 AM
I want to point out two bullish divergences I am seeing in two sectors. Although bullish percents for the major indices were sharply lower yesterday (the S&P 500 Bullish Percent dropped more than 4%), two sector specific bullish percent indexes actually moved higher, according to data from Investors Intelligence.
Biotech and Healthcare both moved higher yesterday. to be clear, both of these sector bullish percents are currently negative, in columns of Os, but the move higher on a day when there were so many new sell signals in the market is a bullish divergence.
Looking at the sector bullish percents overall, there are only four sectors that are actually positive on their bullish percent charts: Drugs, Precious Metals, Protection & Safety Equipment and Gas Utilities.
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