Buzz Bits: Dow, Nasdaq Dip Into Red
Your daily Buzz & Banter highlights...
Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Earnings Report - MV News
- Texas Instruments (TXN) reported 4Q EPS of $0.40 vs $0.38 cons on revs of $3.46 bln vs $3.43 bln cons. Gross margin was 50.5%.
Bell Buzz - Todd Harrison - 3:44 PM
- I don't get the sense that alotta people are set up for further dippage. The financials are saying we may not get it but if we do, it'll catch alotta folks leaning the long way.
- That's one of the reasons I'm adding option exposure (both ways). An uptick in volatility will be profitable for the long gamma crowd.
- The other side of that trade, of course, is the drippage (theta, or time decay) of that strategy. Nothing comes for free in this world, particularly options.
- Fu-G-L-Y? We flagged the semiconductor breakdown (through the 200-day) last week and we now need to keep SOX 444 on ye radar (multiple autumn bottoms).
- Call me biased (you biased!) but I think Macke's show is getting better and better.
- A Minyan just asked me if I thought an Iran escalation was likely before the next presidential election. It took me all of two seconds to reply "yep." Why does that "matter" and why would it be on the 'Ville? Two words: energy and metals.
- Fare ye well into the bell and have a fantastic overnight session!
position in energy, financials and metals
Monday, Monday... - Jeff Macke - 3:36 PM
* Slate grey skies, bone-freezing temps and bootstomped markets? OK; I'm convinced that today is the most depressing day of 2007. The world can stop trying to persuade me now. As if that alone wasn't bad enough, the world is getting worse, based on the fact that the Dow Jones gained just over 20 pts on last year's most depressing day, which fell on January 23rd.
* Then again, if this is as bad as 2007 gets I suppose we should be thankful.
* Hewlett-Packard (HPQ) is building an R&D plant in St. Petersburg, Russia. With any luck, HPQ will have the facility up and running in time for Vladmir Putin to take it over by Christmas.
* Sweat-wicking sportswear maker Under Armour (UA) getting smacked for as much as 9% off a Barron's article? With all due respect to Minyan Mike Santoli and the WSJ gang, when a fast-grower gets smacked this hard based on the idea that the "stock may be expensive" (well... yeah...) it's a sign that the tape is looking for just about any reason to take 'em down.
Randoms!! - Fil Zucchi - 12:59 PM
Positions in NQH07, YGG07, AMD, VICR, CYMI, SIRF, BKUNA, XMSR
10's-A 'dead cat bounce?' - Bennet Sedacca - 11:51 AM
I continue to think Treasury bonds are in a cyclical (intermediate-term) bear market in the context of a secular (long-term) bull market.
I also think stocks, as mentioned earlier, could be entering a corrective phase. Normally, you could expect a run in bonds with a sell-off in stocks. But given the lack of non-U.S. buying lately of U.S. treasuries, this relationship may not occur as supply overtakes demand. Consider this, OPEC sold $10.1 billion of Treasuries in the three months ending in December as crude tumbled.
See the chart here. Natural resistance was at 106-20 in 10 years futures/4.82-4.83% in 10 year yields. I mentioned then that traders (not my firm) would cover there and they did. A move to 4.7% or 107-24 in 10 year futures wouldn't be surprising...
But if so, that would be a nice place to fade 'em (short) with defined risk above 108-16.
Or a position in TLT to the dark side. My firm is defensively positioned now but would sell more on any rally. A bounce towards 89 in TLT, IMHO, is a sale.
Position in treasuries
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter