Buzz Bits: Dow Moves Higher, Nasdaq Edges Lower
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Number 9 - Kevin Depew - 1:523 PM
- Starbucks (SBUX) reversed down on a .5x3 PnF chart after the DeMark TD-Sequential sell signal going into earnings last night, but remains above the 36.60 support level. Also, SBUX is above the nearest potential PnF sell signal at 36.
- Intel (INTC) has registered a TD-Sequential sell signal and the PnF chart shows the primary trend is negative, one of my favorite situations.
- A similar setup has occurred with Washington Mutual (WM); DeMark TD-Sequential sell signal in the context of a negative PnF trend.
- The VXO at 9.
- "How to get yourself successfully into debt and other lessons from the new real estate experts."
Verticle Development - Tom Alexander - 9:52 AM
The stock indices have been in Vertical Development (a trend) for 2 and 1/2 days. The pattern since the July low of Balance – Imbalance (Vertical Development – Horizontal Development) has been 2-3 days of trend followed by 2-4 days of choppy trading with relatively little price damage.
Yesterday's new highs in the Dec. S&P and Dec. Dow created yet the latest in a series of divergences between price and breadth, something else that has accompanied each short-term high in the present rally. The stock index futures are down in the overnight session signaling that it is likely at least a short-term top is in place.
See a chart of S&P and breadth here.
Off the charts - Fil Zucchi - 9:22 AM
The Housing Starts and Building Permits numbers are stunning even for someone such as myself who's expecting Armageddon in the housing market. The visual here is necessary to frame the magnitude of what's happening. Some thoughts on what this might mean:
- In the early '90's crack, things got really bad only after Building Permits bottomed out.
- During the bubble the builders told us that they were not building spec properties, it was all real demand. If that's the case, then it stands to reason that demand had vaporized, which is consistent with what we have been saying for too long: manias in housing have never gradually cooled. When the party ends, you can turn out the lights.
- I hear the positive spin on these numbers: if they stop building, inventory will be absorbed, and we will fall back into a perfectly balanced market without a blink. It's possible I suppose, I mean Santa Claus is only 40 days away.
- How many jobs will disappear as the real estate market "cools?"
- When will the Fed blink in the face of what's happening to housing? Will it take a financial accident?
What you need to know... - Jon Doctor J Najarian - 8:03 AM
Hewlett-Packard (HPQ) Profits Beat, Shares Ease – The computer products maker reported quarterly profit and revenue ahead of Wall Street's estimates as HPQ's net income rose to $1.7 billion, up four-fold from the year-earlier period when the company took a hefty restructuring charge.
Oil Fall Not Over! Crude fell over $2.50 per barrel yesterday and I show Texas Tea down another $0.47 this morning to sub $56! Since the July high of $78.40 crude is down some 29% and the hits just keep on coming!
Wal-Mart (WMT) Generics Go Nationwide – WMT has expanded a $4 offer for some prescription generic drugs to 11 more states in its plan to reach all 50 states by as early as January. The world's largest retailer says the program that now covers 38 states will contribute to lowering the cost of health care in and since you must pick up the generics in the store, should increase sales for the world's largest retailer.
Gap (GPS) Net Falls 11% - There are good streaks, like the ones that Michigan, Ohio State and Rutgers are enjoying and there are bad streaks, like what Gap Sores is suffering through. Gap extended their losing streak by posting lower net earnings yet again, as Old Navy and even Audrey Hepburn failed to stop the bleeding.
Position in WMT
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