Buzz Bits: Dow and Nasdaq End Mixed
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Bring it Home Buzz - Todd Harrison - 3:29 PM
Deep breaths as I prop a toothpick in each eye and try to focus on the close. I'm admittedly burning the candle on both ends---OK, I've tossed the entire ball of wax into the fire--but there are no complaints. My personal three-point shot into year-end is MV Kids, The Exchange and Festivus and all are on track. I'm tied to it, mind you, but that's the way I roll! Some final thoughts to tie up the week:
- After selling my trading longs into the opening jig and buying puts into S&P 1490, I'm gonna nibble a bit (sell some puts) into this downside reversal as a function of discipline. Again, I'm playing smaller than usual as a function of the market and my schedule but the mechanics of the swing are more important than the results of the at-bat.
- My sense is that alotta fund managers have piled into the high beta complex (GOOG, RIMM, APPL, BIDU) with hope of making some bang for the year-end buck. That'll either self-fulfill or be a bitter pill, depending on the price action, so make sure you define your risk rather than place blind bets.
- The bailout plan smells desperate but that doesn't mean it won't allay some near-term fears. For what it's worth and so it's said, however, it feels like a Band-Aid on a broken bone. I continue to expect mas write-downs in the financial arena and will look to add some shorts at the right levels (HBC $92, MS $60 and so on).
- We've got over 300 Minyans coming to Festivus next week and I'm so looking forward to the hugs and handshakes that await. This community is awesome and it's been way too long since we last gathered to celebrate the important stuff. We're down to tag ends on space, so you know, so if you were planning on joining us, please consider this the final Ruby wink.
- Fare ye well into the bell and have a mindful weekend, Minyans--you've earned it!
Got Healthcare? - Cody Tafel - 2:18 PM
Check out the below chart of the IYH (Healthcare iShares). The healthcare sector is close to breaking out to new highs (yes, an index close to new highs!), and also notice how well this group held up during the recent market weakness.
Notice the strong bounce out of moving average support and upside range expansion here. I would continue to look for healthcare names on the long side and expect them to continue to benefit from the current market environment well into next year. Pullbacks in the IYH to the $70-$72 range should provide excellent risk/reward buying opportunities.
Click here to enlarge.
Looking forward to seeing everyone next Friday at the Festivus!
Eyes on Q - Sean Udall - 1:15 PM
PowerShares QQQ's (QQQQ) 50 dma of 52.09: I think this number will be critical over the coming hours and days.
Not holding this break-out this morning gave the sellers a lot of fuel as well as providing a shove to those who had accumulated more long exposure during the weak days recently.
However, I expect the 50 day to be broken and once that level is taken out then the move higher could possibly be much greater than many expect. It is notable that the Q's never broke the 200 dma on the downside, even though many components did. This could in turn give many of the very weak trading components within the Q's even more fuel to the upside as they play catch up, though some of that catch up trade may not take place until after the year rolls over.
Just a gut call, but we could get the January effect back in full force for the first time in a number of years and it may not be too early to start thinking about taking advantage of that effect.
Meanwhile, back in Telecomm Land, SeaChange International (SEAC) had a real nice quarter off a very weak stock price. So its stock has exploded higher today. I would favor Harmonic (HLIT) and Arris (ARRS) from a fundamental standpoint. HLIT has pulled back a lot since it announced a fairly large secondary offering around the $12 level. The stock actually traded higher after this announcement for a couple days until falling prey to the tech pressure. I am back long HLIT earlier this week.
Additionally, not much has been said about the favorable cable ruling the other day which was favorable to the Multiple System Operators (MSOs) and should continue to help fuel robust spending by the MSOs on network upgrades.
Position in HLIT, ARRS, SEAC
GES, WFR and Decent Risk Reward - Quint Tatro - 10:36 AM
The market is hot out of the gate and it feels like people are scrambling to find new buys as we end what will go down as a very volatile and nasty month. I have been a net seller this morning, choosing to raise cash and step aside a bit.
I have also added to a retail short in Guess (GES), which is seeing a light volume squeeze this morning, but in my book is still a broken stock. Memc Electronic (WFR), an Inside the Tape stock and core of mine, is up another 5% this morning on an upgrade. I won't sell any into the move but I sure can't chase it either. The stock is a winner and will offer up a better entry if I we are patient.
It has been a decent four-day bounce and rather than press it, I feel good about bringing in the reins a bit and keeping powder dry. I am seeing many stocks set up and if we run from here, they will act well and offer up the best opportunities. It is all about.
Position in GES, WFR
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