Buzz Bits: Dow, Nasdaq Finish Positive
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Bell Buzz - Todd Harrison - 3:27 PM
- Is it just the Monday's? There seems to be a general malaise floating through the Street that has nothing to do with flickering ticks are trading schticks.
- The Minx continues to base above S&P 1407. Why basing? Because we're above support. If we were under resistance, it would be churning.
- BKX 115 remains squarely on the radar as we eyeball the close and set our sights on turnaround Tuesday.
- The VXN (Nasdaq vol) has quietly shaved 9% today.
- Buck? Bob? Buck? Bob?
- If I've learned anything through my career and life, it's that everything is cyclical. I try not to get too high when things are good and, conversely, I often remind myself when things are tough that this too shall pass. Ruby taught me that and as usual, he was bang on.
- While tomorrow is promised to no bull, today's action, from the breadth to the financials to the general tenor, is constructive. Tuesday will bring us Bennie and the Feds, of course, along with earnings from the Coldman's (GS). Expect the ticks to flicker much quicker.
- So it's said and so you know, I've got a 9:30 AM meld tomorrow (these media types make out like bandits, Danny). As such, and following my opening missive, I'll be out of the 'Ville for an hour or so.
- Fare ye well into the bell and enjoy the football tonight.
position in financials
Goldy-Locks - Adam Warner - 11:30 AM
Option of the Week heading into Expiration? Gotta be Goldman Sachs (GS).
You have earnings tomorrow. You have a stock chugging towards perpetual new highs at along with the Average True Range.
Volatility has acted well lately, as this chart shows. My best guestimate is that the board is anticipating about a $14 move in the stock on the number, nearly 7%.
Not sure I would really *game* the magnitude of the earnings move, as that level seems reasonable. But longer term gamma ownership in here seems like a decent play.
Position in GS
Airline Stocks - John Succo - 10:07 AM
The NYT Sunday had an article in which the chairman of British Airways alluded to the possibility of combinations between LBO firms and airline stocks.
Airline stocks are up big this morning.
If this is the reason it only proves one thing: that the market has a very short memory.
This has been tried before from Icahn with TWA to Northwest Air to the failed LBO of United in 1989.
In the history of the airline industry if you add up all the profits and losses from all the companies' net they have lost money since we figured out how to fly.
When you lever that type of volatile business you get disaster.
The only thing I don't doubt is that Wall-Street will try anyway as long as they can use other people's money.
Position in NWACQ
What you need to know... - Jon Doctor J Najarian - 8:07 AM
AstraZeneca (AZN) Downgraded by UBS – The British drug company was taken from Neutral to Reduce today as the bank said that pipeline failures are likely to drive the company into a patent expiry "wall" from 2012.
Parent of Travelocity Could Be Acquired – Just as we had the unusual activity in Expedia (EXPE) and TravelZoo (TZOO) last week, so Sabre (TSG) may be the target of an LBO from private equity groups, this according to the Wall Street Journal.
Prudential (PRU) Rejects Takeover Offer for EGG – The Herald claims Prudential Insurance rejected a takeover approach for internet bank Egg, when a report said Citigroup (C) was offering $1.8 billion. Prudential only says that an approach for Egg, an internet bank they are the primary owner of had been made, without naming the party.
More Jobs Than Expected – Friday's report that showed we added 132,000 jobs was better than expected but hourly wages were only up 0.2%, but still managed to hit a 5 ½ year high-water mark of 4.1% yearly gain.
Positions in TZOO, EXPE, TSG
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