Buzz Bits: Dow, Nasdaq Move Higher
Your daily Buzz highlights...
Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Bring it Home Buzz - Todd Harrison - 3:28 PM
- A rally does not a dollar make but if this is the beginning of something snazzy, it could have ominous implications for equities. A move through DXY 84.5 would be the first technical clue that strange things are afoot at the Circle K.
- As it stands, I haven't made sales in my metal holdings. In fact, after my mind meld last night, I'm comfy tucking these plays away (including Golden Star (GSS)).
- Do you think Sally Krawcheck's nickname in high school was "The CRAW!"
- They coulda taken the semis apart on the back of Xilinx. They didn't and that sends a lot about the underlying bid.
- I made a career on the Chase-Chemical deal. And I almost lost my career on Letter I-Wells.
- Friday rumortrage? Seems like old times.
- It's hard to believe that it's been a week since we were knee deep in philanthropy. And it's equally hard to believe that in a few weeks, we'll be tying a ribbon on 2006.
- Thank you for sharing your journey with us, Minyans, and enjoy the requisite two day respite.
Position in metals, gss, financials
Best Breakout Ever! - Kevin Depew - 1:34 PM
- New PnF buy signals are leading new sell signals 15 to 8.
- Overall buy signals are leading sell signals 24 to 12.
- This continues more of the same. Nearly every day there is enough underlying demand to add to net new buy signals, pushing the bullish percent indicators, and risk, higher.
- Meanwhile, take a look at this chart of the CBOE OEX Volatility Index (VXO) free from StockCharts.com.
- Although the VXO is currently off 4% on the day, this morning the VXO broke a quadruple top and violated the trend in lower volatility from the June peak.
- This is the "best" breakout for this index since June when it broke a triple top before the peak.
- By "best" I mean it's the first multiple top break since June. Note too that the VXO broke out from a similarly low level in May.
Really dumb things... - John Succo - 11:59 AM
Citi (C) is up on break-up rumors. Whatever. I am not here to comment on the tiresome cycle of companies buying up other companies and then spinning them off. In the long run that is a shell game that only benefits management.
I am here to tell you that a lot of the strength today is probably due to all those call sellers scrambling to buy stock.
I remember them selling me all of those Jan 50 calls so cheaply when they thought it was "free money." Now they for whatever reason can't accept the fact that they will get called out of their position, so they are buying stock aggressively against those calls that are now trading 5x higher.
That is the nature of selling cheap options. First of all, when you sell options you have to accept the future volatility. If you sell a 50 call then accept the fact that if it goes above 50 you will let the stock go. If you do not you are trading against yourself.
So when you sell calls against long stock make sure you are getting paid the right price for it. In today's world, funds are selling calls so cheaply the odds are very much against them.
Position in C
What you need to know... - Jon Doctor J Najarian - 8:09 AM
Bank of America (BAC) Buying Barclays (BCS)? According to the world's largest broker, Merrill Lynch (MER), the #2 bank in the US by market capitalization is about to make a bid for U.K. retail and investment-banking group Barclays in a deal that would create the world's biggest bank.
Hewlett-Packard (HPQ) Settles Civil Claims for $14.5 Million – This of course is the price HPQ is paying for its controversial investigation into board leaks. The settlement also calls for a sweeping set of governance reforms at HP, including widening the oversight of the company's chief ethics officer and appointing an independent watchdog director who will monitor the board for potential ethical and legal violations.
Apple's (AAPL) iPhone Delayed? Even though there's no confirmation from AAPL that an iPhone is even in the works, rumors of a delay to 2Q of 2007 were enough to shave 3% off AAPL yesterday before it recovered to a loss of 2%.
3M (MMM) Downgraded By Pru – The broker took 3M to neutral from overweight due to fears about the economies in Europe and North America slowing, and how long the slowdown will last.
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