Buzz Bits: Dow and Nasdaq End Higher
Your daily Buzz & Banter highlights.
Hatfield and McCoys! - Todd Harrison - 4:08 PM
No, not Julie--although she was Minxy--I'm talking about Fannie (FNM) and Freddie (FRE). For those who haven't watched these names today (read: for those who are enjoying life!) there is an old school family feud going down.
Fannie down, no wait--up 11%--no, flat? Freddie much of the same? I'm sorry, Richard Dawson, but that's not healthy action. These are the keepers of the mortgage gate, the velociraptors of money, government sponsored entities. That's a lot of uncertainty, for certain, with them splitting the difference at the end. Fannie up a quarter, Freddie down a quarter.
I have an ax to grind with Fannie, having been table pounding bearish since $70 but failing to capture the flag. It is, without doubt, one of the greatest frustrations of my career but, alas, placing it on my personal restricted list likely opened many other doors. Or, at least that's the post-rationalization I'm sticking with.
Either way and anyway, I believe that the potential for these companies to be nationalized is a much higher probability than most folks would currently assign. "When" and "why" remain to be seen and, at this time and at these levels, I'm not involved. I'm certainly watching 'em, mind you, but I'm not involved.
Off to a Hump Day meld. Enjoy the respite between rounds, Minyans, and I'll see you at tomorrow's opening bell.
Say Hello to My Little Friend - Jeff Macke - 3:02 PM
Hola from Nueva York where I'm gearing up for "Miami Advice", Fast Money's trip to Miami, for Friday's show. To be perfectly "Paco" with you all, I'm not a very "donde" "Espanol" "hablar-er" and I might be the only guy in all of finance who doesn't have a handy Tony Montana impression ready to roll ("roll-o?"). I'm not optimistic about my ability to blend but I'm quite confident I'll have fun. Here's what I'm watching, in addition to Scarface:
- "Boom Boom: Out Go the Lights". I'll take a twitchy, shifty, bullying Roger Clemens over Humphrey Hawkins any day. The latter is, obviously, more important but it's a much closer contest that it would first seem.
- Add Fannie Mae (FNM) to MBIA (MBI) and Ambac (ABK) on the list of companies where a quick fix is much less positive than it would at first appear.
- Dell (DELL) reports tomorrow. If Apple (AAPL) stock is getting pounded and Dell has gone into higher-end PCs what does that suggest about Dell's quarter? (Hint: no bueno.)
- I saw the stock action in Netflix (NFLX) before I read the actual guidance boost. Suffice it to say I was expecting something a little more exciting, news-wise.
- We drank McDonald's (MCD) coffee on the show last night, as a snarky way of commenting on Starbucks (SBUX) 3-hour retraining closure. With every sip of the gas-station quality Micky-D's my opinion of the golden arches coffee play downticked.
Semiconductors Looking Higher - Michael Paulenoff - 2:02 PM
During the past three sessions, the Semiconductor HOLDRs (SMH) has climbed above key near-term prior high and trendline resistance at 29.60/80, and has continued still higher towards a test of its February recovery rally peak at 30.24.
The juxtaposition of my near and intermediate-term work with the price structure argues for a thrust above 30.24 on the way to the 32.00/60 area prior to the completion of the next recovery upleg.
Click to enlarge
Tech Notes ... - Sean Udall - 1:27 PM
Yesterday the 2340 level was taken out on the NAZ and today the 2360 level has been tested. While these levels may not be that significant on the daily chart, they are significant on the 5 minute and 60 minute charts. So this mildly positive action is the walking that needs to occur before we can run.
Interesting action over the last couple days as the market has bucked a flood of bad news to grind higher. I added some Google (GOOG) yesterday and feel that near term issues will eventually get swamped by significant longer term catalysts.
The developing efforts by GOOG to monetize YouTube (still the best Web property purchase in years), could see a solution in the coming months. Mobile search and software could be huge for Google and the company is also seeing sustained growth in its emerging software applications, such as the office suite sold to enterprise customers. Additionally, it's fairly widely publicized that improvements to GOOG's algorithms are in the offing and I feel the Microsoft (MSFT) - Yahoo (YHOO) merger issues could provide a lift in GOOG's relative results for the next couple quarters.
As previously stated I think GOOG can return to or surpass priors highs longer term.
Position in GOOG, MSFT
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