Buzz Bits: Dow, Nasdaq Go Green
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Earnings Report - MV News
- Jo-Ann Stores (JAS) reports 4Q EPS of $1.05 vs. $0.99 cons on revs of $600.8 mln vs. $606.1 mln cons.
Bell Buzz - Todd Harrison - 3:52 PM
- In like a lamb, out like a chop. Not a shocker given tomorrow's big, bad unknown I suppose. My posture and position remain much the same.
- I can't believe CNBC is running ads with Bonnie Tyler songs. As if we didn't have enough song lyrics in our head!
- While volume is light, Hoofy will be quick to note the 9:5 positive breadth on the NYSE.
- Lotsa chatter as Chinese tarriffs hit the steel stocks in late Monday trading.
- Yes, I'm bitter about the Syracuse snub--it's just not right. But I'll still play Minyan March Madness as it'll help support alotta kids who need the help. I sincerely hope you do as well.
- Fare ye well into the bell, Minyans, and have yourself a mindful overnight session.
The KKR Effect - Jeff Macke - 1:47 PM
Greetings from NYC where I'm thinking the slight hassles of springing the clocks forward is more than offset by the Macke Children being unaware of the change. If it means an extra hour of quiet time in the mornings it could be years before the kids even know of the existence of Daylight Savings Time.
In other Saving news...
- KKR's $7 Billion buyout of Dollar General (DG) has put a bid under the entire group of discount dollar stores, most notably Family Dollar (FDO), up a couple bucks for absolutely no other reason than the fact that KKR is buying FDO's competitor.
Given the fact that KKR probably doesn't plan on buying all of the dollar stores, it seems a logical reach to be bidding for FDO here. As we've said before in this space, private equity can't save the whole market but it can continue to make it very hard to short otherwise weak companies.
- I've got absolutely no edge in the hoops version of March Madness but I've got my bracket filled out for Fast Money's Stock Madness already. Tune in tonight to check out the match-ups and see how your companies fare.
March VIX Madness - Adam Warner - 1:22 PM
Monday's take me a little extra time to get going. I literally forget my positions over the weekend, then come in and wonder who put all this nonsense on, lol.
The daylight savings didn't help either.
But anyway, looks like I am not the only one, we are just stuck in the mud...in everything. Except the VIX, which is oddly higher.
Why dat? Well, believe it or not, the VIX is not a perfectly constructed instrument. It fails to account for the fact that different days of the week have different characteristics as far as option pricing goes.
On (most) Fridays, market makers look at those weekend decay numbers until Monday, and lower their option bids on the knowledge that three days will elapse before the next session. This has the effect of lowering the calculated VIX on Friday, and then raising it Monday, since the actual option prices on the board have changed relatively little.
That is what I see happening today. "Real" volatility is effectively unchanged.
This does not happen every Friday though. We occasionally have some real nervousness ahead of a weekend, and a Friday bidup (like we did the week of the recent market "implosion). But all things being equal, Fridays tend to be poor VIX days, and Mondays good VIX days.
Yawn... - Mr. Practical - 10:46 AM
This is the typical response when I try to lay out for people why they need to be concerned. It is really simple in my simple mind.
When markets are lending, when credit is being created, things look good. Money is everywhere because people can borrow. This is inflation.
When markets want that debt paid back, things get ugly fast. Money dries up because people can't borrow anymore. This is deflation.
My concern stems from the fact that over the last several years it is the government stepping in and artificially "forcing" the market to lend more than they wanted to. Blame the banks if you want for greed, but they are just taking their cues from the Fed.
Now we find way too much debt in the system. Sub-prime is the first casualty as it should be. The bulls claim that this deflation won't spread. I do not believe this: everything in the economy is at the margin and one little leak can spring the dike.
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