Buzz Bits: Dow and Nasdaq End Up
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Bell Buzz! - Todd Harrison - 3:27 PM
- You wanna see some interesting action? Yahoo! (YHOO), which is off a deuce and trading with at $27-handle.
- Could this rally last for a bit? Sure, this is the Minx, we're all just pawns in her game.
- Am I gonna carry tape exposure home? Nah, particularly given that I'll be away from my turret tomorrow. I was short drillers coming in, covered the opening lows and got long some beta names. If a broken clock is right twice a day, I'm not gonna tempt fate.
- Besides, while I bought those names in the hole, I'm not loving how Baidu (BIDU) is acting given the jig. It was that or Google (GOOG) (along with Apple (AAPL)). I share that lest you think I'm feeling good about my trading. I learned a long time ago to stay humble or the market will do it for you.
- For the second year in a row, Syracuse will be NIT bound. With a little luck, we may be able to secure our title as the 65th best team in the land. Sweet.
- So yeah, I'll be southbound tomorrow and away from all things ticking or flicking (I hope). As such, lemme take a quick moment to thank ye all for all ye do in making Minyanville what it is. We got something special here and it wouldn't be without you.
- Fare ye well into the bell.
What Happened? - Ryan Krueger - 3:07 PM
If you're wondering what happened to Humana (HUM), you're in good company – or at least that's what some analysts hope their managers think – considering it was one of the top three Health Care stocks measured by estimate revisions higher in February.
I think the bigger picture is truly frightening - nobody wants to pay for Health Care. Furthermore, it turns out that the accused profiteers like insurance companies have so little room for error that any mis-priced product against rising claims can crush them.
Assuming a survival of the species through the de-leveraging process which, depending on the hour, I suppose I'd get debated on, we have a bigger worry – how we take care of these people, and the more curious issue is becoming the ability for investors to make any money doing it.
Interesting tiny story on the back pages this week has one of China's top medical device makers buying out an American company's patient monitoring system.
Are we seeing a long capitalism / short socialism trading pair change addresses?
S&P Stating "Worst Is Over" - Minyan Peter - 2:50 PM
Several news sources have suggested that today's rally is a function of an S&P statement that the worst is over. To be clear, S&P stated that the market is near writing off S&P's target of $285 billion in losses for subprime. Bloomberg suggests that $188 billion has been written off so far, which still leaves $100 billion to go to reach S&P's target.
Further, S&P states that its $285 billion in loss figure holds only if "performance of subprime borrowers stabilizes and risk premiums for uncertainties dissipate."
Finally, S&P goes on to say that any positive effect "will be offset by worsening problems in the broader U.S. real estate market and in other segments of the credit market."
To me, at least, this is hardly a "the worst is over" statement.
Position in SKF
Dollar and Yen Relations - Cody Tafel - 10:10 AM
With the US Dollar plunging to a new 12 year low versus the Japanese Yen this morning, I wanted to update fellow Minyans on my long Yen call.
Overnight the dollar actually traded below par (100) to the Japanese Yen and as credit fears abound this would be a good time to take partial profits on long Yen positions as it has reached my first near term target. Ditto Gold at $1000. Longer term, I still think the Japanese Yen can trade much higher, but I would still advise taking partial profits here, especially if you listened to my call to add in the low 0.90's. We certainly are not out of the woods in this credit crisis, and the Fed is digging itself quite a hole at the expense of the dollar. These are very interesting times, and I emphasize the importance of the Minyanville community in expanding all of our financial knowledge! Be careful out there…
I would like to thank Katie Townshend of MKM Partners for pointing out the TD Sequential buy signal on the weekly chart of the USD/JPY cross, which shows potential exhaustion of the near term downtrend of the US Dollar against the Japanese Yen. See the chart below...
Click to enlarge
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