Buzz Bits: Dow and Nasdaq End Up
Your daily Buzz & Banter highlights.
Pucker Up, Buttercup! - Todd Harrison - 3:20 PM
- You know those Schlumberger (SLB) puts I bought into the FOMC and pared during the pullback? I'm buying 'em back into this rippage. Especially with the dollar up on the day (and conscious that the dollar/asset class thang is a big picture bent).
- I'm also peeling out of some Apple (AAPL) calls as a function of discipline. As Gordon Gekko said, "If a fool and his money..."
- Baidu (BIDU) still trades sick. I'm not there anymore but any slippage into the close (which I don't foresee) will pound this puppy.
- Fast forward six months. Will the S&P look like a classic double bottom?
- Finally, if you're bored--yeah, right!--here's one of the clips from last night regarding my top five power players on the Street.
- I think I'm back to Winky Wright, Yo. I'm gonna carry home some SLB puts, Schering Plough (SGP) calls and a handful of situations. Other than that, I'm long powder, short chowder and ready for the three day respite!
- Remember Monday when we offered that crashes don't occur when everyone is looking for one? I would venture to say that a lot fewer folks are looking for one now. That's not to say I'm looking for one, per se, I'm just offering a bit of perspective as you eyeball your overnight risk profile.
- For those of you who missed me TOSSING Cody Willard when he tried to slap a sleeper hold on me during Friday night's Happy Hour in South Beach, a little birdie tells me that they're gonna replay it on tonight's show. I haven't seen it and, to be honest, I'm not sure I wanna!
- Rip it Stevie!
Position in AAPL, SLB
Headline of the Day - Scott Reamer - 2:49 PM
Just caught this headline on Bloomberg this afternoon:
*FDIC'S BAIR: FED HAS BEEN `HEROIC' IN USING TOOLS
This is from someone who oversees $54 billion in FDIC fund assets to cover 4+ trillion in deposits. That's 1.07% coverage of depositors. Or put another way, 93 times levered if it became necessary to bail out every depositor. Let's suppose the FDIC only needed to bailout a third of the depositors. Then they're only 31 times levered.
Big Day for Gold - Michael Paulenoff - 1:34 PM
Big day for gold and the streetTRACKS Gold Shares (GLD) because just about everyone believes that the Fed will cut rates 75 to 100 bps, which will crush the dollar and trigger another upleg in gold.
My technical work argues differently -- that the GLD has peaked and that "good news" will be sold at the top of the Jan-Mar channel, and the GLD will traverse towards the lower portion of the channel, now in the vicinity of 94.00.
Click to enlarge
Randoms - Fil Zucchi - 12:26 PM
- Last night Prof. Krueger asked me what I thought of the close. I answered that if today the Spiders Financial (XLF) were going to take out Friday's highs, I'd have to respect the possibility for a longer lasting bounce. We are just about at Friday's highs, but today's trading starts at 2:15 PM and what matters is the close.
- Notwithstanding, I wholeheartedly agree with Prof. Udall on NYSE Euronext (NYX). In fact, I held my nose and added a little yesterday to an otherwise underwater position. This morning I also put on an Apr 65 / 70 call spread on a 1 long / 2 short ratio. If I get taken out at of the whole position at $70 in a month so be it.
- I am also bidding on an April 35 / 40 call spread on FCStone (FCSX) also on a 1:2 ratio, with the excess calls fully covered by stock.
- Do I think the lows are in for equities? Not by a long shot. Do I think we can trade to 1400 on the S&P 500 (SPX)? 50-50.
- If Dolby Systems (DLB) ticks in the $35's I am officially outie.
Positions in SPX, DLB, FCSX, NYX, XLF.
LEARN MORE ABOUT OUR PREMIUM PRODUCTS: BUZZ & BANTER, JEFF COOPER'S DAILY MARKET REPORT AND FLEXFOLIO BY QUINT TATRO.
EMAIL US FOR A FREE 14 DAY TRIAL TO ANY OR ALL.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter