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Buzz Bits: Dow and Nasdaq End Mixed

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Your daily Buzz & Banter highlights.

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Turn Those Machines Back On!!! - Todd Harrison - 2:20 p.m.

I hear ya Mortimer, trust me I'm trying! After returning from a lunch meld with President Fish -- who steps off the desk in the middle of a day, honestly! -- I return to my turret to find Hoofy putting on a brave face. Hey, we trade prices, not set them, and we can learn a lot just by watching. Some top-line vibage:
  • Market breadth, which was Boo's chief beef earlier, is now working 9:5. Dolly Parton would be proud.

  • Speaking of which, while Pep was positioning Ben Bernanke's Bank Shot Bracket on FBN's America's Nightly Scoreboard last night (he's on all week), he was asked "Dolly Parton, buy, sell or hold?" His repsonse? "I'll hold her." Noice.

  • Note the reversal of fortune by Aunt Fannie and Uncle Freddie. They're the relatives most likely to fall down drunk when reality bites so their actions speak louder than words.

  • Hey, we're social and they have a network. It's a natural fit!

  • I'm not sure if I miscommunicated earlier (A.D.D and all) but Phoebe is fine and healthy. It just so happened that this week was her (and Zoë's) annual check-up and given recent events, she earned herself an all expenses paid trip to the doctor. I'm happy to report that she's in fine health (all 15 lbs of her) and we're currently contemplating additions to the clan.

  • Oh, the tape? As discussed earlier, I'm doing a bit less as I trade around some situations and accumulate dry powder for when Winky and I see the white's of thy eyes. I'm likely outie Thursday and Friday and, as such, I'm in 'hit it to quit it' only when it fits.

  • As always, I hope this finds you swell. Pork chops and apple sauce. Swell.

    R.P.


Tech Thoughts - Sean Udall - 1:47 p.m.

While everyone probably knows already... Oracle (ORCL) is the big earnings report this week.

Sirf (SIRF) and stops: I was last stopped out of SIRF in the high teens -- today the stock is under $5 on another warning. And SIRF was the "known" leader in its space. However, the lessons to take away here is; 1) Using some sort of loss protection is recommended when investing/trading in risky areas, 2) Tech names that largely rely on a single product area usually carry the most risk, 3) Competing against much larger rivals with deeper pockets is never easy, 4) Marketing muscle in the Tech space is simply huge. More on this over the next few weeks/months.

While I'm not buying SIRF here I do think the potential for the firm getting acquired just increased dramatically given the stock is now selling close to 2 times cash.

Infinera (INFN) has made a nice move off lows. I still like the name a lot and feel I should get longer on weakness. Verizon (VZ) and AT&T (T) buying all that spectrum may have some significant future spillover effect into the companies that provide meaningful improvements in "core" bandwidth. So even while Cisco (CSCO) and Juniper (JNPR) are rising with the general tech lift, they may be also getting some confirmation of strong continued long term spend from the global ISP's.


No Center of Gravity - Mr. Practical - 10:08 a.m.

This is not just a volatile market, it's a non-functioning market.

Volatility is the antithesis of liquidity. Volatility is so high because there is no liquidity. There is no liquidity because debt is contracting.

Central banks are doing desperate things to provide liquidity. I wouldn't be surprised if they soon come in and sell an infinite number of puts into the market. See Ben, others can come up with some crazy ideas too!

More than that, stocks have no center of gravity. Normally, mutual funds know where they want to buy stocks. But mutual funds have no cash either. Stocks are gyrating around every story because the financial system is on the brink of something very significant.


What if I told you... - Bennet Sedacca - 10:23 a.m.

That the only better technician than Elmer is Boom Boom.

Elmer was renowned for 'surprise' rate cuts during option expiration weeks. By doing that everyone that was short all sorts of out of the money calls has to scramble and cover.

This time around, The Fed and Boom Boom really hurt a lot of folks in the CDS market in the last 10 days. CDS in brokers and banks are collapsing. Maybe they overshot to the upside into the Bear (BSC) abyss? Perhaps.

But considering the CDS market is nearing $50 trillion this caused some folks some serious pain and helps explain why the Treasury market is acting so odd. But below I show the senior Lehman (LEH) 5-year CDS courtesy of Bloomberg.


Click to enlarge



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