Buzz Bits: Dow, Nasdaq Gain Ground
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With my mind on my money and my money on my mind... - Todd Harisson - 2:37 PM
I step out of an afternoon meld to find BooPac rollin' down the Street, smokin' INDU and sippin' on gin and juice. Some top line thoughts as I await word on whether we're "on" for yet another crosstown meld, this one near the bell.
position in spx
Teleconference Randoms - Jeff Macke - 1:43 PM
Greetings from New Jersey where, based on the generally "Blah" tape action, it looks like I picked an okay day to be stuck on teleconferences for hours on end. You know, to the extent to which there is ever a good day to be stuck on teleconferences.
In other news...
- CarMax (KMX) was entirely unimpressive in its release and conference call. After beating the Street by 9-miles last quarter, then missing by 2-cents this quarter, it's time to wonder if CarMax lacks much control of its business or if the economy has gotten much worse in the last three months.
- Of course, "A little of both" is also a viable answer to the above question.
- WWE Chairman Vincent K. McMahon was on Fast Money last night. Suppressing (barely and not completely) my desire to do a full-on rasslin' microphone "bit" (the part where the wrestler talks about maiming his opponent), I asked him what he was shooting for as a buy-total for Sunday's WrestleMania. Vince offered "1.5", which would be a 50% gain over last year. Hmmmm...
- US Steel's (X) plan to vertically integrate into oilfield equipment with a purchase of Lone Star (LSS) calls to mind the old Soviet car making model in which trees, iron ore and oil went in one end of a factory and really bad cars sputtered out the other.
Turning Bullish on Financials - Jess Thomson - 12:40 PM
Sentiment turned rapidly bearish on the recent price collapse -- in fact, one well-known and widely-followed market-seer went so far as to declare a new "global bear market in equities" had begun.
He may be right -- down the road a bit -- but in the 'now' moment, bull markets are still in place in specific sectors and specific stocks.
One such sector where bulls appear to still be alive and well is in the financial sector. In this chart, the multi-year rise in the XLF (financial SPDR) is still intact after the recent decline, all the while being supported by rising value lines (solid blue) which are in no position to reverse down in the months ahead.
So too, recent reactions, below rising value (at A, B and C on the chart) were all strategic buys - I expect the current reaction to be tradable as well.
More details on entry levels and how to manage existing positions are available here.
Position in XLF
Sentiment Update - Bennet Sedacca - 10:42 AM
It's amazing how the AAII polls work. When the market sold off, bears spiked. As it has rallied the bearish sentiment poll has sunk to levels associated with market tops. See the chart here.
I see the good breadth today and respect it. But the trailing GDP numbers are useless in my book. Not to mention that 2.5% growth isn't exactly exciting with huge monetary stimulus. The forward numbers are lousy.
My other proprietary chart has already gone from high pessimism when I bought at SPX 1365 cash, but now is almost in extreme optimism mode again.
I think the rally fizzles.
I also wonder, if everyone wants to buy a tested low if we don't just zip right through it.
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