Buzz Bits: Dow, Nasdaq Pick Up Ground
Your daily Buzz & Banter highlights...
Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Earnings Report - MV News
- Chicos FAS (CHS) reports 4Q EPS in-line of $0.13 on revs of $446.3 mln vs. $441.1 mln cons.
Shout, shout, let it all out. These are the things I can trade without... - Todd Harrison - 3:54 PM
- Is anyone else fried or is it a function of my 4:00 AM wakeup?
- As discussed, I've "taken" the long side rentals in the brokerage space and started nibblin' on some Aunt Fannie puts with a hard stop above $56ish.
- I would characterize my posture as neutral with positive gamma and some dry powder.
- I like my longs and have some leverage on the short side. Easier to stomach after a 20%+ haircut in volatility.
- I know the Buzz blinks sometimes--it happens! Please be sure to hit F5 when your Buzz gets temperamental.
- My, look at the time. I'll see YOU on the foothills of the Hump. May peace be with you.
Position in FNM
Road to Recovery Randoms - Jeff Macke - 3:08 PM
Notes from New Jersey as the market and I both recover from some unpleasant "flushing" experiences over the last few days...
- Microsoft (MSFT) may be right about Google's (GOOG) casual attitude towards copyrights but is there anything cooler than being able to catch up on just about any sports highlight of note via YouTube?
- On a related topic, I believe Microsoft was sincerely looking out for copyright holders (as opposed to busting Google's chops) about as much as I believe the elbow-tossing Dukie was going for the ball.
- The best thing this rally has going for it is that no one I know believes we've bottomed.
- From where I'm sittin', the question is whether trading the long side until we retrace to the breakdown point (call it 1420-ish on the SPX) offers a risk/reward worth trading.
- We've got commodity stud-buck Dennis Gartman coming on Fast Money tonight at 8pm... we're all stoked about it but the Admiral is giddy.
- In the remote chance you missed the news, Stone Cold Steve Austin will referee the Wrestlemania "Loser shaves his head" battle between Donald Trump and Vince McMahon. Fan of rasslin' though I am, I'm still confused as to why shaving your head is a punishment for anyone (let alone when baldness would replace a combover).
Introducing 'zero hour'... - Bennet Sedacca - 9:59 AM
She packed my bags last night pre-flight
Zero hour nine a.m.
And I'm gonna be high as a kite by then...
Elton John-Rocket Man
No, I am not high as a kite! What is zero hour? Loosely defined it is the point at which monetary stimulus no longer has an impact on the real economy.
Credit is due to Barry Bannister who came up with this concept in 2003.
As we all know (but what the Fed no longer wants to share with us) is that M3-or M3b as it is now called has been growing at double digit rates ever since Boom Boom took office. See the chart here if you don't believe me...
And the economic numbers of late are awful. From housing to durable goods, they are awful.
It strikes me that the reason the real economy isn't following money growth is that debt service has reached the point that it needs to either (a) get paid off or (b) see rising default rates.
Whether we are there now or later is not as important as heading in that direction. It is why I am taking zero credit risk and why I am 'renting' stocks, not owning them.
It also helps to explain the bull market action in Treasuries and the inverted yield curve (short rates below long rates).
I also think it explains the reason that the FOMC will change its bias towards neutral at the March meeting and will ease by the summer or autumn.
I realize this concept is far from pretty, but to be unaware is dangerous. My goal if this unfolds is to be risk averse and then pounce as others sell.
Position in Treasuries
Morning Randoms - Fil Zucchi - 9:45 AM
- So the biggest drag to pending home sales comes from the South region where they were down almost 12%. Meanwhile, sub-prime lenders are knocking each other out to see who can get to Bankruptcy Court first. Thank goodness BankUnited Financial (BKUNA), from which we have not heard a peep in a while, has an exclusive on all the perfect-credit option-ARMS in South-East Florida.
- My screens are an ocean of green, despite some less than market-friendly data from Beeks. With 3300 more stocks up than down, it feels like Boo went AWOL for today. It would not surprise me if between today and Thursday/Friday we rally back to SP 500 (SPX) 1420-1430, which is a very tradable move, but do we need to close at least part of this morning's gap?
- While we have heard about the carnage in sub-prime and the pressure being exerted on all types of Credit Default Swaps (CDS), so far the junk market itself has been relatively resilient, and while spreads have room to widen more before becoming an issue, this move ought to have Hoofy's undivided attention.
- REIT's have been to cheap money what my 130 lbs chocolate lab is to anything that falls off the table. So is this move in the DJ REIT Index (IYR) just a hangover from the Blackstone/Equity Office Property orgy, or is there a real change going on?
Position in BKUNA, SPX, IYR
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