Buzz Bits: Dow Continues Run, Nasdaq Slows
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Earnings Report - MV News
- Washington Mutual (WM) reports 1Q EPS of $0.86 vs. $0.84.
- IBM (IBM) reports 1Q EPS in-line of $1.21 on revs of $22.03 bln vs. $21.85 bln cons.
- Intel (INTC) reports 1Q EPS in-line of $0.22 on revs of $8.9 bln vs. $8.96 bln cons.
- Yahoo (YHOO) reports 1Q EPS of $0.10 vs. $0.11 cons on revs of $1.18 bln vs. $1.21 bln cons.
- CSX Corp. (CSX) reports 1Q EPS of $0.50 vs. $0.53 cons on revs of $2.42 bln vs. $2.38 blnl cons.
Bell Buzz - Todd Harrison - 3:38 PM
- A few Minyans have asked for my thoughts into Yahoo! tonight. I don't have an edge, per se, but it feels higher as it probes resistance at $32. Also note the nascent reverse dandruff (positive) forming on the longer-term chart. David Lee Roth will surely be listening to the conference call!
- Given the drippage in my front month puts and the earlier sales of long side exposure, I feel...well, frisky! I also feel thin, or naked, although I still have some risk on my books. It's just that I've learned, through the years, that there's no shame in shrinkage if you're not seeing the seams on the ball.
- There's a difference between being seflish and being self-absorbed.
- Turnaround Tuesday is turning into a bag of mixed nuts. Hoofy will argue that it's healthy digestion while Boo will point to the 1.5% slippage in the XBD (brokers) and the simple fact that alotta bears capitulated when we popped through S&P 1450.
- Define your horizon, Minyans. Long-term types need not worry 'bout the near-term noise while active traders shouldn't cloud their keppe with big picture thesis.
- As I've been up since 3:30 AM--and have a very motivated trainer awaiting tomorrow morning at 6:30--I'm gonna flip my switch and focus on my growing list of to do's. I hope ye faithful had a fine session and, if not, that you've got the perspective to keep it true.
- May peace be with you.
Position in SPX
A Look at the Dollar and Euro - Sally Limantour - 11:18 AM
The last few days have produced countless dollar bashing articles and the contrary hairs on my neck have been rising. However, the Market Profile level mentioned Friday of 81850 failed and that signaled a sell signal.
Things are getting overdone in many indicators now. We are approaching a three standard deviation (SD) in the Euro with an RSI reading of over 70 while the dollar is also at a three SD and RSI is under 30.
- The G7's lack of action is being interpreted as support of the dollar decline.
- The world is all aboard lower dollar/higher Yuan.
- Retail prices in Britain were up 4.8% and a May hike seems imminent.
- The Indian Rupee rose the most against the dollar yesterday and gold priced in
Rupee is a bargain. They are big gold buyers.
Why the bailouts? - Bennet Sedacca - 10:30 AM
The 'free market' part of me says people that buy houses they can't afford and take equity lines to buy plasma TV's and boats should be allowed/forced to go bankrupt.
Social Darwinism at its finest.
And corporations, LBO firms, etc. that do deals just to do deals and lever up perfectly good companies just to generate fees should eventually suffer the same fate.
Does this make me a mean person? Heck no. In fact, I have actually been accused of "mellowing with age," whatever that means.
Why do I think there are bailouts? It is the important third year of a term with a lame duck President trying to boost his abysmal ratings, like all politicians before him. It is stimulative to the economy, his ratings and for a little while, homies and lenders.
The truth is that it just delays the inevitable, but this is an important political time. So in my book, this is the stimulus to be provided to the economy in addition to monster money growth.
I find it to be bad for the buck, bad for bonds and I am selling this bond rally with both fists. If and when foreigners stop buying $1 trillion a year of US bonds, we will all have to get familiar with the phrase 're-pricing of yields and credit spreads.' I just don't know when.
Where We Stand - Kevin Depew - 9:27 AM
Here is where we stand this morning with the major bullish percent indicators (links go to the charts available at Stockcharts.com):
- NYSE Bullish Percent: Xs (Positive), 71.5%
- S&P 500 Bullish Percent: Os (Negative), 74.6%
- Nasdaq Composite Bullish Percent: Os (Negative), 56.17%
- Nasdaq-100 Bullish Percent: Xs (Positive), 72%
The NYSE Bullish Percent remains in Xs, which means demand is in control of that area of the market. However, the much larger Nasdaq Composite Bullish Percent and the S&P 500 Bullish Percent are both still negative.
The bottom line is demand is in control of NYSE stocks and Nasdaq-100 stocks, but field position is poor and risk remains extremely high across all segments of the market.
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