Buzz Bits: Dow and Nasdaq End Lower
Your daily Buzz & Banter highlights.
Minyan Mailbag: Target Practice - Fil Zucchi - 3:21 p.m.
What's your initial target on your NDX rollover?
Position in QID
Is the flattening trade over? - Bennet Sedacca - 1:58 p.m.
Note how we're coming up on the trend line for the 2's/10's steepness chart.
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A break of this line would likely come as a direct result of financial stress in the system.
I would also note some CDS, notably CIT (CIT) and Lennar (LEN) blowing out.
We continue to do loads of work in the consumer debt space and continue to find more problems, in everything from credit card loans to Harley (HOG) loans. After all, what is more of a consumer discretionary item than a HOG?
Looking to be Long the Russell 2000 ETF - Michael Paulenoff - 12:59 p.m.
During the past three months, the Russell 2000 Small-Cap ETF (IWM) has carved out an impressive base-like pattern in the aftermath of its 25% correction (bear phase?) off of the July 2007 high at 85.74. Although the 72.00 area represents serious resistance, the size of the base pattern is just about as large as the size of the Aug-Nov top pattern that triggered the powerful decline.
Under the circumstances, I will not be surprised to see the IWM claws its way above 72.00 into the 73.00 area, which is where we will see if the bottom pattern has the requisite explosive potential to propel the IWM to its "measured" target in the vicinity of 84.00. In any case, I want to be long here.
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Lunch Meat! - Todd Harrison - 12:46 p.m.
- The action thus far? Decent and firm, particularly for a Tuesday. I've rotated some risk and generally pared positions as I repeat to myself that "boredom isn't an actionable catalyst."
- I did add some Schlumberger (SLB) puts, so you know, with a stop at my entry level (up on the day). The upside to catching an initial tailwind on a position is that you can define risk accordingly and trade with a credit. If only they were all that easy.
- I still giggle whenever I hear people talking about "crack spreads."
- No, I can't believe that Memorial Day is right around the corner either.
- In today's edition of "Bottom Pickers Anonymous," we'll be discussing the homebuilders, which are off between 4-7% each.
- So you know and so it's said, we're gonna hold off on MIM4 as it's our collective sense that hosting a high ticket event is bad form into the teeth of a recession. Instead, we're gonna focus our attention on the December Festivus to bring our community together in the spirit of giving back to those in need. As Minyans, we trust you understand the thought process behind the decision.
Position in SLB
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