Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz Bits: Dow, Nasdaq Hit Hard


Your daily Buzz highlights...


Editor 's Note: This is a small sample of the content available on the Buzz and Banter

Earnings Report - MV News
  • Kohl's (KSS) reported Q1 EPS of $0.48 vs $0.46 cons on revs of $3.18 bln, which the company reported on May4.
  • Analog Devices (ADI) reported Q2 EPS of $0.41 vs $0.40 cons on revs of $643.9 mln vs $643.7 mln cons.
  • Nvidia (NVDA) reported Q1 EPS of $0.23 (in-line) on revs of $681.8 mln vs $660.8 mln cons. Non-GAAP gross margin was 42.5%.

Flashback! - Bill Meehan - 3:43 PM

This day in market history...
  • Closing levels 1 year ago
    • DJIA: 10,300.25
    • S&P 500: 1171.11
    • Naz: 1,971.55
    • Crude: 50.39
    • Gold: 426.90

This day in Minyanville history...

  • n '03, we celebrated Mother's Day and Toddo shared a story from his past while expressing his sentiments in Ten Gallon Hat

In other news...

  • In 1974, Steely Dan released "Rikki, Don't Lose that Number" and now the song is gonna be in my head for the rest of the day. Fight it off, Minyans.

Buzz in the Afternoon - Todd Harrison - 3:22 PM

  • Why doesn't the NSA open a psychic hotline? They could amaze us with their skills while helping to pay down the budget deficit?
  • I've been pinging with Herb Greenberg on the dollar. He makes a good point that most of America only views the greenback through the lens of "traveling." I maintain that, in a global economy, the ramifications are far more reaching.
  • True to form, tapes that are heavy all day tend to end that way.
  • The NDX seems to wanna kiss it's 200-day at 1650.
  • My trader's eyes, while jammy, immediately spy the financials, S&P, dollar and the metal complex, in that order, before diggin' into the deeper delve.
  • Hey Bernie Schaeffer! We'll see YOU in Vail!
  • I'm gonna peel out of partial exposure in my piggy puts as a function of discipline. And yes, I'm aware that this is the first dip.
  • I've got some into-the-close melds (with a powerful new scribe) before hoppin' to a business dinner and ending up at the Knitting Factory. Area Minyans are welcome to join us as


Position in financials, metals

Update from the "Feet on the (Barren) Street" - Fil Zucchi - 12:57 PM

Our residential "Feet on the Street" smelled something fishy just about at the peak of the housing orgy. I spoke to him at length this morning and his take is:
  • In all but the most forgotten markets, nothing will move until prices come down 20%-30%.

  • In the formerly hot condo markets nothing will move until prices come down "at least" 40% from here (50% from the peaks).

  • Sellers are insisting on putting homes on the market at last year's prices, only to slash the asking price within 2 weeks. That's creating problems even for those who put their property on the market at "today's prices," because buyers now have an expectation of prices being slashed within two weeks.

  • The end game for housing will be worse than what the S&L crisis did for commercial real estate.

Position in homebuilders

Sometimes, when things get really tough, I ask myself, "What would President Logan do?" - Kevin Depew - 11:52 AM
  • Keep an eye on the Nasdaq Equal-weight Index (.NDXE). We noted in Point & Go Figure on Tuesday that a print of 1160 would form a bull trap and now we are nearly there. Just something worth watching given the bearish divergence between the NDX Bullish Percent, which is negative, and the recent breakout in the NDXE.
  • The PHLX Semiconductor Sector (SOX) has broken a double bottom at 505 and violated trendline support that dates back to the October low.
  • Watch the PHLX Housing Sector Index (HGX). A move to 248 breaks a triple bottom.
  • The Transports met their long-term price objective earlier this week at 4900 on a 25x3 PnF scale.
  • While just about everything else has long-term technical issues according to DeMark signals and PnF work, one area that doesn't is the Drugs sector. And note that is the one of the few enjoying some green today. A move to 340 on a 5x3 scale for the Amex Drug Index (DRG) would break a quadruple top, clearing resistance going back to May 2005.
  • Isn't this redundant?

I am Mr. Rorque, your host. - Todd Harrison - 11:30 AM

The hectic frenzy settles in as our collective heads quiet the spin. A snapshot of the action finds the S&P slightly below the all-important 1315 level and the NDX well below the nearest-term support (1680). NDX 1650 (200-day) and 1635 ('06 lows) are the next levels of lore for the four-letter freaks.

Breadth is fugly, monsiour (2:1 negative on the S's and 3:1 negative for the Nazz) and our financial duopoly is supportive of further drip (watch Citi $50). Over in commodity land, the metals steadied the first wave of supply, in no small part to the fact that the dollar has reversed its early jig and is currently 10 bips to the bad.

While alotta eyes remain pegged to the inevitable all-time highs, I've got my right hand up as I manicure my risk. There are select names I wanna buy on dips (SunMicro comes to mind) and a slew on my wish list if and when some serious slippage occurs (WFT, metals, energy) but, as it stands--and as I sit--I continue to 'trade around' my short bias in the financials and have tight stops on my 'pure trades' (such as Microsoft).

Just another day on Paradise Island, my friends, so keep your eyes peeled for da plane or, as the case might be, some helicopters.


Position in C, metal equities, sunw, msft

We are getting mighty close to contract lows with 5 handle across the board….. - Bennet Sedacca - 10:48 AM

Breaking the lows in 10 year contract (104-26, now at 104-30 - just a mere 1/8 away) might trigger some stops and may finally bring those convexity sellers out of the closet. Remember, everyone seems to be a technician anyway since we don't know what M3 is (thanks, Boom Boom) and commodity prices are, well, vertical or parabolic - take your pick. What inflation?

Anyway, cycle low remains May 29th and seasonality turns positive around June 1. How convenient. We remain cautious as we have been for what seems like an eternity, but we are dusting off those buy tickets for an appearance of Mr. Snapper in a couple of weeks. We may, to be fair and in full disclosure, be buying a little bit in front of June 1, if the conditions are right. The main condition is that recent sentiment polls do not suggest that anyone has made a visit to the 'puke zone' yet - excuse my French. That, Minyans, is my feelings about the current situation, but not advice.

What will we buy if we buy? Most likely off-the-run long duration Treasuries as this is just for a bounce and munis are no longer attractive to me and I think they will lag any rally badly just as they have outperformed smartly during this decline.

Pins and Needles - Adam Warner - 10:35 AM

Lots of chatter related to publicity of an Expiration Pin study earlier this week. Quick paraphrased summary of the results: "Stocks are more likely to close at strike on Expiration Day than otherwise, manipulation definitely happens, although we offer no evidence of it."

Personally, I feel nefarious behavior has a minimal impact on pin probabilities Anyone who tries to manipulate is at huge market risk. Besides, options are a zero sum game, so it is unclear why option shorts can rig the game, while option longs, who want it away from strike, can not.

But in the real world, the more important question is what to do with possible pins, not worry about why they may happen. And if a stock trades near strike on a slow-moving expiration, and open interest is at all significant, it is likely to pin. So plan accordingly.

Morning comments... - John Succo - 9:38 AM

American International Group (AIG) had a kitchen-sink quarter: they missed on just about every front. We think they threw in as much bad news as possible laying clear the way for the new CEO. Only real earnings from property and casualty insurance were better than expected. The company took write-downs in the derivative portfolio.

This company is cheap to its peers, but probably deserves to be given the vastness of their derivative portfolio.

I see earlier comments on bulls comparing our situation to a goldilocks economy with low inflation etc. In the last year silver is up 215%, gold is up 80%, copper is up 170%, aluminum is up 77%. Golden Ben and the BLS have the official statistics sanguine through substitution, hedonics, and outright false algortithms (the higher oil prices go, the lower "core" inflation is stated). M3 is growing at an astounding 10% now despite the "show" of higher fed funds rate. Interestingly, once the discount rate has reached 6% (which it is now) there has been a correction in stocks basically 100% of the time.

Japan bank lending is soaring. It is almost exclusively due to real-estate lending. Watch carefull the dollar/yen for signs of Japan raising rates. When the yen rallies against the dollar, all that liquidiity from the yen carry will wane.


Minyanville contributors may trade securities that are discussed on the site, both before and after the articles are published and/or may have a position in such securities for either personal or firm account(s). Minyanville contributors will indicate whether he or the firm has a position in stocks or other securities in any of the companies he discusses in an article. He will not disclose his or the firm's ownership of any securities issued by companies that are not discussed in an article. The disclosures will be accurate as of the time of publication of an article and may change at any time thereafter without notice to the reader.

The information on this website reflects an analysis of market conditions by Minyanville contributors and should not be interpreted as or deemed to be a recommendation to any investor or category of investors to purchase, sell or hold any security. Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Minyanville contributors will not respond to requests for individual and specific investment advice.

The views expressed on this website are solely those of the writers whose articles appear on this site and do not necessarily reflect the views of the Fund or of any other person except where expressly indicated.

Copyright 2006 Minyanville Publishing and Multimedia, LLC. All Rights Reserved.
No positions in stocks mentioned.

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.

Featured Videos