Buzz Bits: Dow, Nasdaq Drop
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Flashback! - Bill Meehan - 3:15 PM
This day in market history...
- Closing levels 5 years ago:
- DJIA: 11,070.24
- Naz: 2,217.73
- S&P 500: 1,270.03
- Crude: 27.56
- Gold: 265.70
This day in Minyanville history...
- In '03, we excitedly welcomed Prof. Succo to the 'Ville and he began to teach us about the Different World of derivatives.
In other news...
- In 1944, Allied troops invaded the beaches of Normandy, France, the day became known as D-Day.
THE PAIN TRADE - Bennet Sedacca - 2:33 PM
One thing folks seem to forget about is that in bear markets, support exists to be BROKEN. Take a look at the action in housing stocks.
People are now wishing and hoping for bounces. And they will come. Here and there. But the breaking of a bubble is way different than your everyday correction. It is the removal of fear that turns, eventually, to hatred and neglect.
And it can take YEARS of busting the emotions of the bubble and the busting of all those support levels. The psychology is way different from 'typical' correction or bear - the psychology is so much stronger that the unwinding is much worse and painful. From where I sit (in the Atlanta Airport), I see hopers in this miserable area. Fundamental news has barely begun to show up on the negative side.
This, ladies and gentlemen, is the pain trade - the one that hurts the most people. Also known as the 'Roach Motel.' Where you can get in but never get out.
Moody Announces Stock Repurchase Program - Brian Gilmartin - 2:20 PM
No doubt we'll hear more commentary later today or tomorrow as the analysts digest the analyst day info, but Moody (MCO) led off their analyst day today with a sizable increase in their stock repurchase program, of about 13% of their shares outstanding at current prices.
In addition MCO affirmed the '06 revenue and eps guidance originally stated on April 26th.
The key is debt issuance volume, and John Succo's 10:17 am note caught my eye since it should be bullish for firms like Moody's.
The greater the issuance volume in corporate, municipal and structured finance markets, the higher number of credit ratings that must be assigned and the greater the revenues for MCO, Standard & Poor's, and Fitch, etc.
We're being patient and will keep you updated.
Position in MCO, index funds
Let my inspiration flow in token rhyme, suggesting rhythm - Todd Harrison - 12:31 PM
Was that Terrapin Station I just heard? Perhaps--I exercised discipline and pared some risk just as the wheels were seemingly falling of the wagon. Sure enough, a quick and dirty Snapper added some "price improvement" after the fact. Hey, there was a time that I would be putting corks on my forks but not anymore. I've learned that "wouldas, couldas and shouldas" are barriers to future profitability.
As is my style, I like to eye my mainstay tells while dancing in the guts and, thus far, they're not supportive of the Turnaround Tuesday vibe. Breadth still finds three red for each issue ahead, the homies are still a house of pain (-3.5%), the dollar remains near session highs and the S&P (don't blink) is dancing below the 200-day. There has been some green seeds in the brokerage bleeds--note MS and BSC--but they're the exception rather than the rule.
While I came in light, tight and two-sided, my performance isn't particularly stellar today. As such, I've pared a bit more and will await the a perceived edge before risking my hard earned coin. Pressing or guessing is a recipe for lessons learned and I've been there and done that. And if sharing my missteps helps Minyans avoid them altogether, then I will consider today a success.
As always, I hope this finds you well.
Ok, It's War Drobe! - Kevin Depew - 11:10 AM
- Boo has his eye on SPX 1250 as the stumble from the gate picks up a bit of steam.
- Meanwhile, keep an eye on gold (London Fix). The downside PnF target (still incomplete) is 620. Weekly and monthly DeMark sell signals remain active as well.
- Silver (basis, continuous chart) is also looking dicey over the near term. A move to 11.6 on a PnF basis would be another sell signal and we still have not seen any evidence of a buy setup in DeMark terms (daily chart).
- Note as well that the DX/Y was able to hold 83.75 yesterday, DeMark (buy) price completions remain intact there, and for the euro the opposite is the case with valid sell price completions intact.
- Todd called me early this morning before he came into the office with a quick question:
"Pepe, do you unbutton one or two buttons on your shirts?"
- Usually one.
Half an hour later he strolls in.
"Dude, I meant one button FROM THE TOP of the shirt, not the bottom of the shirt!"
Position in ES/U6, gold, silver
BernankeStock! - Woody Dorsey - 10:54 AM
While much has been made of the upcoming "Hedgestock," the real market party animal may be Mr. 'BearNanke.' Apparently, he recently completed some media training. He desperately wanted to learn how to Jawbone. Among the Credit Market cognoscenti he was known as "The Cooler."
Treasuries have been on a bearish tack from day one of his tenure. But now we must credit him with some pull in the stock market which has finally started to Rock and Roll. Hey, it looks like the Summer of Shove in stocks. It's "BernankeStock!" Bears are "Dancing in the Streets."
Pre-Market Heat Seekers from Insideoptions.com - Jon Doctor J Najarian - 9:06 AM
Ariad Pharmaceuticals, Inc. (ARIA)
ARIA is showing a nice gain in the pre-market hitting our Heat Seeker repeatedly on the offer! ARIA announced that AP23573 - its novel mTOR inhibitor - demonstrated efficacy and was well tolerated as a single agent in a multi-center Phase 2 trial in metastatic and/or unresectable soft-tissue and bone sarcomas involving 212 patients, at least 90% of whom had progressive disease. Our heat seeker is showing strong buying in ARIA moving it up as much as .57 cents from its close at $5.23 to $5.80.
Bob Evans Farms, Inc. (BOBE)
BOBE is also showing a gain on the Heat Seeker in the pre-market with a share volume of 62,709. Net sales for the fourth quarter were $397.3 million, a 4 percent increase from $382.6 million in last year's fourth quarter. Net income was $20.5 million, or $0.56 per share on a diluted basis, compared with $5.5 million, or $0.16 per share, a year ago. is popping up on our Heat Seeker showing a nice bullish sentiment. BOBE closed at $27.84 to $29.52.
American Railcar Industries, Inc. (ARII)
ARII is showing some movement to the upside 5.70% in the pre-market. ARII reported its first quarter financial results. Both the preferred stock and substantially all of the debt were retired in the first quarter of 2006 in connection with the Company's January 2006 initial public offering. Our Heat Seeker is showing ARII being bid higher and repeatedly trading higher than its close of $31.36
Position in BOBE and ARII
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