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Buzz Bits: Dow, Nasdaq End Week on a Down Note


Your daily Buzz highlights...

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

Flashback! - Steve Spyder Reiter - 2:30 PM

This day in market history...

  • Closing levels 7 years ago:
    • DJIA: 10,787.80
    • Naz: 2,564.98
    • S&P500: 1,301.93
    • Gold: 259.70
    • Crude: 21.54

This day in Minyanville history...

  • In '04 Toddo looked ahead to the first Minyans in the Mountains retreat in Crested Butte in "Minyan Mountain Magic."

In other news...

  • In 1984 Carl Lewis duplicated Jesse Owens' 1936 feat, winning four Olympic track golds.

Where to Go Now? - Kevin Depew - 12:55 PM

Snuck away from MIM3 for a moment to try and get out a market update and hammer out a few quick thoughts.

Steve Shobin, Rod David, Scott Reamer and I wrapped up the MIM3 Technicals Panel Discussion a bit ago. Here is a recap of some points I brought out:

  • The SPX Bullish Percent remains negative as it has been since July 21.
  • The NDX Bullish Percent is in Xs, but still making lower highs. Although relatively washed out, there is still high risk given the larger macro outlook.
  • A lower risk potential entry point for NDX-related stocks may occur when that
    indicator makes a higher low. So far, not yet.
  • The DJIA Bullish Percent is negative as it has been since July 24.
  • All Bullish Percent indicators for the market share the same pattern of diminishing participation in equities since January 2004.
  • This is what I believe is part of a continuing secular topping process that began in more than six years ago. Secular tops and bottoms occur as very long-term processes while cyclical tops and bottoms tend to be more event-like.
  • Where to go now? The Consumer Staples ETF (XLP) is the best chart I see in the market current;y.
  • The problem is it's top heavy with three stocks that look very dangerous
    and vulnerable right now in my opinion: PG, MO, WMT, which together make up more
    than 40% of the ETF.
  • You have to drill further down into the 39 XLP components to find stocks that look attractive, such as General Mills (GIS), Sara Lee (SLE) and Hershey's (HSY).
  • This is simply a continuation of the risk aversion rotation that has been taking place over the past several months.

India Fund (IFN) Hammered-Opportunity Knocks - Sanjay Somaney - 12:18 PM

I just got through talking to a few sources in India and all of them said there was nothing going on there except for the usual worries about acts of terror around August 15th which is in the Indian Independence Day. That happens every year and I think this sudden hammering in IFN is a good opportunity for my firm to profit from the ignorance and fears of those that know little.

A word to the wise.

Backdate Mountain - Adam Warner - 10:52 AM

No, I never made it out to Vail. When I saw the lines from Newark Airport extending outside my front door, and I live 15 miles away, I knew it was a bad sign.

I will however stand out front this afternoon and invite all passersby to peg me with a dodgeball, sort of part pennance and part "virtual" MIM.

This whole concept of "internal investigations" into options grants was a joke to begin with. "Please allow myself to investigate......myself." But one would think the very minimum threshhold is that the "investigators" were not some of the same people that handed out the options to begin with. Apparently not.

The mainstream financial media really has to advance this issue from "legalese" and "accounting revision" to the ethics of how a practice like this that passes no "smell test" whatsoever could be so rampant.

Take that, Bin Laden! - Rod David - 10:14 AM

Thursday's sell-off was triggered by news, so market participants were able to discount the story, and then move on. It is for this reason that Wednesday night's drop of 10 points in the S&Ps was able to attract buyers. The terror news had similar effects both on Lebanon, and on Wednesday's prior-low touch, pushing one off the front pages, and pushing the other off of traders' minds.

News flash: Lebanon's still there. Admittedly less newsworthy flash: The prior low is still being tested. Just because sellers stayed away Thursday doesn't mean that sellers have retaken control.

Trending is a difficult thing to get going on Fridays. And once going, it's a difficult thing to stop. A break under Thursday's noon hour lows would confirm that the afternoon's rally was inappropriately timed, and being reversed. Otherwise, Thursday's noon hour lows are support.

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