Buzz Bits: Dow, Nasdaq Close Higher
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Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Bring it Home Buzz - Todd Harrison - 3:26 PM
CME and Market Leadership - Brian Gilmartin - 1:05 PM
I hate to talk it till I'm blue in the face, but with the Chicago Mercantile Exchange (CME) testing its 200 day moving average today in the low $430's, it is another example of a former leader that isn't leading.
This bounce in the S&P 500 back to 1,300 has come with leadership that is entirely different than what we saw at the top on May 9th.
Watch the exchanges here: they have all sold off together, as has the commodity complex, the HMO's and the brokers.
Position in CME, S&P 500 index funds
Yesterday, all my troubles seemed so far away. - Rod David - 12:44 PM
Yesterday morning's higher highs began 10 minutes too late to be sustainable, requiring that its gain be retraced entirely. Today's mid-morning lows accomplished that, after yesterday's new cash session highs had failed to close above prior highs and formed a Double Top.
There - but for maintaining the retracement on a closing basis, and even closing under SPX 1294 (ESu 1296'25) for confirmation - goes the rally from June's lows.
The Double Top's initial target is another 15 points under its trigger, which is still 10 points above an outstanding gap that requires being filled. Bulls have a lot riding on whether today's decline is reversed before the close.
Across the Universe - Kevin Depew - 10:29 AM
The PHLX Oil Service Sector Index has broken down anew this morning as has the iShares Energy ETF (IYE). The Russell 2000 (RUT) sure is putting on a brave face, actually up on the day a moment ago, though now slipping into Red Dye. It remains a relative outperformer versus the SPX in the early going.
Minyan Richard asks about Ambac (ABK). It remains up against PnF resistance (new potential buy signal at 87). The DeMark TD-Sequential sell signal from last week remains active.
Position in SPX/RUT equivalents
Lost in Space - Adam Warner - 9:58 AM
The definition of Complacency? The VIX trickles below the Bar Mitzvah line as Black Holes target us.
But Fear not, that VIX should nudge higher as we are now T-minus one week until we get *busy* again.
I mentioned last week that SPY options were giving you basically a half price sale on any action over this slow stretch. Now? They are virtually *free*.
If we forward the calendar a week and assume the Sep 131 calls decay not a penny between now and then they still would carry a mere 12.4 volatility.
Position in SPY
Coincidence, no doubt! - Herb Greenberg - 9:51 AM
With OmniVision (OVTI) set to announce earnings Thursday, analysts can't cut numbers and ratings fast enough. Why, said the cynical one, would all of these analysts move so swiftly to downgrade and cut? Ah, I forgot, they all got smart overnight.
Disclosure: I've written critically of this camera chip maker from $19 to $13 to $30 and back down. The only reason it went to $30, on questionable earnings quality, was stock-jamming by the "in" crowd. The more things change....
What you need to know... - Jon Doctor J Najarian - 8:10 AM
Prudential (PRU) Settles Mutual Fund Scandal for $600 Million – In what is the 2nd largest payment levied against a financial institution over the practice of improper trading (trading after the bell), is also the first in the market timing scandal in which an institution has admitted to criminal wrongdoing.
Barnes & Noble (BKS) Gets Subpoena – The U.S. Attorney for the Southern District of New York served BKS a subpoena regarding its stock option practices. In a regulatory filing with the Securities and Exchange Commission, the company said it received the subpoena on Aug. 25 and it intends to fully cooperate in its response.
Boeing (BA) To Buy Back $3 Billion – BA's board approved a new repurchase plan of up to $3 billion of common stock. Since resuming repurchases in 2004, Boeing has spent about $5 billion buying back its stock.
Position in BA
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