Buzz Bits: Dow, Nasdaq Sink
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Tech Names of Fame... - Sean Udall - 4:00 PM
Small cap tech has been a lagging area of that sector. Some of this is justified but much is not. Many post EPS raids have occurred and knocked many stocks lower that delivered very solid growth, in addition to these names having solid balance sheets. Looks to me like a reining in of Beta has taken place over the last couple of weeks. One such name with tremendous growth and has suffered due to its own news as well as Beta constriction is Riverbed Technologies (RVBD). Accordingly, I've added to RVBD on today's weakness.
Even if the Fed doesn't deliver "ultra-good" news I think names of this like could hold better (or still gain) vs. many others. Acme Packet (APKT) is another name again looking interesting at current levels.
SiRF Technology Holdings (SIRF) is another chip name reporting tonight and I await that report with fear and trepidation. Seems like the rest of the world is thinking the same thing and traders are leaning hard to the negative side, thinking the last two quarters are going to repeat. Does this mean the contrarian bet to go long (or add to long) into weakness ahead of an EPS report is the statistically smart trade? It probably is, but I will sit on my hands and see if I can catch the SIRF lower after they report. If SIRF was close to $21 I would probably add ahead of the call.
Positions in RVBD, APKT and SIRF.
Bell Buzz! - Todd Harrison - 3:48 PM
- My goodness, DryShips (DRYS) is off 15% on nine million share volume? That's 35% of its entire float!
- So, crude is off 4% as stocks..and metals... and soybeans... and wheat... and corn are all lower.
- You say hash, I say out. Hash (out). Hash (out).
- Interesting how Countrywide (-5%) and the VXO (+10%) never seem to go in the same direction, eh? The former just lost sweet sixteen status while the latter can now drive.
- Why did I just have the thought that when you think that you can't afford to take a vacation is precisely when you need it most?
- MV Kid watchers should be very excited. We're rolling this puppy out in beta by the end of the week and it's gonna be a massive upside surprise. And I don't use that term loosely.
- Hump? What Hump? We're almost there, Minyans---deep breaths as we find our way.
Scouting Netscout Systems - Quint Tatro - 1:10 PM
Keep an eye on Netscout Systems (NTCT). The stock recently reported a very impressive quarter and now possesses the credentials to be admitted very high to the Investor's Business Daily (IBD) 100. Traders will often try and game this ahead of time and try and determine who is next on the list.
The stock is only missing one thing from its debut and that is the required price target of $15.00. I have been slowly building a bit here and have a loose stop on a break below $13.00. If it starts to perk up and break free, you'll know why.
Position in NTCT.
Between the Ticks - Jeffrey Cooper - 11:30 AM
- DryShips (DRYS) and Excel Maritime Carriers (EXM) are giving up some of their "spikage."
- Blue Nile (NILE) is rolling over from a third lower high and could accelerate to the downside from this pattern.
- Previously, I've mentioned the 100% Rule. Apple (AAPL) (see this morning's column) is up 100% from the last base in a relatively short period. It has not made a new high for four days since the big gap-o-rama opening on October 23. Many times I have noticed that when a stock gaps up after an extended run and does not make a new continuation high for three days it is often a sign it is running out of steam.
- If AAPL makes a new high and "soups" back below the prior high and sees selling pressure I would trail your stops on long positions tighter.
Position in NILE.
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