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Buzz Bits: Dow, Nasdaq Go Green


Your daily Buzz & Banter highlights.

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

Electronic Consumer Anecdote - Sean Udall - 11:13 AM

Well I've just spent the last few hours at various electronic outlets such as Best Buy (BBY), Circuit City (CC) and a few specialty retailers in the Phoenix area. Arguably one of the toughest real estate markets in the country.

If the electronic X-Mas is going into nuclear winter (which is what the many tech stocks have been acting like) you would think this area would be ground zero.

Well based on lines that are literally so long that they wrapped around the entire interior of various stores I would say the electronic consumer is still spending vigorously, even while foreclosures have exploded in this area.

As predicted, I still think this will be a tougher than normal X-Mas for many brick and mortar retailers, while consumer electronics and online retailing should still be robust.

Hoofy vs. Boo - Minyanville Staff - 10:58 AM

A few updates from this morning's Before the Bell:

From the Bull Pen:

  • We mentioned a few bullish plays in retail: Saks (SKS), stops below $18.75, BJ's Wholesale (BJ) below $32, and Gap (GPS) below $18.40.
    SKS is trading +0.21% to $19.30.
    BJ is trading +1.59% to $34.46.
    GPS is trading -0.90% to $18.79.
  • We mentioned a play in the Dollar Bullish Fund (UUP) should traders see a reversal. Stops below $23.26. UUP is trading +0.39% to $23.35.

From the Bear Cave:

  • Retail bears could see a play in Target (TGT) as it approaches previous support and current resistance at $57.50. TGT is trading +4.25% to $56.40.
  • Those who remain bearish on the dollar can play the Dollar Bearish Fund (UDN), sell-stops below $28.09. UDN is trading -0.35% to 28.40.

News Worst at Bottoms, Best at Tops - Quint Tatro - 10:00 AM

While it sure was appealing to crawl out of bed before light and shop 'till I dropped (I'm kidding here), I decided to stay at my perch and face the light holiday trading.

Other than a few morsels here and there it is going to be tough to do anything today and if you are one of the few eying the tape understand that you are either looking for a short term scalp or looking to build for a bigger bounce.

I am actually doing a bit of both. I spent the better part of my day off pondering the market and there are two things I just can't kick despite developing a long term short side list that looks so potentially profitable it makes me giddy.

1) Despite the Dow drop and confirmed break in longer term trend, the S&P is still clinging above this area. Until this changes the S&P remains in a longer term uptrend.

2) News is often the worst at bottoms and the best at tops. This is old timers' advice passed on to me years ago and I can't help but consider that at this very juncture. Aside from actually not wanting to be in a store today, my other reason for not going out was a fear that I may be blindsided by a crashing mortgage somewhere falling out of the sky.

The point is, we remain in a longer term uptrend and it sure is negative out there. So, over the last couple of days, I have been adding some SPY and QQQQ as well as some speculate solar plays through Evergreen (ESLR) and Memc Electronic (WFR). An Inside the Tape core of mine, Fti Consulting (FCN), was initiated with a Buy from Bank of America (BAC) this morning and I am looking to add more to this stand out.

Positions in SPY, QQQQ, ESLR, WFR and FCN.

Fears for Tears - Adam Warner - 9:45 AM

So how about a chart of 90 day SPX volatility going back as far as lets me. A little tough to read, but basically each vertical line is a year. So count back, and you can see the last time volatility was this high was on the way down in mid 2002.

Volatility is very cyclical in the longer term. And it's highly likely we're early in an extended stretch of higher volatility. You can see over the course of time it made several higher highs in the last pop.

Shorter term though, probably a bit overextended.

And again, volatility does not always inversely coincide with market moves. The market did just fine during the last cyclical volatility pop in the late 90's.

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