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Buzz Bits: Dow, Nasdaq Drop

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Your daily Buzz & Banter highlights.

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Buzz in the Afternoon - Todd Harrison - 3:12 PM

  • The initial "vote" (on the 12-figure bailout plan) from the investment community is "not so fast" but the close is more important than the opening. Somehow I get the sense that Hank Paulson knows that.

  • While the SOX remains above the all-important "right shoulder," it should be noted that the chips have wiched under the 200-day (SOX 488.40).

  • The fun and games will really start when the tape starts violating largely held strikes that were left for naught. That's the genesis of "negative gamma."

  • Lots on our plate here at MVHQ as we ready for a few huge launches (including MV Kids and The Exchange). Apologies for any laggage but we will, as always, do our best at delivering the finest in financial infotainment. We know that the ticks wait for no critter!

  • As such, I will respectfully withhold "work to live--don't live to work" until I can offer those words without hypocrisy.

  • There goes contra-hour. Engine room, more steam!

    R.P.


Technically Speaking... - Sean Udall - 1:45 PM

Yet another Tech deal with Tektronix (TEK) getting aquired by Danaher (DHR). Interesting move by a conglomerate to acquire some technology based assets.

The market appears to be selling the EPS ahead of the news as the last two quarters seem to be what everyone thinks will happen again.

While I've certainly taken some profits of late I'm still finding good stocks to buy at very reasonable price levels.

I think near term many high momentum stocks have gotten over juiced but that doesn't mean you rush out and sell high quality stocks at low prices as many names will find ways to work higher even in a mixed market.


Watch the Set Ups - Quint Tatro - 12:49 PM

One of the things I like to do during a lull is to identify areas I think are setting up well but may need a long leash and some time to really work. I like identifying these stocks and then wading in very small in order to put them on the radar. By taking a small position, I can get a feel for the movement of the stock and I am forced to watch it constantly because it is on my position sheet and therefore, in front of my nose each and every day.

Two names I like quite a bit, that are highly speculative but setting up well on the longer term charts are Suntech Power (STP) and Trina Solar (TSL) I don't think the solar play is burned out but rather needs a bit more time to digest and work off some of the speculation that has flocked to these names. One can view the weekly chart on these two stocks and see how they have been narrowing over the last several months and may be soon ready for a break to new highs.

Because I can't get a feel for the timing on this, have no desire to rush any buys here but still want to put a smidge on the radar, I have waded in with a 1/3 position in each name. I have set lose, long stops and will give the stock time to work. Should it continue to set up and the market settles down, I will wade in a bit more and increase my exposure, however that is far down the line and not today.

Positions in TSL and STP.


The Game is Afoot? - Jeff Macke - 12:36 PM

Hello from New York where I'm kick-starting the engine after a full weekend of doing absolutely nothing work related. No e-mail, no phone, no nothin' honey. Bliss. Items of note as I work up a head of steam...

  • The circle is now complete on my involvement with Children's Place (PLCE). I mentioned the stock a week ago, suggested peeling "at least half" in this space on Friday and today, as of this very bullet point, I'm saying that I'd book it and boogie on the balance of any long. PLCE is up strongly on news that the old CEO may buy it out. Maybe he will, maybe he won't. Speculating on that point finishes second to "never own a retailer when the auditor quits and the lawsuits are flying" on my list of trading rules.

  • Like Todd-O, I saw Michael Clayton over the weekend. I also saw Elizabeth. The latter was the best movie of the weekend and maybe the best of the year.

  • Whatever you think of the other financials, I wouldn't touch Citigroup (C) long or short here. It's great corporate soap-opera. I loved Mike Mayo making a full-frontal assault on Chuck Prince last Friday and I thought Chuck doing another round of cutting potential replacements for himself called to mind another Prince, in terms of strategic placement. Gripping stuff but good theater doesn't mean good place to put your investment dollar.

    Citi has spent the better part of a decade as a value-trap, if/ then investment ("IF the company does X, then the stock will go to Y"). The risk isn't that C goes to $15; the risk is that it stays in the $45-55 range while the rest of its group rips higher. Why bother?

  • To answer today's most oft-emailed inquiry: Nope, I haven't seen the new network yet, though I have met the Naked Cowboy in Times Square a few times.
No positions in stocks mentioned.

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