Buzz Bits: Dow and Nasdaq End in the Red
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Minyan Mailbag: Bear Stearns Trade - Sean Udall - 3:09 PM
Hey Prof. Udall,
From one Prof. to another, great eyes on the fins today. If you want to nab some Bear Stearns (BSC) however and think it can run, why try for the limit order? Why not just grab the shares?
Simple answer, asset allocation and aggression. I'm fairly well loaded with Morgan Stanley (MS) and Citigroup (C) currently so the more exposure I put on (in financials), the more selective I'm going to be about entry prices. However, BSC could really go -- I think the stock could trade in the $100 teens, as stated before, in weeks/months.
Wednesday is the wild card though. Do we get the bears tring to shake early confidence or do the bulls fight back and try to reestablish their line in the sand on several technical fronts.
If my TA indicator on the hourlies reaffirms my read from last Friday I will buy some BSC and have no problem paying $90 to do so.
Take care and have a good New Year.
Positions in C, MS
What To Expect For Early 2008 in the SPX - Bennet Sedacca - 12:50 PM
There is a definite triangle developing in the SPX.
Click here to enlarge.
While a lagging indicator, the Moving Average Convergence-Divergence (MACD) on a daily basis has turned negative along with a negative divergence.
I tend to think 2008 will start off with a down move as some stocks are getting hammered (financials, etc. that should be getting year end bounces aren't bouncing). Why? Likely because the write-offs aren't over, dividend cuts are coming as well as the need for more capital.
Some cycle work I have seen lately argues for a March-April low but that forecast is based upon the fact that years ending in 8 usually do well. At any rate, Happy New Year to all and wishing you the best in 2008.
Trading Bits - Quint Tatro - 10:49 AM
Minyans, I have shagged over 20 points since my entry of Terra Nitrogen (TNH) the day before Christmas.
I am going to be holding my shares to see how far this puppy can go however if you got a good piece, don't be afraid to take a little out of Mr. Market for some New Years Eve cash.
Along the same lines as this morning's Verigy (VRGY) add, I started China Medical (CMED) on the same principal. I like the trend line break here on volume with a stop at day low should it reverse.
To offset my long adds, I started a short in Allegheny Technologies (ATI) which wasn't able to hold last week's low and looks like it wants to revisit the low 80's. Stop here is over day high.
Position in TNH, VRGY, ATI
Outta the Gate - Kevin Depew - 10:07 AM
As the final session of 2007 kicks into gear we find the following items of note:
- Brokers leading the downside, the XBD off more than 1%, Banks not far behind with the BKX off .8%.
- Relative strength appearing in the SOX, "only" off .2%.
- Fannie, Freddie and Sallie (Mae, Mac and Mae) all three green... at the same time.
- Utilities outperforming, the Dow Utilities actually up .13% in the early going.
- Bonds higher and the yield on the 10-year looking to close out the year right at 4%.
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