Buzz Bits: Dow, Nasdaq Plunge
Your daily Buzz & Banter highlights.
Into the close... - Quint Tatro - 3:12 PM
The market is fading into the bell and while it is off earlier lows, the action is pretty ugly. Breadth is horrendous in the NYSE and very poor in the NASDAQ and volume is running higher than normal which will send today into the books as another distribution day.
There is always a draw to do something on a day like today, whether it be to jump in and try to catch a falling knife scooping up some Citigroup (C), or stepping in to short Google (GOOG), but it has always been my experience that less is more and patience is key.
Rather than attempt a hero trade, sit back and let the action settle down before you pick your spot. There is nothing at all wrong with sitting on the sidelines and letting others battle it out.
I have raised some more cash and continue to do just that. The nicks are irritating but it is the major damage that a trader has a hard time recovering from. Keep the losses contained and live to fight another day.
Will the semis and Cisco save the day/week? - Sean Udall - 2:43 PM
At the start of the week I would have said yes, with little hesitation. At this point, it's a coin toss as the technicals are breaking badly, while fundamentally cheap stocks are getting that much cheaper, but those stocks have been selling down for days/weeks now. The semis, which have been weak of late, are holding better than most groups today. Maybe they will provide late day support.
I said I was going to feature some small/mid cap names and I guess today's low entries are as good a spot as any.
- Acme Packet (APKT): It was featured and was a great trade before. It's getting nailed on a totally solid quarter. I'm back long the name into today's firestorm of weakness.
- Opnext (OPXT): An optics stock that also reported a good quarter and the stock has gotten smashed in the last few days. There is lots of cash per share and strong revenue growth and revenue guidance. I suspect insiders are selling into an open window period, compounded with weak market conditions for high beta and small/mid cap tech.
- Riverbed Technologies (RVBD): It's actually holding today fairly well as this is a name that could be getting crushed on a day like today.
- Jabil Circuit (JBL): In the same space as Flextronics International (FLEX), last quarter it showed improvement, is very well run financially and the stock is sitting at multi-year support levels.
Do some homework and you may find some nuggets amongst the rubble.
Positions in APKT, OPXT and RVBD.
Atlas Shrugs - Jeff Macke - 2:21 PM
Hello from New York where the market was just fine when I signed off Fast Money last night at 6. Then I start a couple days of "Me Time" and, BOOM, we get pole-axed. I guess it really was all my cheerleading holding us up over the last few weeks. Either that or the massive write-downs, subpoenas, pending Same-Store-Sales train wrecks and the end of the FOMC active-phase finally caught up with the tape. One of the two. In less self-centered trains of thought:
- When it rains at General Motors (GM) it pours, hails and drops toads on the rental car companies. Check the action in Avis (CAR), Hertz (HTZ) and Dollar Thrifty (DTG) if you want to see some pain outside the standard "Financial/ Consumer" duopoly of misery.
- Among the problems with buying stocks off the 52-week low list, as the vaunted Bill Miller suggested last week, is the fact that stocks seem to tick along on that list for months at a time. When push comes to shove, most people don't actually have 5-year time frames.
- Said another way, Citigroup (C) is down 18% since it started hitting the 52-week low list 5 days ago.
- On the happy side of the ledger (yes, there is one), check out Blue Nile (NILE) moving on up today after reporting last night. The stock spanned a 20-odd point range in the after-hours last night, which is a good reason to stick to research when the market is closed. As I said, yesterday, I love the company and the concept but, strictly from a trading perspective, this looks a good time to take the money and run on Nile.
- Today's Good Tell stock of the day is DirecTV (DTV): Moving higher on bad headline news in a terrible tape!
It's an early sign but... - Fil Zucchi - 11:56 AM
So far the dollar shellacking and equity markets weakness did not bother long term rates, which have had a major move down. Not so this morning, as the (disorderly?) fall in the dollar and very edgy equity markets are being met by bond selling.
If we have reached the stage where the dollar needs higher rates to keep its fall from becoming a rout Boom Boom's printing presses have been effectively neutered.
Position in FXE.
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