Buzz Bits: Dow, Nasdaq Drop
Your daily Buzz & Banter highlights...
Answers I Really Wanna Know... - Todd Harrison - 3:04 PM
- Should I have sat on the sidelines after punting my puts into the opening abyss?
- Especially given the fact that I was stopped out near the highs?
- Aren't the best lessons learned as a function of experience?
- And if my mistakes can be your lessons, isn't that the best of both worlds?
- Are you watching the price action in Countrywide (CFC) (-17%) in the face of multiple brokerage defenses?
- How 'bout Granny Goldman (GS) off a deuce (2%)?
- Doesn't it still feel like someone is liquidating metal equities?
- Is 2007 the Year of the Hump Back?
- Can you STOP TRADING long enough to view what is quickly being labled the best Hoofy and Boo segment ever?
- Is any reality show better than the final hour of trading these days?
- Hello, Cleveland?
- Do you have a game plan before you step on the field?
- Conference calls? In the middle of the day? Seriously?
- How will you be remembered?
Dancing with the devil in the pale moonlight... - Sean Udall - 1:54 PM
That is what my Goldie (GS) long feels like. Despite some excellent pieces written by the other Profs, I still think there is a trade to be had. And this is just that -- a trade, as there are other financial names I would rather own for the long term. My stop is still in place, but this is more a lesson of a good entry. If you can buy something at a good relative entry, sometimes that very low price can buy you some time for some market factors to work for you instead of against you.
As for EMC (EMC), the relative value gets better by the VMC uptick. Added to EMC and feel that the next few quarters EMC will have the wind at its back.
Another interesting note is the muted selling response to what looked to be a not so good quarter out of Applied Materials (AMAT). Maybe some of these high quality tech names are getting cheap enough that bad news is having less of an impact. While I think some of the financials and other sectors in the market are justified in heading lower, I do not feel that way regarding many of the highest quality tech names. However, given current market conditions the selling does not tend to differentiate much, if at all.
I still feel we have entered a market where growth stocks selling with reasonable values based on price and balance sheet metrics could exhibit significant outperformance. One such stock that exemplifies these traits is Ciena (CIEN).
CIEN has many of the fundamental traits I look for and the recent selling has brought it down considerably. Again, hard to call a bottom and CIEN has broken the 50 day (but what hasn't), but there is also quite a bit of support between $32-34.
Position in GS, EMC and CIEN.
China Bubble Update - Bennet Sedacca - 9:25 AM
So China doesn't react to the global rout in stocks. So far, I say. So far.
Below, I have a bubble comparison (this sort of comparison helped me avoid the rout in housing and credit).
Click here to enlarge.
The similarities are stunning in terms of the parabolic nature of the charts and the duration and percentage move.
Is China a "safe haven"?
Not in my book. Look out below, me thinks.
Click here to enlarge.
View From Q - Quint Tatro - 7:51 AM
Good morning Minyans, while you're sipping on that coffee and catching up on the news flow, here are some ideas to consider for the day:
Futures are telling us that recent lows will be breached on the open. Is this the start of another whoosh down or a bear trap?
On Monday the euphoria surround the Goldman Sachs (GS) capital infusion was sold hard and quickly. It seems like everyone is focused on redemption Wednesday and has me scratching my head. I am curious if we will see the opposite reaction today should traders be leaning too heavily to one side. I am inclined to cover some shorts into the opening and will be eyeing some short term longs if we see a bounce attempt and opening lows hold. Less continues to be more and sitting on heavy cash waiting to see what happens still seems like the best course of action here.
Here are some question for you. Are you being productive during this waiting time? Are you digging into fallen stocks that may be ripe for opportunity when the dust settles? Are you still lugging around dead weight stocks that need to be cut so you can focus your attention on the future and not be concerned with laggards? If you aren't comfortable with shorting, are you ok with sitting in cash for what may be a long time if we continue to trend lower and this is the start of a real bear market?
I always find a little self introspection during a time like this can do wonders. Hang in there, today could be a very interesting day.
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