Buzz Bits: Dow, Nasdaq Sink
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Lost and Found: My Sense of Humor! - Todd Harrison - 1:55 PM
- The MVHQ staffers bum-rushed my office following the Chicago tunage. I acquiesced with some NWA, EPMD and Floyd (in that order).
- No rest for the weary? Minyan Garrett "Leggo my" Goggin notes that the nostiest ARMs don't reset until 2010 and 2011. Noice eyes, yo.
- "Market participants will look for market based solutions." Hank Paulson, just now.
- You don't say?
- Why is it that every time I hear "Super Fund," I think of Christian Baha?
- How will mutual fund year-end manifest from a "purge the sinners, juice the winners" standpoint?
- Is S&P 1523 an intuitive level? Not to mention one that rhymes?
- The good news is that I've found my sense of humor. The bad news is that a lot of people would argue that I've got a ways to go. Either way, chill, and enjoy the journey. There are no do-overs.
What's Tech got to do with it? - Sean Udall - 1:08 PM
Given Ciena's (CIEN) strength into the Ericsson (ERIC) weakness, I think CIEN may have found a near term trading low.
I added shares earlier into the weakness and may add again as the hourlies are turning hard and a confirmation (on close) of the candlestick pattern forming today. Frankly, CIEN, Cisco (CSCO) and Juniper Networks (JNPR) have what co's like ERIC and Alcatel-Lucent (ALU) don't. I think CIEN could become fodder for take-over chatter and any such realistic price for CIEN is well above current levels.
ERIC bought RBAK last year. I think it should have bought CIEN instead or in addition to RBAK.
Acme Packet (APKT) has also gotten beaten up with market weakness of late and I'm going to use current weakness to add a little bit to that position as well.
Positions in CIEN, APKT.
Between the Ticks - Jeffrey Cooper - 11:09 AM
- Goldman Sachs (GS) has undercut the low of the breakout bar and looks like a big picture Boomerang Sell Signal or Bull Trap was sprung.
- Apple (AAPL) is a beast who wants to short it for more than a scalp, it seems. Everyone clamors into the speculative core of this market to skin a few shekels on every dip of Big Green.
- Last week I mentioned the Principle of 50/100 in relation to the IYR on a 50% retracement of this year's range. After a few days of backing and filling, stocks in the group like Simon Property Group (SPG), Essex Property Trust (ESS) and AvalonBay (AVB) have buckled meaningfully.
- Is anyone else tired of ElmerSpeak the Pipsqueak when I suspect Ann is spinning in her grave and that he may well go down in history as one of, if not the, most reviled Fedheads in history?
- Mastercard (MA) bears watching as it was telegraphing yesterday that it would be magnetized right to its 155 strike and has done so this morning.
- The S&P has marginally undercut its 20 dma. Will it do a Holy Grail off this key M.A.?
- Speaking of M.A.s, the weekly chart of the S&P has carved out a potential M.A. top just as the daily chart had done at the July high. This is the same pattern or patterns that the market traced out at the 1990 top. M.A.s on the daily, weekly, monthly all cycling in prior to the Gulf War. But there's no chance of a new conflict there now. Right?
Let the Supply Begin - Bennet Sedacca - 9:23 AM
Here we go again. This is just the way the last credit widening began, with lots of issuance from smart sellers.
Spreads have come flying in in the corporate bond space. And the issuers are taking full advantage of it.
So far today, General Electric (GE) and Wells Fargo (WFC) announced new deals at spreads way inside of mortgages. Pressure remains on mortgages as folks are selling what they can, not what they gave to. What I mean here is that as the BBB-ABX traunches slide towards 0 (yep, 0, they are now 24 or 25 cents on the dollar after being 100 in January), funds have to sell something.
And, oh, by the way, the CDO market is ready to get rocked, in my opinion, as we approach year end. Someone owns all this garbage and someone will have to mark it all to market.
I am once again shorting credit risk via financial preferreds as spreads have tightened.
Holy Cow! Did you see the TIC data? 163,000,000,000 in outflows. Wow!
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