Buzz Bits: Dow and Nasdaq End in the Red
Your daily Buzz & Banter highlights.
Bell Buzz - Todd Harrison - 4:09 PM
- Applied Materials (AMAT) continues to hang tough.
- Where's the capitulation? That, along with the slow, steady VXO is Hoofy's biggest cause for pause.
- OK, the credit contagion, broken technical levels and housing depression are also vying for mind-share. I was simply looking through a trading lens.
- I sense Google (GOOG) will tag $500 again. I'm unsure if I'll be there to see it.
- Love in an elevator.
- Sometimes you're gonna be the windshield, other times you're gonna be the bug. Color me gnatty dread as we put the first 20% of the week in our back pocket. It remains to seen if my quasi-stylistic shift is a slippage in discipline or a proactive adaptation.
- Fare ye well into the bell, Yo. We'll get 'em tomorrow.
UltraShort S&P Climbs to New Recovery High - Michael Paulenoff - 3:35 PM
Although the ProShares UltraShort Inverted SPY ETF (SDS) has climbed to a new recovery high at 70.52 today, my work continues to warn me that unless the buyers propel the price structure into a vertical thrust right from here, the likelihood is that the SDS will reverse from the channel resistance line and make another attempt to swoon towards the 68.00 support area, which is why I don't want to be long the SDS "up here."
Click to enlarge
Position in GOOG, SGP, MS
Semis Showing Relative Strength - Quint Tatro - 12:51 PM
Good afternoon, Minyans. The S&P has bounced off recent lows only a bit ago, which was less than a ten spot away from January intra-day lows. Breadth is around 2 – 1 negative and it looks and feels like just about everyone is in wait and see mode.
Even with a little inventory the nicks are irritating and to my own detriment I have given a few things leashes when they may have not deserved it. For each position I still own, I have a clearly defined thesis with an identified stop in mind. It is a function of price and should these stocks close below my lines I will be forced into raising more cash.
The semis are showing relative strength today and are bumping up against trend line resistance that has held for the last several sessions. On the long side, should they be the bullish canary, I would look to play either Applied Materials (AMAT) over a break of $20.50 or Intel (INTC) also above this same price point. Volume in both are relatively light but if we were to see a reflex bounce, it is where I would look to first. Should they turn around and be met with more selling, I took a small short on Lam Research (LRCX). This stock has found no buyers at all and looks vulnerable to another push. See the chart below. Either way we must have patience.
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Position in LRCX
So Are Municipals the Deal of a Lifetime? - Bennet Sedacca - 9:20 AM
I heard on TV this morning that they were. I know Bill Gross and Wilbur Ross are buying them. And those are two rather bright fellows.
But are they cheap relative to FRE 8 3/8% preferred on a 11.96% tax equivalent basis(that is where I just bought them as they go ex dividend on Wednesday)?
Are they cheap to Treasuries? Well, yes, but what isn't? Long Florida paper is trading hands on a 7.61% tax equivalent basis.
Long FNMA/FHLMC/GNMA collateral is on a 5.75% or so. So, no, I don't think they are cheap. They are cheaper than they were, but me thinks they will get cheaper. Supply is on the way. Loads of it.
By the way, the first ticket I ever wrote as a retail stockbroker in 1982 was Sayerville, NJ 13 1/2% at 100. When tax rates were like 50%. Which was a tax equivalent of 27%. Now that is cheap.
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