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Buzz Bits: Dow, Nasdaq Head Higher


Your daily Buzz & Banter highlights...

Editor's Note: This is a small sample of the content available on the Buzz and Banter.

Bell Buzz - Todd Harrison - 3:45 PM

  • Professor Bennett just pinged me to ask "Whataya make of the hedgers being record long the SPU's in the face of housing, credit, oil and debt concerns?" My knee jerk response (before I could stop my fingers from typing) was "wall of worry."

  • One indicator does not a market make (if it did, everyone would follow it) but it's food for thought as we strive to see both sides of every trade.

  • I continue to "trade around" a short bias but I'm staying pretty tight as a function of the S&P action in the face of the banks and homies.

  • The risk for downside dislocation remains but, well, they've been in place for a while. As I said last week, the matches are in the hands of many but whether or not the flame is struck remains to be seen.

  • We're going vertical in the 'Ville, including more content for the mainstream investor and, coming this fall, MV Kids. Fear ye not, however--if you want nuts and guts trading stuff, the Buzz (and custom Buzzes) are gonna be all you, in real-time, every day the market strays.

  • Jugglin' hats over here---fare ye well into the bell and have a most mindful night. As my good friend told me today in the face of very bad family health news, "Life is short--enjoy it." Amen to that.


Has-Broken? - Jeff Macke - 12:14 PM

Hasbro (HAS) opened strong this morning after the company reported better than expected operating earnings and revenues. The headline "miss" was the result of a $200 million charge related to a mop-up of some Lucas options, a deal which was announced in May. There was strength in brands from Transformers to My Little Pony, 24% growth in North America and more than double that growth abroad, where there's more room for growth and the local currency doesn't go down daily (as it does here in the US).

All systems go? Not so much. After sniffing a 52-week high at the open, the stock... um... "Transformed" into a stuck pig, as far as my portfolio is concerned.

Concerns are: "profit taking", forward orders, an EZ-Bake Oven recall and mention of an obvious multiple top in the chart. I'm looking to add on weakness, in a casual way. For what it's worth, we'll have the Hasbro CEO on Fast Money tonight; if the stock doesn't show me more love I may be demonstrating the way I can morph from "Nice-ish" to "Disgruntled Shareholder" in the blink of a trading eye!

Positions in HAS

Resources to Fuel Growth - Sally Limantour - 11:50 AM

It's interesting to note that last week Bernanke said, "…such risks include 'tight use of resources.'" Going forward we will be hearing more of this phrase.

China's industrial production is 19.1% annualized and its factories are working non-stop. Beijing is forced to use tightening measures and it raised again on Friday. It helped to push up the Yuan, but the stock market did not even sneeze.

Lead continues to soar on demand from autos and supply interruptions. Since February's dip, lead has rallied 110%.

Back in October of 2005, a letter from the Energy Secretary was sent to the former chairman of Exxon, Lee Raymond, asking what the future holds for oil and natural gas. According to The King Report, Raymond has finally answered, two years later, in a 476-page study, entitled "Facing the Hard Truths about Energy". The study involved 350 participants, suggestions from over 1,000 people, and submissions by 19 foreign governments from Australia to Saudi Arabia.

This is a sobering picture of the energy problem: "Because the world's population is growing and living standards are rising worldwide, energy consumption globally is expected to jump by more than 50 percent over the next 25 years. But finding supplies to match that growth is going to be increasingly tough, and will require massive new investments in coming decades." See the article here.

We have the "stuff" of natural resources and we have the "structured stuff" of derivative paper. What would you rather own?

Movin' on Monday - Jeffrey Cooper - 9:39 AM

The DJIA has closed in on its prior highs at approximately 13,750.

The S&P closed below its 1540 June high on a Friday which is a bullish ding in the armor especially as the index made a new high on the week and left a 'tail' closing at the low of the week.

This may a sign of the cycles I have been expecting to exert downward pressure

Internals are also waning -- a/d line, new highs/new lows.

However the S&P has not yet confirmed a sell signal. If the index holds 1520 this week it could make a run for the projected square out at 1576 or higher.

It is also interesting that 1576 is two times the March 2003 low where the advance began.

So, the picture was not pretty as last week ended, but it is still also a picture of a possible Jack in the Box on the weekly S&P chart here, i.e a pullback week after a breakout.

On The Radar:

  • (BIDU) shows the first real pullback since exploding higher and tagged its 20 moving average on Friday leaving a solid Snapper set up which could always develop into a test of the high even if the stock has topped out.

  • Trina Solar (TSL) from Friday still sets up as a cup and handle pullback.

  • Ditto InterContinental Exchange (ICE).

Position in TSL.

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No positions in stocks mentioned.

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