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Sony's Big Whiffer


Electronics company misses majorly on earnings.


Greetings from New York where I'm not all that upset about not buying the open. Would I have liked to have caught the trade? Oh yeah. Does it gall me that I lost a "the high for the day gets made in the first 30-minutes" bet with a noted Bear? Yup.

But today isn't my first rodeo, Minyans. Trades will be caught and trades will be missed but, if you're doing this "trading" thing right, you'll survive to see another opportunity. Here's what I'm watching as I try to catch some rays, stay laid back and generally channel my inner Mathew Mcconaughey:

  • Assets in an uptrend find a reason to go up; when that trend breaks those same assets find excuses to go down. Witness: Crude and it's ETF the USO. Yup, demand is down and some OPEC fella says he thinks prices could go much lower. All well and good but a month ago, when the crayon was holding, the market would have called "Shenanigans" to both and rallied crude a buck because Nigerian militants remain, as it happens, militant.

  • The banks remain a trade of faith rather than conviction. Merrill's (MER) move last night can be interpreted any number of ways but it increases my actual conviction on only one point, and forgive me if you've heard me say this before: The banks themselves have absolutely no idea what their "real" balance sheets look like. They'll take whatever they can get if it means staying alive. That being the case, if you're trading banks on "Book Value" you might as well read The Great Gatsby. (CDO's are like the Green Light).

  • On the topic of "Clueless"; Sony (SNE) missed by nine miles and promised more of the same. Like Microsoft (MSFT), Sony seems to have spent billions trying to win the hearts and minds of the video game set without any firm (or even mushy) plan for what it was going to do once it got into the living room. CEO Howard Stringer will remain a Dark Knight indeed until he starts integrating those insane corporate smokestacks at Sony.

  • Some nice back and forth going on regarding yesterday's column about the Toyota (TM) conundrum. I enjoy a good debate and I love the environment. I simply don't see a real eco-friendly solution to oil dependence in the pipeline of any automaker. What's more, and stop me if this sounds a bit cynical, America's Sense of Urgency (SHRUG) regarding fixing the oil problem is breaking down along with the price of crude.

  • You wanted a shirtless Mathew Mcconaughey link? It's the Internet, people. Find your own.

  • Disney (DIS) continues to make me leery ahead of its report tomorrow night. The stock is in a "Yeah, But" price trap (eg "Yeah, they beat but the consumer will catch up to the resorts next quarter"). Just so you know, I'm looking to do some hedging or trimming if I can find my price ahead of the report.

  • With today's rally, US Steel (X) is once again bigger than the American Mafia.

  • Starbucks (SBUX) is saying "Get Bent, Mate" to Australia, ditching the bulk of its stores down under. I'm still leery of the stock (after a very brief bullish thought) but Howard Schultz is sort of quietly doing the right things in terms of turning this thing around. Or at least stabilizing the decline.
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Position in DIS

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