Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz Bits: Markets Decline After Fed


Your daily Buzz & Banter highlights.


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

Bullets Over Broadway! - Todd Harrison - 2:31 pm

  • The first move? Higher, to S&P 1404.57. Too easy?

  • What did moi do? Sold a little Microsoft (MSFT) (through the lens of market exposure, not as it relates to the Yahoo (YHOO) deal) and bought a few Merrill (MER) puts. Todd-Lots R' Us as the smoke clears and traders steer. I'm being careful not to trade for trading sake.

  • Woah, I think I actually just heard myself getting fatter.

  • Market breadth* hasn't budged from it's 2:1 positive posture.

  • The risk to the short side in gold and crude can be summed up in two words. Iran.

  • Man, I wish this tape was easy like Sunday morning!


Positions in MSFT, MER

The Zuch and Riverbed - Sean Udall - 2:26 pm

Prof. Zucchi and I are both on top of bandwidth growth but we come at it differently.

Such said, Riverbed (RVBD) doesn't give him the warm fuzzies, while I say it's now stuck in show me mode. Probably about the same theme but differing context.

In fact our only big difference is that I don't hate the option repricing. Reason being is simply that RVBD is in the talent acquisition and retention game. So it needs to do what it will do to keep its R&D edge. This sort of thing can't happen every time the stock drops, but given recent market conditions I don't have a big issue here as a shareholder. Moreover, I would be a lot more worried about the stock if talent was walking across the street.

Otherwise, I think the Zuch is on point with his RVBD and Blue Coat Systems (BCSI) commentary.

I would equate RVBD 2008 to Juniper (JNPR) in 2006. At that point everyone and their mother was saying JNPR was broken, its core router edge was lost and new product growth wasn't going to work. I contended that JNPR was firmly in show me mode and undervalued, while its competitive position would firm up again. Time will tell if this thesis holds for RVBD, (as it did for JNPR), but that's my best guess currently.

Also, to summarize my Savvis (SVVS) comments from earlier, I think the stock is undervalued anywhere south of $18. I bought a partial position and will look to add over time. However, I'm not expecting a quick hit here. I'm legging into a valuation situation here.

Position in RVBD, SVVS

Snapper Within a Snapper - Jeffrey Cooper

Deckers Outdoor (DECK) sets-up as a good risk to reward short on the snapper back from this morning's spike down.

Why? Monday left a short term sell signal and Tuesday looks like a classic pause (paws?) day before pulling back further.

See the 10 minute chart of today and the daily for the year below.

Click to enlarge

Click to enlarge

The big picture may be a snapback to resistance while the short term suggests a retracement.

Position in DECK

Hoofy n' Boo - Terry Woo - 11:40 am

A few updates from this morning's Two Ways to Play:

From the Bull Pen:

  • Bulls see a breakout in the Real Estate Index Fund (IYR) above the 200-DMA; sell-stops below $70 or $66 for those with a higher risk profile.
    IYR is trading +0.29% to $70.31.
  • Bulls still see a series of higher highs and lower lows in the financial ETF (XLF); sell-stops can be set below $25.50 on upside tries
    XLF is trading +0.33% to $26.78.

From the Bear Cave:

  • Considering the weakened consumer as well, bears see a downside play in Ethan Allen (ETH); buy-stops can be set above $29.
    ETH is trading +1.50% to $28.51.
  • Those bearish on Citigroup (C) can press the downside; buy-stops may be set above yesterday's close ($26.32).
    C is trading -3.23% to $25.48.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos