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Buzz Bits: Dow, Nasdaq Dip Into Red


Your daily Buzz & Banter highlights...

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

We Gotta Bleeder Here!- Todd Harrison- 3:32 PM

I hear ya Mary, there's something about this tape that just doesn't feel right. The key to the vault all day has been the slippy, drippy financials--from the opening turnaround to the latest leg lower. We've spoken about this complex (and its influence) seven ways till Sunday and the fender bender is front and center.

Why did the sell-off pick up steam? If I had to venture a guess, I would offer three thoughts:
  • There are mounting concerns regarding further fesses and messes into quarter-end.

  • The pattern of higher opens and heavy closes is beginning to manifest in the mindset of investors. It's not healthy action and it's no longer isolated.

  • The gorillas in the midst have digested the latest episode of "Fed in a Box" and are acting accordingly.
The level of lore, of course, is S&P 1490, which was so rigorously defended on Wednesday. While alotta bulls woulda thought that level was inconceivable a few short hours ago, it's front and center into the last half hour. My gut says the bulls successfully defend that zone today (given the flat NYSE internals) but that's only half the issue. For the risk profile you go to sleep with today is the same one you awake with Monday.

For my part, and prolly not a shocker, I would err on the side of caution given the smells and the tells. It's gonna be uber-thin next week (read: volatile) and absent an eye-popping Snapper, we'll get a probe (at least) after our requisite two-day respite.

Gotta hop, Minyans--fare ye well into the bell and have a mindful weekend.


Managing an Apple Core- Jess Thompson- 12:21 PM

I posted an actionable buy idea for a tactical long in Apple (AAPL) the other day. I'd certainly take partial profits and would raise the stop to minimize risk in case the trade implodes -- which can happen suddenly.

I'd classify this trade as a tactical long with short-to-intermediate potential. Tactical because AAPL has not offered up a significant retracement or liquidation so I would not expect being long AAPL from this week's low is a trade location that's easy to manage as a core long.

The potential is short-to-intermediate. If AAPL remains mired in the current multi week congestion, today's bloom may be short-lived and fade quickly and suddenly at the top of this range. I'm looking for a sudden influx of giddiness in the form of a daily range expansion to sell another tranche.

The intermediate potential only comes into play if AAPL manages to work higher and free itself up by consecutive closes at new highs.

Position in AAPL

Chew On This...- Ryan Krueger- 10:05 AM

Just a heads up to put on your screen if you're chewing on the tasty charts Bennett has thrown on the hibachi the past two weeks on the Japanese Bond Market.

If the currency and futures markets or foreign bonds are out of your reach as an investor, I urge you to familiarize yourself with some of the new offerings from Rydex (RCD) like the CurrencyShares; one of them is the Japanese Yen (FXY).

If you like to look at un-crowded, heavily sold investments of any kind, it's worth a peek. If you believe it potentially offers a key ingredient to the credit bubble unwinding, it may be worth more than a peek.

If this were a stock, would you buy it?- Bennet Sedecca- 8:51 AM

I would. What is it?

10 year Gilt yields from England in log format.

Click here for full sized chart

It underscores the global bond rout and the fact that inflation, in my opinion, is higher than is being reported to us. Judging by the raises I am being asked to give, which is a real life scenario, proves the point. People are asking for raises because they are feeling the pinch in THEIR lives.

I continue my cautious stance and am now quite under weight duration and basically void of credit risk.

I own a few Fannie Maes, which has a little risk, but mostly Treasuries and Ginnies.

For what it's worth.

Positions in Treasuries, FNMA, GNMA
No positions in stocks mentioned.

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