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: Dow, Nasdaq Strong Again


Your daily Buzz & Banter highlights...

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

Long-Term Look at Financials - Kevin Depew - 3:26 PM

Here are some charts from Investors Intelligence that I think illustrate the long-term context for financials.

The first is a point and figure chart of Goldman Sachs (GS). The chart below shows the stock has violated a long-term trendline (2x3 scale) that extends back several years. This is a very important change in context worth noting.

Click to enlarge.

The next chart is a relative strength chart on a point and figure basis showing GS versus the S&P 500. The sell signal and column of Xs is another definitive context change warning that any positions should be for very short-term bounces.

Click to enlarge.

Finally, here is a chart of the iShares Financial ETF (IYF). It too shows a definitive context change; a long-term multi-year trendline has been violated.

Click to enlarge.

Minyan Darren asked about the financials as a trade. The bottom line, in my opinion, is there are much easier trades for those who are patient. GS and IYF may very well bottom soon and fly higher from here: who knows? But out of thousands of stocks, why try to trade the ones that are the riskiest?

Grandma Goldman Alert - Bennet Sedacca - 2:15 PM

Goldman Sachs (GS) is trying to put in a tested low on the hourly charts. See it below.

Click here to enlarge.

If it were to break above that downward sloping trend line, a move to 205-210 could not be ruled out.

Keep your eyes peeled, folks.This would have a huge impact on XLF as well.

Position in XLF

Total Recall and other Randoms - Jeff Macke - 1:25 PM

First Thomas the Train toys were recalled, now Mattel (MAT) has announced recalls on Elmo, Dora the Explorer and a slew of other popular favorites in the Jeffmacke household. Nothing tests a commitment to free-trade like the threat of your children being poisoned.

The toymakers, including my Hasbro (HAS) have taken at least their fair share of the sell-off as the consumer is increasingly called into question. Hasbro's dip is starting to get interesting but my general fear of the overall tape is keeping my bat shouldered. In other news...

  • Clorox (CLX) is getting pounded today after the company whiffed of something the opposite of clean bleach in their report this morning. I featured CLX in a favorably toned piece regarding Proctor & Gamble (PG) on last night's Fast Money. I still like PG, who reports in the morning, for what it's worth.

  • World Wrestling Entertainment (WWE) has given back a good portion of the gains from this morning, after the company reported decent numbers. We'll have Linda McMahon on the show tonight; suffice it to say, the company is facing "issues" well beyond the results of last quarter.

  • In a very similar vein, Starbucks (SBUX) has gone negative. One of the hidden benefits of caffeine is that it (hopefully) made for quick trigger-fingers for those who took trading long-positions in the name. Big picture, SBUX has Venti issues.

Position in HAS

Some Observations - Sally Limantour - 11:41 AM

  • Kind of bizarre but consistent with a stagflation theme, Rio Tinto (RTP), a leader in finding, mining and processing the Earth's minerals, reported that the rising cost of labor and materials hurt has hurt its earnings despite the commodity boom, reports the WSJ. Minyans, this is real inflation when the "stuff makers" are complaining about the high cost of stuff.

  • Will Japan be a destination of dollar holders as they take advantage of the low value of the yen to go on a buying spree of Japanese assets? I think so, as they have weathered a 15-year deflation.

  • "Pop and drop" is becoming a theme song for the indices.

  • This week's Economist describes the recent shift in the behavior of sovereign wealth funds (SW) worldwide. I am becoming more intrigued by them and their future purchases day by day. This will be huge and the natural resource sector will be a large part of it as nations position themselves to have the resources to feed, clothe, house and mobilize their populations. Currently 1 bln people use two-thirds of the the world's natural resources. 5.6 bln use the other one-third. Meanwhile, 3 bln people are discovering capitalism.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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