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Buzz Bits: Dow, Nasdaq Close in the Red


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 - 3:47

  • As go the piggies, as goes the puke? Note the session lows for the banks and brokers, particularly Grandma Goldman, who is testing a very important level at GS $190.

  • Could this be a function of funds paring exposure to financials in front of month end? Sure can--that's viable, in the least, and possible at the margin but remember that they're being purged for a reason.

  • I've heard several unconfirmed rumors of a massive hedge fund failure. I won't name names but it's a top ten global player. Do I believe it? Yes and No--I think there will be several high profile casualites of war but I think today's melt was a function of three letters. A. H. M.

  • I've pared some of my S&P 1490 put fade (35%) and reserve the right to take a bit more off the table into the close.

  • Why? IF S&P 1460 holds, the "double bottom crowd" will emerge (after the fact, as many seem to be doing these days). That, and my desire to bat for average rather than swing for the fences lends itself to baby steps on the broader journey.

  • Fare ye well into the bell and have a mindful Minyan night.


Position in S&P

Through the Looking Glass, Darkly - Jeffrey Cooper - 1:56 PM

When is the last time we saw the Soul of Sentiment (of this year long advance anyway), Apple (AAPL), deep red, back to back, within the context of two up days in the broad market? AAPL was up $1.50 at the open!

When leading go-to names like CF Industries Holdings (CF) and Mastercard (MA) reverse huge gains within hours (each were high five in this AM) what does that say about the notion of distribution and liquidation, voluntary or involuntary?

Affiliated Managers Group (AMG) sets up as an interesting short candidate back to its breakdown point.

Position in MA

USA? USA? - Kevin Depew - 12:57 PM

A headline on the Drudge Report right now says: "USA! USA! GM posts $891-million profit..."

While General Motors (GM) did post an $891 mln profit, North American operations reported a net loss of $39 mln and sales "fell short of expectations," with a full 80% due to tax-related gains. The positives - an increase in sales of profitable truck and vehicles with high-end equipment packages - were offset, the company said, by lower volumes of sales and unfavorable foreign exchange rates.

In other words, GM managed to post a profit despite weak American sales volumes and a U.S. dollar that has depreciated to its lowest level in 15 years. "USA!", indeed.

I don't know which is worse; the general lack of education in economics and finance that allows for the perception that the GM results are in any way indicative of anything remotely positive for the U.S., or that most people don't seem to care one way or the other and in fact actually seem to prefer sloganeering over news reporting and analysis.

A New Bubble Alert - Bennet Sedacca - 10:20 AM

It's amazing how these patterns end up lining up, but this one is cool.

A couple of years ago, I started highlighting how parabolic the homies had become, and compared against the bubble days of the Nikkei and the Naz. It helped me, big-time, to avoid the implosion in housing and credit.

So I had this thought. Mirror mirror on the wall, what is the newest bubble of all? The one everyone says is invincible: China.

In the chart below, I have added China's Shanghai Shenzen Composite to the bubbles.

Click here to enlarge.

I think this is important to watch.

Personally, I am taking a peek at the China Fund and FXI on the dark side, but need to do a little more work.

No positions in stocks mentioned.

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