Overheard on StockTwits: Rally Mode

• zerobeta
• November 5th, 2009

Each day we dig into the StockTwits stream and try to bring you the morning vibe.  Here's what we found today:

The buyback is back, especially in the tech world with $CSCO and $RIMM buying back shares.  Last time companies were buying back shares it was at the top, so as far as signals go this is probably not the best, although $RIMM has taken a nasty dive as of late.

$UNG is a popular natural gas play on the stream and has been a perennial disappointment to many longs.

Great analogy of the market action as of late.

Awesome link from the LinkMaster General @abnormalreturns.   Looks at asset correlations, the carry trade and hedge fund returns.

It's interesting that the $GS P&L distrubution is starting to change.  It used to be that they didn't make a ton of money or even lost money most days but had a few huge days.  Now they just print money every day.

Wow, sentiment got bearish pretty quickly.

While I think @nycwerewolf raises a good point in the context of a global economy - with a global companies and a global workforce, the fact is that the US is THE consumer in the world.  Eventually, unemployment here will eat away at our ability to consume and at a major piece of the global economic puzzle.

$CVS is down big today.  One would think a consumer staples company would be doing relatively well in this climate.  Perhaps thats what the market expected.

While they aren't tanking any more, they continue to lag the overall market and MUST be watched.

While $CSCO is still up nicely it has sold down from its initial gap up.  This has been a pattern in stocks with great earnings as good news is being sold off in this market.

Two great observations from the always on-point @TheKirkReport.

While productivity is up due to job cuts there is a ton of unproductive human capital not being put to work.

Watch $JNK as a gauge on market appetite for risk.  Long $JNK short $SPY could be a nice trade to take advantage of this divergence.

Rally on Garth!

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