Home / 2011 / September (page 11)

Monthly Archives: September 2011

Steve Leisman on his ESFS: Rumor: “The Market is Ahead of Itself”

CNBC Deputy of the Rumor Dept., Steve Leisman, said “if the market is going up on my rumor, it is ahead of itself.” Clarifying the fact that nothing has been resolved in Europe and nothing has even been officially proposed.

He furthered, “Europe is either in for $2 trillion or the euro is done.”

Comments »

The SEC Lowers the Threshold for Circuit Breakers

Via SEC website:

SEC to Publish for Public Comment Updated Market-Wide Circuit Breaker Proposals to Address Extraordinary Market Volatility


Washington, D.C., Sept. 27, 2011 — The Securities and Exchange Commission today announced that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) are filing proposals to revise existing market-wide circuit breakers that are designed to address extraordinary volatility across the securities markets. When triggered, these circuit breakers halt trading in all exchange-listed securities throughout the U.S. markets.

The proposals being filed today would update the market-wide circuit breakers by among other things reducing the market decline percentage thresholds necessary to trigger a circuit breaker, shortening the duration of the resulting trading halts, and changing the reference index used to measure a market decline.

If approved by the Commission, the new market-wide circuit breaker rules would replace the existing market-wide circuit breakers, which were originally adopted in October 1988 and have only been triggered on one day in 1997.

“This new market-wide circuit breaker together with the other post-Flash Crash measures is designed to reduce extraordinary volatility in our markets,” said SEC Chairman Mary Schapiro. “We look forward to reviewing the comments, including any views on how the proposed circuit breaker changes might work together with the proposed limit up-limit down mechanism for individual securities.”

The SEC will seek comment on the proposed rule changes, which are subject to Commission approval following a 21-day public comment period.

Market-Wide Circuit Breaker Proposal

The proposals would revise the existing market-wide circuit breakers by:

Reducing the market decline percentage thresholds necessary to trigger a circuit breaker from 10, 20, and 30 percent to 7, 13, and 20 percent from the prior day’s closing price.

Shortening the duration of the resulting trading halts that do not close the market for the day from 30, 60, or 120 minutes to 15 minutes.

Simplifying the structure of the circuit breakers so that rather than six there are only two relevant trigger time periods — those that occur before 3:25 p.m. and those that occur on or after 3:25 p.m.

Using the broader S&P 500 Index as the pricing reference to measure a market decline, rather than the Dow Jones Industrial Average.

Providing that the trigger thresholds are to be recalculated daily rather than quarterly.
The market-wide circuit breakers were not triggered during the severe market disruption of May 6, 2010, which led the exchanges and FINRA in consultation with SEC staff to assess whether the circuit breakers needed to be modified or updated in light of today’s market structure. In addition, the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues recommended in February 2011 that the SEC and CFTC review the current operation of the market-wide circuit breakers, and consider appropriate modifications.

Other Post-May 6 Actions

The SEC has undertaken other initiatives to respond to the events of May 6, including:

Approving rules that require the exchanges and FINRA to pause trading in certain individual securities if the price moves 10 percent or more in a five-minute period. This pilot program applies to all exchange-listed stocks and exchange-traded products.

Approving new exchange and FINRA rules clarifying up front how and when erroneous trades would be broken.

Approving new rules of the exchanges and FINRA to strengthen the minimum quoting standards for market makers and effectively prohibit “stub quotes” in the U.S. equity markets.
The Commission also is considering a proposal by the exchanges and FINRA to establish a “limit up-limit down” mechanism to address extraordinary market volatility in individual securities.

In addition, the SEC has:

Adopted a rule requiring broker-dealers to have risk controls in place before providing their customers with access to the market.

Adopted a rule establishing a large trader reporting system to enhance the Commission’s ability to identify large market participants and more effectively collect information on their trading activity.

Proposed a rule to establish a consolidated audit trail system to better track orders and trades in securities across the national market system.
Next Steps

The proposed rules will be available on the SEC’s website. The Commission intends to promptly publish the proposed rules in the Federal Register for a 21-day public comment period, and then will review the comments received on the proposals.

Comments »


Shares of RIMM are rising on rumors swing trader Carl is gonna take a stake.

Comments »

Upgrades and Downgrades This Morning


CLX – Clorox upgraded to Average at Caris & Company

IVN – Ivanhoe Mines upgraded to Outperform from Neutral at Credit Suisse

MMS – MAXIMUS initiated with an Outperform at JMP Securities

SYK – Stryker upgraded to Overweight from Neutral at JP Morgan

HEP – Holly Energy Partners upgraded to Buy from Neutral at UBS

VRA – Vera Bradley initiated with a Buy at Jefferies

PDS – Precision Drilling initiated with an Outperform at Credit Suisse

UAL – Ticonderoga raises most Q3, lowers most Q4 EPS ests for the airlines

PNRA – Panera Bread initiated with a Buy at Lazard

NCIT – NCI upgraded to Market Perform from Underperform at Wells Fargo

AH – Accretive Health initiated with a Buy at UBS

BG – Bunge upgraded to Buy from Hold at Citigroup

BSX – Boston Scientific upgraded to Neutral from Underweight at JP Morgan

CHD – Church & Dwight target raised to $50 at Oppenheimer

EQY – Equity One upgraded to Hold from Sell at Citigroup

ALXN – Alexion Pharma initiated with a Outperform at Oppenheimer

BAX – Baxter upgraded to Overweight from Neutral at JP Morgan

TSLA – Tesla Motors FY12 ests raised at Dougherty


ZMH – Zimmer Hldgs downgraded to Neutral from Overweight at JP Morgan

ABT – Abbott Labs downgraded to Neutral from Overweight at JP Morgan

FFIV – F5 Networks initiated with a Hold at Jefferies

AMCX – AMC Networks initiated with a Sell at Stifel Nicolaus

CF – Fertilizer sector downgraded at Atlantic Equities

WMS – WMS Industries downgraded to Neutral from Buy at Sterne Agee

HUN – Huntsman removed from Conviction Buy List at Goldman

IT – Gartner initiated with a Neutral at Goldman

RVBD – Riverbed Technology initiated with an Underperform at Jefferies

SYK – Stryker target lowered to $61 from $68 at Stifel Nicolaus

ARUN – Aruba Networks initiated with a Hold at Jefferies

RAH – Ralcorp Holdings target lowered to $84 at Stifel Nicolaus

Comments »

Gapping Up and Down This Morning

Gapping up

SLW +8.5%, SLV +7.5%, MCP +6.1%, FTK +5.2%, KGC +4.8%,  STD +2.3%, HBC +2.1%, GS +1.9%, GDX +3.4%, OKS +3.3%, HL +3.1%, MEAS +3.1%,

MT +3%, BHP +2.6%, RENN +2.6%, BBL +2.2%, RIO +1.8%, BAC +1.5%, BG +2.1%,  POT +2.6% , AFFY +4.5% ,

GEL +2.5%, FTK +7.1%, OKS +4%, WAG +2.3%, TCK +4.2%, EXK +4%, AU +3.9%, AUY +3.8%, OKE +2.3%, FDO +0.7%, IDCC +3.3%HL +3.1%,

MT +3%, GDX +2.9%, BHP +2.9%, BBL +2.9%, RIO +2.3%, DB +6.8%, ING +6.1%, CS +5.4%, NBG +4%, BCS +3.2%, LYG +3.2%, MS +2.7%, C +2.7%,

RBS +2.5%,

Gapping down

Bear short sales…. IDTI -2.5%, KEYW -17.5%, IDCC -0.5%, ACW -8%,

Comments »

Let’s Try Reality For a Change

Are you sick of the picture being painted ? Even if you do not pay attention to the world you know deep down what is being projected in papers and mainstream media are not congruous to reality. How long can you live with finding out the truth only after the shit hits the fan ?

Are you thirsting for a real person with real ideas ?

Look no further than….

Comments »

Despite New EFSF Approach Merkel States Greece Needs a Firewall for Default

“I don’t rule out at all that at some point we will have the question whether one can do an insolvency of states…”

This quote, perhaps more than any other in the past few weeks and months of this impending(?) crisis, tips the E.U.’s economic hand to the markets and world: “We are set to distance ourselves from Greece.”

The never ending flip flop on sovereign debt crisis….

Comments »