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Jordan Kahn
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Jordan Kahn, CFA is the President and CIO of KAM Advisors, in Beverly Hills, CA. He is a frequent market commentator for numerous investment publications, and has appeared on CNBC and KNBC-Los Angeles. He is a regular columnist for Wall Street All-Stars and has also been featured in... More
My company:
KAM Advisors
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In The Money
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  • Monday Morning Musings

    Kind of a slow summer Monday morning. There wasn't any big M&A news to report from the weekend, and there isn't much in the way of corporate news in general. The biggest thing going on are all of these ice bucket challenges for ALS. But nice to see them raising money for a good cause. Check out ESPN's story on Pete Frate's to learn more about how it started.

    In economic news, the NAHB Housing Market Index for August rose to 55 from 53. Housing hasn't provided much of a boost to the economy in recent months, but hopefully it can get going again.

    Asian markets were mostly higher overnight. In China, home prices fell for a 3rd straight month, even though they were higher on a year/year basis. European markets are also higher today after foreign ministers met over the weekend to discuss a potential ceasefire between Russia and Ukraine (no agreement reached yet).

    The 10-year yield is getting a bounce from Friday's low levels, and is trading near 2.37%. The volatility index is down another 5% to 12.50. And gold prices broke below the $1300 level this morning and are now sitting right at that key psychological level.

    Trading comment: The S&P 500 and the mid-cap index are both breaking back above their respective 50-day averages this morning, while the Nasdaq is making new highs. Unless there is a major negative reversal later today this will be a pretty good sign that bulls are back in charge and the market could be looking at new highs in the near-term. We admit we again felt like the markets would get a deeper correction, maybe a 5-7% pullback, but that does not seem to be in the cards at the moment. One day we will get another 10% correction, but that doesn't mean it won't be from higher levels first. We would be looking to add to stocks making new highs now as they should lead for awhile.

    Aug 18 11:43 AM | Link | Comment!
  • Monday Morning Musings

    Markets are in rally mode in early trading, following Friday's nice gains and more geopolitical news of another ceasefire in Gaza as well as a request for a cease fire from Pro-Russian separatists in Ukraine.

    In earnings news, Priceline (NASDAQ:PCLN) beat estimates but offered mixed guidance. Nonetheless the stock is trading higher currently and looks like it could challenge its old highs soon.

    In M&A news, Kinder Morgan (NYSE:KMI) got announced a big deal to bring all its spin-outs back under one roof, buying back KMP, KMR, and EPB for a deal valued at roughly $70B. KMP is up roughly 15% on the news.

    Asian markets were higher overnight, as are European markets this morning. Gold prices are slightly lower near $1309 while oil prices are up a bit to $98.40.

    There has been a big drop in volatility this morning, with the VIX trading more than 10% lower and back down near the 14.0 level. It tested the 17 level several times last week, but never definitively closed above it.

    As for the 10-year yield, it broke down to new 1-year lows last week dipping below the 2.40% level. This morning it is slightly higher near 2.43%. I still expect a move higher in the 10-year by year-end, but the timing of rates moving higher has stymied even the best traders out there.

    Trading comment: The markets had become pretty oversold, so this bounce should not be surprising. It likely started with some short-covering on Friday and has carried higher today on the geopolitical news. But SPX 1940 is still resistance for now, and we would really have to see the SPX trade back above its 50-day to get excited about more new highs. For now, we think this bounce is just part of the consolidation process and are remaining cautious for the time being.

    Disclosure: The author is long KMP.

    Aug 11 10:48 AM | Link | Comment!
  • Monday Morning Musings

    Markets are lower out of the gate this morning on not a whole lot of news. This feels more sentiment driven, as earnings reports late last week were not greeting with much positive reactions so there might be a little profit taking going on after stocks have enjoyed a nice run in recent months.

    There was more M&A activity over the weekend. Dollar Tree (NASDAQ:DLTR) is acquiring Family Dollar (NYSE:FDO) for a 23% premium. And Zillow (NASDAQ:Z) will buy Trulia (NYSE:TRLA) for a 25% premium to Friday's closing price.

    In economic news, pending home sales for June fell -1.1%, below expectations.

    Asian markets ended higher overnight. China spiked +2.4% amid speculation for more stimulus measures out of Beijing. European markets are mixed. Moody's raised Portugal's sovereign debt rating one notch with a 'Stable' outlook.

    Oil prices are a bit lower to $101.15 and gold prices are higher back above $1300 to $1304.

    The volatility index is higher today, up nearly 5% over 13.25. And the 10-year yield is a touch higher to 2.48%, but still below the 2.50% level.

    Trading comment: The S&P 400 midcap is breaking below its 50-day average while the SPX and Nasdaq are still well above their respective 50-days. While it has been a long time since we have had a real pullback, it does seem likely that the SPX should at least test its 50-day support again in the near future. The SPX 1960 level has been recent support, so maybe that is the first leg at which we would start to put some money back to work.

    Jul 28 11:16 AM | Link | Comment!
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