Mid Afternoon Notes and Comments

After being away for a week I've had to take care of a bunch of non blog related issues.

As noted over the weekend, Downey Financial (DSL) was mentioned in Barron's as a subprime lender at risk for causing grief to its shareholders. Its shares are down 5% today with put volume running 10-1 vs calls in the March contracts.

Anyone notice the Dow Transports today?

Worst session for the trannies since August. It was a nice run while it lasted. Richard Suttmeier, this guy is one sharp cookie who I interviewed on Bloomberg Television and radio in the 90's, has some very worthy comments if you think valuation means anything - otherwise skip it.

Anyone notice XBD today?XBD breakdown should be reason for concern, or am I just fear mongering? Anyone with half a brain knew the gig was up after those incredible Q4 and 2006 numbers would be an almost impossible act to follow in 2007 - plus throw in subprime risk and you've got the recipe for XBD breakdown. December lows of 235 sure seem like a good target.

But even as I write this, I'm seeing 1200 NYSE ticks again to save the day. Even New Century (NEW) has had a big recovery from down 7% to being lower by less than a 25-cents (which is why I wasn't so enthusiastic about jumping on those Mar10 puts). So all seems "normal" for another day. The trend is your friend.