Top Takes From RealMoney

The continuing weakness in real estate and low levels of economic activity are crushing the small regional and community banks right now. This is one of my all-time favorite groups, but it is still a few ticks too soon to do broad buying in the sector. The number of troubled institutions now stands at 305, the most since 1994, and more are expected.

As weakness and continued failures pressure the group, you need to watch the small banks very closely. There is a large fortune to be made in this group as soon as there is stabilization in real estate prices. Hold your fire until you see the whites of their eyes, and steady balance sheets.

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A Delicious DISH

By Alan Farley
06/29/09 9:09 a.m.

Dish Network(DISH Quote) shows a pattern that's developing across dozens of stocks as we head into summer. The satellite provider recovered from last year's crash with a steady rally that reached the 200-day EMA in May and promptly stalled out. The subsequent pullback has been orderly, with a constructive volume pattern. The decline has generated a trendline that will break on a rally above Friday's high.

A buying spike that tests the May high will complete an eight-month cup-and-handle pattern that should support much higher prices. However, it isn't a good idea to underestimate the magnetic power of the 200-day EMA. Any trade taken on a trendline breakout needs to be closely managed, because that level could trigger a reversal at any time.

Positions: None

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Debt Revival a Major Surprise

By Marc Chandler
06/29/09 10:47 a.m.

One of the surprising developments in the first half of 2009 has been explosion of debt issuance. Globally, the financial sector issued about $730 billion of debt while the nonfinancial sector issued about $886 billion. Financial issuance was helped by a number of countries guaranteeing bank bonds and by banks switching to less expensive debt. Bond issuance was also boosted by the impairment of banks.