Top Takes From RealMoney - TheStreet

The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.

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Out of Trading Shorts and Into Small Longs

By Doug Kass

1:23 p.m. EDT

I am a buyer of what represents value and a seller of what represents merchandise that is dear.

As one who does not worship at the altar of price momentum, I am seeing some developing values in the market.

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Accordingly, I am now out of my trading short rentals and I have bought small longs (on a scale) into this morning's weakness.

I will add on further downside pressure.

No positions.

Commodity Swap Bumps and Bruises

By Howard Simons

11:59 a.m. EDT

There has been some mention made of how rogue traders and fat-fingered mistake-makers can wreak havoc with the economics of fuel users. This is only true at the narrowest of margins.

A typical fuel hedge contract is a geometrically weighted index swap where the index itself is a formula based on a basket of competing fuels. The geometric weighting scheme minimizes the impact of one-day outliers. As a refresher, an arithmetic average over 10 days is the sum of the 10 prices divided by 10. A geometric average is the product of the 10 prices taken to the tenth root.

If anyone decides to buy or sell an airline stock based on some overnight goofball's trading miscue, please do so and end my search for this year's Darwin Award winner.

No positions.

Now It Gets Interesting

By Tim Melvin

11:03 a.m. EDT

Earnings season is upon us. I know the official earnings season kicks off on Wednesday with the

Alcoa

(AA) - Get Report

report, but there are some reports tomorrow worth monitoring as well.

Ruby Tuesday

(RT)

and

International Speedway

(ISCA) - Get Report

both report on Tuesday, and they are great discretionary spending tells. Casual dining is bad and getting worse as near as I can tell. I am short several names (using put spreads since I am a chicken short) in the space and have been all year. NASCAR-related spending is way down and I expect that to be reflected in International Speedway's numbers.

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It is gong to be an interesting week as we get our first look at the state of corporate America. Maybe we can at last leave the politics and pronouncements aside and look at real business conditions for a change.

No positions.

AMAG Pharma

By Adam Feuerstein

10:59 a.m. EDT

AMAG Pharmaceuticals

(AMAG) - Get Report

shares spiked because the launch price of Feraheme was released by third-party providers and it's higher than the Street was expecting -- a good thing!

The Street was generally modeling a roughly 20% pricing premium for Feraheme over its competitors, but AMAG is pricing the drug at a 40% premium, according to

JPMorgan Chase

(JPM) - Get Report

analyst Matt Roden.

No positions.

Corporate Bonds Weak

By Tom Graff

10:37 a.m. EDT

Corporate bonds are weaker this morning on light activity. I'm hearing there are few aggressive sellers, but those who do want to lighten up are finding soft bids. Bank paper is 10 wider with most other sectors 0-5 wider.

In credit ETFs,

iShares iBoxx High-Yield Corporate

(HYG) - Get Report

and

SPDR Barclays Capital High-Yield Bond

(JNK) - Get Report

are both down over 1%. The

iShares iBoxx Investment Grade Corporate Bond Fund

(LQD) - Get Report

is in line with Treasury bonds.

Long LQD.

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This article was written by a staff member of RealMoney.com.