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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Upgrades

By Jim Cramer
7:13 a.m. EDT

Remarkable series of upgrades this morning: Bank of America raises

Caterpillar

(CAT) - Get Report

ahead

of what is thought to be a horrible quarter.

Disney

(DIS) - Get Report

and

CBS

(CBS) - Get Report

taken up at Morgan Stanley; the former has been hot as it is. And

Johnson Controls

(JCI) - Get Report

with its big number just now and lots of market share take...

Positions: None

Bank Credit Rallies on CIT News

By Tom Graff
7:45 a.m. EDT

Bank and finance bonds are tighter today on news that

CIT

(CIT) - Get Report

has reached a deal with existing bondholders, averting bankruptcy for now.

Bank of America

(BAC) - Get Report

,

Citigroup

(C) - Get Report

,

JPMorgan Chase

(JPM) - Get Report

and

Wells Fargo

(WFC) - Get Report

are all about 10 tighter,

Goldman Sachs

(GS) - Get Report

and

Morgan Stanley

(MS) - Get Report

both 5 tighter.

I think CIT remains a cautionary tale. Government money was not forthcoming for CIT. It does sound like some regulatory relief may happen, allowing assets to transfer to the bank part of the company. Regardless, if the company hadn't been able to work out a private funding deal, there wasn't going to be any federally funded white knight riding to the rescue.

I don't understand why investors remain so sanguine about similar-sized financials:

Fifth Third

(FITB) - Get Report

,

KeyCorp

(KEY) - Get Report

,

Comerica

(CMA) - Get Report

,

Marshall & Ilsley

( MI),

M&T Bank

(MTB) - Get Report

, etc. CIT proves that none of these guys are "too big to fail."

I'm not here to opine about the specifics of any particular bank's loan portfolio, but long-term subordinate bonds in regional banks are now trading near $80 (vs. $100 par), and it seems to me that price reflects a greater level of government support than actually exists.

In an apparently unrelated story, the FDIC closed two more banks this weekend. Can someone please explain the disconnect here?

Positions: None

Coiled Springs for the New Week

By Alan Farley
8:00 a.m. EDT

Many stocks have gone straight up in the last week, increasing risk of entry because a downturn could start at any time. To lower the added danger, I've built of list of coiled-spring patterns, which are stocks that have tightened up at near breakout levels but still haven't started to run higher.

These offer two advantages. First, rallies often expand into these issues as hot money takes profits on big movers. Second, tight stops can be placed just under recently traded levels, making any losers easier to take.

The market is grinding out a bunch of decent-looking coils right now. Here are eight that look promising this morning:

Juniper rallied into an unfilled September gap at $24 in early June and dropped into a sideways pattern. It returned to the high last Wednesday and tightened into into a coiled spring right at the breakout level. A rally here could reach the 2008 high near $30. The company reports earnings on Thursday.

Positions: None

Human Genome Sciences

By Adam Feuerstein
8:04 a.m. EDT

Human Genome Sciences

( HGSI) will be the bio stock to watch today after

positive results from its lupus drug trial

were reported.

Already this morning, Citi upgraded the stock to buy and a $17 price target. Lazard upgrades to hold from sell with a $10 fair value. Piper Jaffray saying the stock is going higher and it's reviewing its $1.70 price target. (Obviously.)

Positions: None

Eaton?

By Tim Melvin
10: 54 a.m. EDT

The real story in

Eaton

(ETN) - Get Report

is how bad the report really is if you read the whole thing. Profits fell 92% year over year, and revenue was down 32%. The company lowered annual guidance for the third time this year. The CEO commented that the outlook for the year was far weaker than anticipated, saying that end-markets would decrease by 26%. The story, as with so many other companies, was cost-cutting. This is like bleeding the patient and shaving off a limb or two to restore health.

The stock is trading at 25 times the high end of the new forecast. Would you pay that multiple to buy into this business? I would not, and neither would any rational businessman I have ever known. This "less bad is good" is starting to remind me of the Internet bubble pricing.

Positions: None

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